Why did I say No to 100 SPAC offers? Because SPACs are Ponzi schemes.

I predicted the downfall of one of the biggest healthcare AI names in the industry's history, the day after its SPAC announcement. 18 months later, it filed for bankruptcy. Where was the SEC?

Have you ever been in a room with Special Purpose Acquisition Company (SPAC) salesmen praising your company, making you feel like you’re in a science fiction movie? I have. The experience is surreal. Someone tells you they can take your company public and make you rich overnight. All you have to do is sit back and relax. What's wrong with that? For starters, who are these people? I’ve just met them, yet they claim to understand my company and promise to deliver an IPO on a silver platter with a sky-high valuation. It’s flattering, but what's the catch?

The catch? SPACs are Ponzi schemes. They offer a dirt-cheap, semi-regulated way to take any company public. The biggest red flag? After a two-hour meeting, there was not one question about my company’s financials, ROI, profits, or customers.

As with everything in life, there’s no free lunch. I know this well. Where I came from, I had to fight for mine because grocery store shelves were often empty.

I've learned so much about SPACs that, on one occasion, I tried to warn investors of a major healthcare AI company against participating in its SPAC IPO offering. I was certain it was a Ponzi scheme where insiders get rich at the expense of unsuspecting retail investors. I’ll share this story and others below. But first things first...

Before delving into how this creative Ponzi scheme works, let’s review a few recent examples: