Those tracking the recent surge in Special Purpose Acquisition Companies, or SPACs, have likely observed a notable characteristic of these blank-check entities created to bring private companies public: they are predominantly organized by men.

This isn't unexpected, considering the existing imbalance in representation of women in high-level financial roles within banking and the venture capital landscape. However, it raises concerns about whether women, who are already working to close a wealth gap, might be disadvantaged if this trend continues to grow.

Research indicates that women investors are significantly more likely to invest in startups that include at least one female founder – twice as likely, in fact – and over three times more inclined to invest in companies with female CEOs. It logically follows that SPACs with women sponsors might also prioritize identifying and merging with companies led by women, facilitating their public offerings.

SPAC sponsors stand to gain substantial financial benefits. By securing investors and convincing a target company to accept their proposed terms, sponsors typically receive 25% of the SPAC’s founder shares, potentially resulting in a significant profit within a relatively short timeframe, as SPACs generally aim to complete a merger within two years or less. Notably, sponsors are compensated even if the SPAC’s performance is poor, such as in cases where the merged company faces allegations of misconduct.

Kevin Hartz, co-founder of Eventbrite and overseer of a $200 million SPAC, explained this dynamic in August, stating that a $200 million SPAC generates a $50 million “promote” that is earned. He further clarified that even if the company’s value were to decrease by half over a year or 18 months, the shares would still be worth $25 million. (Hartz acknowledged this guaranteed payout as “egregious,” but he and his SPAC partner, Troy Steckenrider, opted for a straightforward structure as first-time SPAC sponsors.)

Women are not entirely absent from the current SPAC activity. A 2018 California state law requiring female representation on corporate boards has resulted in nearly all California-based SPACs including a female director, as previously reported by Axios.

Furthermore, in the past two weeks, at least three SPACs registered with the SEC have been launched either exclusively by women sponsors or with significant female participation. Hope Taiz, a New York-based investor with a background in investment banking at Drexel Burnham Lambert, filed plans with the SEC this week to establish Aequi Acquisition, a $300 million blank-check company.

Northern Star Acquisition, a consumer-focused SPAC co-led by publishing industry veteran Joanna Coles, submitted a $300 million IPO filing last week. Simultaneously, Climate Change Crisis Real Impact I Acquisition, a SPAC concentrating on climate technology, secured $200 million through an IPO, with Mary Powell, the former CEO of Green Mountain Power, serving as a co-leader.

Betsy Cohen, a founder and former CEO of the financial services firm Bancorp, has been particularly active in the SPAC space, creating four fintech-focused shell companies to date, the most recent of which raised $750 million last month. (Interestingly, the SPAC initiatives at both Goldman Sachs and Jefferies are headed by women.)

Considering these developments, it’s reasonable to question whether concerns about women being left out of this potential financial opportunity are premature. However, women-led SPACs still constitute a small fraction of the 133 SPACs that have collectively raised over $50 billion in funding this year (as of the latest count).

Moreover, to date, the only traditional tech investors involved in this market are men, including Chamath Palihapitiya of Social Capital (who is considering dozens of SPACs); Hartz and Steckenrider; entrepreneur-investors Reid Hoffman and Mark Pincus, Mickey Malka of Ribbit Capital; Emil Michael, a former Uber executive; and the founders of FirstMark Capital.

It doesn’t appear to be a lack of awareness on the part of female investors. Several prominent women VCs have indicated they are monitoring the situation and evaluating potential involvement. One prominent investor shared that she is researching the conditions under which it would be advantageous for VC firms to participate in the creation of a SPAC.

Others are exploring opportunities to gain exposure to SPACs through their existing portfolio companies. Dayna Grayson of Construct Capital, for instance, made an early investment in 3D printing company Desktop Metal – which is going public via a SPAC merger – while serving as a partner at NEA. At TechCrunch’s recent Disrupt event, Grayson described SPACs as a “great new viable alternative for companies” in relation to Desktop Metal.

Kristi Marvin, a former investment banker who now manages the data platform SPACInsider, suggests it’s not yet time for alarm.

She points out that, as with “most banking activities, SPACs are heavily male-dominated,” making it natural that more men are currently sponsoring these vehicles. She also suggests that a cautious approach might be wise, as the SPAC market appears to be becoming overheated, with a high volume of deals attempting to price simultaneously and investors reaching their capacity.

Marvin also emphasizes that SPACs require a level of expertise that some underestimate. “That’s why you see hedge funds and PE firms more involved in SPACs; they have the infrastructure to manage them effectively, unlike a group of three individuals burdened with a substantial amount of administrative work,” she explains.

Marvin anticipates that, as with other financial products, more women will become involved in SPACs over time, particularly if they demonstrate long-term viability as many proponents suggest. However, she cautions that “If, in a year or two, only male VCs have entered the SPAC market, it could indicate a significant issue.”