A SPAC is a Special Purpose Acquisition Company. Until the loophole was recently closed (or at least narrowed), it was a way to speedrun becoming a publicly traded company, whether that’s a sensible move or not.
Basically, a venture capital outfit uses its millions and own positive balance sheet to get pre-approved to offer an IPO, then merges with another company that was the one they really wanted to have the IPO for in the first place, but doesn’t have the P/L to pass the consideration process.
