Arrowroot Acquisition is a SPAC that raised $287.5M in its March 2021 IPO with the goal of merging with a private enterprise software or SaaS company, thereby taking that company public. Arrowroot has no operations, revenue, or employees beyond two part-time executives. The SPAC is affiliated with Arrowroot Capital Management, a tech-focused investor, which Arrowroot argues gives it an edge in sourcing and evaluating targets. The SPAC model works by holding IPO proceeds in a trust account until a merger closes or the funds are returned to shareholders. Sponsors receive "founder shares" at nominal cost — typically 20% of post-IPO shares — which convert to equity in the merged company, generating a large return if a deal closes. In April 2023, Arrowroot signed a merger agreement with iLearningEngines, an AI-powered learning and automation platform, at a $1.285B base purchase price. The deal has not yet closed. Arrowroot's trust has been severely depleted by shareholder redemptions: from $287.5M at IPO to roughly $10.8M today, well below the $100M minimum cash condition in the iLearningEngines merger agreement. Closing the deal would require iLearningEngines to waive that condition and Arrowroot to secure substantial additional financing. The SPAC is also out of compliance with Nasdaq listing requirements and has requested a hearing to avoid delisting.