One of the worst aspects of a SPAC is that it's essentially a grab-bag purchase since even once you know the company being bought, you still don't initially know whether it's a good investment. This is true even if you're somewhat familiar with the business. 23andMe for instance, is currently SPACing, and though you might've heard about the company before, it's still unclear how profitable it really is or how much growth we should expect from it.

S-1s really matter. WeWork is a perfect example of a seemingly successful company that was forced to reveal its failings before hitting the public market. If it SPACed instead, many investors would've likely bought it due to name recognition and found their money was now tied to a failing business model.

To be fair, the typical IPO process doesn't have too much to admire either. It ironically leaves the public out of the actual initial offering, walling off much of the initial growth of the share price (unless it’s a super-star stock which balloons once it hits the public market--which they rarely are). More companies doing direct sales is a welcome change.