Why More Growth Companies Are Looking Beyond the Traditional IPO
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Enhanced Games at Resorts World Las Vegas. PHOTO: FACEBOOK@ENHANCEDGAMES
Enhanced Games reached the public markets in less than six months.
In an era where traditional IPOs can take more than a year to complete, the speed of the company’s merger with A Paradise Acquisition Corp. (NASDAQ: APAD) stands out, particularly given the significantly tighter regulatory scrutiny surrounding SPAC transactions since 2021.
The transaction highlights why some growth-stage companies are evaluating special-purpose acquisition companies (SPACs) as a viable alternative to the traditional IPO process.
Led by Dr. Aron D’Souza and backed by investors including Peter Thiel and Christian Angermayer, Enhanced Games announced its Business Combination Agreement with APAD in November 2025. The transaction closed in May 2026, bringing the company to the public markets materially faster than the timeline typically associated with a conventional IPO.
For decades, the traditional IPO has been considered the default route for private companies entering the public markets. But for many high-growth businesses today, the process has become increasingly slow, expensive, and difficult to execute efficiently.
A conventional IPO can take well over a year to prepare, involving extensive audits, regulatory reviews, underwriter coordination, investor roadshows, and careful timing against market conditions. During that period, companies remain exposed to volatility, shifting investor sentiment, and delayed access to capital. According to EY, many companies postponed planned IPOs amid market volatility and uncertainty surrounding U.S. tariff announcements, highlighting how sensitive IPO execution can be to broader market conditions.
For businesses operating in fast-moving industries, timing matters. Delayed access to liquidity can slow expansion, hiring, acquisitions, partnerships, and product development at critical stages of growth.
That is one reason why the merger between Enhanced Games and APAD is notable. The SPAC structure allowed Enhanced Games to negotiate valuation, governance terms, and financing arrangements early in the process, compressing many of the steps normally associated with a conventional IPO into a single transaction.
Enhanced Games operates across sports, media, performance science, and wellness, sectors that require significant upfront investment and rapid execution. Earlier access to public capital provided the company with liquidity, visibility, and strategic flexibility at an important stage of growth.
The public listing also gives the company tradable equity that can potentially support acquisitions, partnerships, athlete compensation structures, sponsorship arrangements, and future fundraising initiatives. These capabilities are particularly relevant in industries evolving as rapidly as sports entertainment, wellness, and human-performance science, where speed itself can become a competitive advantage.
The deal also highlights one of the SPAC market’s core advantages: the ability to combine capital raising and public-market entry within a single process.
Beyond speed, the SPAC structure offered Enhanced Games another major advantage: earlier visibility into valuation.
In a traditional IPO, pricing is largely determined near the end of the process through institutional book-building and investor demand during the roadshow phase. Even late-stage IPO candidates can face valuation cuts, downsized offerings, or postponed listings if market conditions weaken.
Recent IPO markets have repeatedly demonstrated this risk. Instacart went public in 2023 at an approximate US$9.9 billion valuation, which is dramatically below the US$39 billion private valuation it achieved during the 2021 market peak. Similarly, WeWork’s failed IPO attempt became one of the clearest examples of how rapidly investor sentiment can shift during the IPO process.
SPAC mergers operate differently.
Enhanced Games secured an implied enterprise valuation of approximately US$1.2 billion months before closing the transaction. While the merger still required SEC review and shareholder approval, the company gained significantly greater visibility into deal economics much earlier in the process.
That certainty is particularly valuable for growth companies whose valuations are tied more closely to long-term platform potential than near-term profitability.
Rather than relying entirely on shifting IPO market sentiment, the SPAC structure allowed Enhanced Games to negotiate around its broader growth strategy and future expansion plans from the outset.
The Enhanced Games transaction also reinforces why some growth-stage companies evaluate SPACs as an alternative to the traditional IPO process.
Traditional IPO investors often prefer businesses with long operating histories, stable earnings, and predictable growth profiles. Many expansion-stage companies simply do not fit that model yet, even if their long-term opportunities are substantial.
SPACs offer a different pathway.
Instead of waiting years to achieve the operational maturity typically expected in a conventional IPO, companies can access public-market capital earlier while still in growth mode.
For Enhanced Games, early access to the public markets provides more than capital. Public equity can support acquisitions, partnerships, athlete compensation structures, sponsorship arrangements, and future fundraising efforts. These capabilities are particularly important in sectors evolving as rapidly as sports entertainment, wellness, and human-performance science, where speed itself can become a competitive advantage.
The transaction also highlights how the SPAC market has evolved since the speculative boom of 2020 and 2021.
Today’s de-SPAC environment operates under significantly tighter regulatory scrutiny, including enhanced disclosure requirements, greater SEC oversight, and stricter treatment of projections and liability standards.
The Harvard Law School Forum on Corporate Governance noted that redemption rates spiked in 2022, in some cases approaching 100%, contributing to a significant slowdown of the SPAC activity.
In response to rising investor concerns and regulatory pressure, the U.S. Securities and Exchange Commission adopted enhanced SPAC disclosure and liability rules in 2024 designed to align de-SPAC transactions more closely with traditional IPO standards. Sponsors also faced greater pressure to demonstrate financing certainty, stronger disclosures, and more credible post-merger execution.
Enhanced Games completed its transaction within this more disciplined environment.
Its Form S-4 included audited financial statements, governance disclosures, transaction details, and extensive risk-factor analysis subject to SEC review. The company also supplemented SPAC trust proceeds with a separately arranged US$40 million PIPE financing commitment designed to strengthen liquidity and improve deal certainty.
That structure reflects a more institutional and disciplined SPAC market than the speculative wave seen several years ago.
The Enhanced Games transaction demonstrates that, despite tighter regulation and a far more selective market environment, SPACs can offer certain growth companies a practical alternative to the traditional IPO.
For businesses prioritising speed, capital access, and execution certainty, a well-structured de-SPAC transaction may provide a more efficient route to the public markets, particularly when supported by credible financing, disciplined structuring, and strong investor backing.
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As workplace knowledge spreads across chats, AI firms are building systems that can structure, retrieve and preserve it over time.
Updated
May 26, 2026 5:40 PM
A messaging app on a phone. PHOTO: ADOBE STOCK
Votee AI, an enterprise AI company headquartered in Hong Kong, has partnered with its Toronto-based research lab Beever AI to launch Beever Atlas. The new platform is designed to turn workplace chats into searchable knowledge that AI systems can retrieve and understand.
The release focuses on a growing issue inside organisations. Much of today’s workplace knowledge now exists inside chat platforms such as Slack, Microsoft Teams, Discord and Telegram. Important discussions, project decisions and technical information often disappear into long message histories that are difficult to search later.
Beever AI developed the platform to organise those conversations into a structured system for AI assistants. The software connects with Telegram, Discord, Mattermost, Microsoft Teams and Slack, then converts conversations into linked records of people, projects, files and decisions.
The collaboration combines Votee AI’s enterprise infrastructure work with Beever AI’s research around AI memory systems. The companies are releasing two versions of the product. The open-source edition is aimed at individual developers, researchers and creators. The enterprise edition is designed for banks, government agencies and larger organisations with stricter security requirements.
The release also reflects a broader shift happening across the AI industry. Companies are increasingly looking at how AI systems store and retrieve long-term knowledge, rather than relying solely on large context windows or search-based retrieval.
Earlier this year, OpenAI founding member and former director of AI at Tesla Andrej Karpathy discussed the growing need for what he described as “LLM Knowledge Bases.” He argued that AI systems need structured and evolving memory rather than depending only on context windows and vector search.
Beever Atlas approaches that problem through workplace communication. Instead of focusing mainly on uploaded files, the system is designed around conversations that happen daily across team chat platforms. It can also process images, PDFs, voice notes and video files within the same searchable system.
The companies say the software is designed to work directly with AI assistants and coding tools such as Cursor, AWS Kiro and Qwen Code. Integrations for OpenClaw and Hermes Agent are expected later in 2026.
Pak-Sun Ting, Co-Founder and CEO of Votee AI said: "Hong Kong has always been known for property and finance. Beever Atlas is proof that world-class AI infrastructure can emerge from an HK-headquartered company and be shared openly with the world. Every growing organization faces the same silent liability: conversational knowledge loss. Beever Atlas turns this perishable resource into a compounding organizational asset."
A large part of the enterprise version focuses on privacy and access control. The system mirrors permissions from Slack and Microsoft Teams so users can only retrieve information they are already authorised to access. Permission updates are reflected automatically when access changes inside company systems.
The enterprise edition also includes audit logs, encryption controls and data retention settings for organisations handling sensitive internal data. Companies can run the software entirely inside their own infrastructure using Docker and connect it to their preferred AI models through LiteLLM.
The companies argue that organising information is more useful than simply storing chat archives. Jacky Chan Co-Founder and CTO of Votee AI said: "The key technical decision was to treat agent memory as a knowledge engineering problem, not a retrieval problem. Structure beats similarity — a typed graph of who works on what is more useful to an AI than vector search over a Slack archive."
The software also includes protections against prompt injection attacks and systems designed to reduce hallucinated responses. According to the companies, the AI is designed to return “I don't know” with citations when confidence is low instead of generating unsupported answers.
As workplace communication becomes increasingly fragmented across chat platforms, companies are beginning to treat internal conversations as information that AI systems can organise, retrieve and build on. Beever Atlas reflects a broader push to turn everyday workplace communication into long-term organisational memory.