S is for Sponsor

Welcome back to The SPAC Podcast. In this series, we’re breaking down the seven stages of the SPAC process using the mnemonic SPECIAL — one letter at a time.

In this first stage, S stands for Sponsor Setup.

Every SPAC starts with a sponsor. Sponsors are the founding team — often investment professionals or former operators — who form the SPAC, contribute risk capital, and secure founder shares.

They play a critical role in setting the vision, building trust with investors, and ultimately identifying a strong acquisition target. Think of them as the lead architects of the deal.

No sponsor, no SPAC.