Investors who bought shares in hotly-tipped companies that went public via special funds have lost more than half their money since last year.

Firms that floated via special-purpose acquisition companies, known as Spacs, are down 55pc from the high point in June 2021, according to the De-SPAC index of 25 firms. The list, compiled by The Herculoid Group, showed they have already fallen 20pc so far this year. 

These Spacs are essentially shell companies which raise money through an initial public offering for the purpose of acquiring existing companies. Those they buy are then listed on the stock market, via shares in the Spac.

More than 200 private companies went public in this way last year as investors piled into technology firms, encouraged by rock bottom interest rates and low inflation, according to Spac Track, a financial data firm. 

But the boom is well and truly over. Inflation is over 7pc in the United States and 5pc in Britain, and central banks are beginning to raise interest rates in a bid to bring it down. Higher rates decrease the appeal of stocks which promise profits way out into the future.

Terry Smith, manager of the £29bn Fundsmith Equity fund, said companies with expensive shares compared to their profits would be hit hardest. 

“The higher rated a company’s shares are, the more it will be affected by changes in inflation or interest rates. This is one reason why the shares of the new wave of unprofitable tech companies have performed so poorly latterly. As they are loss-making more than 100pc of their expected value is in the future.”