It gives private equity (PE) ( I erred and said Venture Capital VC which Omar corrected) companies access to a broader range of investors to raise funds, it gives the prior owners companies that the SPAC buys more options to sell their interest , and so it maybe more attractive to sell to a SPAC if it’s a non cash acquisition. It also gives people who would not normally be able to invest in private equity the ability to do so through buying shares in the SPAC. There is nothing wrong with a SPAC, but it’s not the same as buying shares in Nvida or Ford or Amazon.
You have to know what the Spac will invest in, you need to trust the management team and the path they are on, and know it is probably more risky. If you trust trump and think his offering will go up in value you have a way to invest if you so wish.
Great explanation, thank you. Here’s another factor not mentioned so far in the thread that I saw.
There are SPACs that are created pretty much to make a purchase of an already-known target. This truth social situation is an example of that sort. it’s essentially an IPO by different means and yes, in many ways it is regulation and disclosure lite up until the transaction closes. Which can save everyone money and time complying with pettifogging bureaucracy. Or can hide skullduggery more effectively than an IPO can.
There are also SPACs that are created to invest in something, details TBD. Often they have an industry focus, like “invest in successful bio-pharma startups”, but not necessarily.
These latter involve a larger leap of faith by the investors that the SPAC managers will find a good target, not just any target, before the statutory two year life of the SPAC runs out.
OTOH, the former involves more opportunities for collusion between the takeover target and the SPAC managers to their benefit and the detriment of the SPAC investors.
In either case, once the acquisition is done and the SPAC is rolled up, full SEC disclosure stuff kicks in just like it does with an IPO.
Bottom line:
The nice part about investing in darn near anything is that it’s easy to know where the snakes are lurking: Everywhere. 
I don’t know that the first option is actually legitimate and legal. Perhaps it is, but either way DWAC fraudulently claimed that they were doing option #2 and were fined $18 million because it was clear that TMTG was really the only target they were ever going to merge with.
It is a special purpose acquisition corporation. It’s point is to accumulate shareholder’s investments and go and acquire something. People like to invest in all sorts of things. While I don’t really like SPAC’s as a publicly traded investment vehicle…some do. They’ve been around for decades and are not perenially popular. Wall street brokers like to drag them out and promote them when market conditions are right, which seems to be about every 10 years or so. They drag new investors in as if it’s some new type of asset class.