SPACs have recently become so popular because they offer opportunities for a higher valuation. SPAC in full is a Special-Purpose Acquisition Company. SPAC refers to a company that has no commercial operations. They are set up to raise capital to acquire existing companies to be merged with private companies.
SPACs are desirable to private companies because major shareholders and founder can sell the companies at a higher percentage than they would otherwise do with an Initial Public Offering(IPO)