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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The Influencer Evolution: Recognizing the Power and Potential of Each Type.
Updated
January 8, 2026 6:35 PM
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A group of people filming a video for social media. PHOTO: UNSPLASH
In an era where social media reigns supreme, influencers have emerged as powerful players in the marketing game. They have the ability to sway opinions, drive trends, and create waves of engagement that brands can only dream of. But not all influencers are created equal; they come in various shapes and sizes, each with a unique approach to connecting with their audience. Under standing the different types of influencers can illuminate how they impact our daily lives and the choices we make. Let’s dive into the captivating world of influencers and explore the diverse categories that define them.
When you think of influencers, mega influencers are often the first that come to mind. These are the A-list celebrities, athletes, and global icons with millions of followers on platforms like Instagram, TikTok, and YouTube. Their immense reach allows brands to tap into vast audiences, making them highly sought after for endorsements.
Mega influencers have the power to generate instant buzz around a product or campaign. Their celebrity status lends credibility, and fans are often eager to emulate their lifestyles. However, this type of influencer can come with a hefty price tag, making them suitable for brands with substantial marketing budgets.
Just below the mega influencers are macro influencers, who typically boast between 100,000to 1 million followers. While they may not have the same level of fame as celebrities, macro influencers often command a loyal and engaged audience. They are usually experts in specific niches, such as fitness, beauty, travel, or technology.
Macro influencers combine reach with relevance. Their targeted expertise allows brands to connect with specific demographics, making them an ideal choice for campaigns aimed at niche markets. Their followers often view them as relatable and trustworthy, which can lead to higher engagement rates.
Micro influencers are the rising stars of the influencer world, typically having between 10,000 to 100,000 followers. What sets them apart is their authentic connection with their audience. They often have a more intimate relationship with their followers, leading to higher engagement and trust.
Brands are increasingly turning to micro influencers for their ability to create genuine conversations around products. The cost-effectiveness of partnering with micro influencers also allows brands to run multiple campaigns across different influencers, amplifying their reach while maintaining authenticity.
At the bottom of the influencer hierarchy are nano influencers, who have 1,000 to 10,000 followers. While their follower count may be modest, nano influencers often possess a highly engaged audience that views them as close friends, families or peers rather than celebrities.
Nano influencers are perfect for brands looking to create grassroots campaigns. Their genuine enthusiasm and relatability can lead to strong word-of-mouth marketing. Engaging with nano influencers often comes at a lower cost, making them an attractive option for small businesses and startups.
Brand ambassadors are influencers who have a long-term relationship with a brand, often representing them across multiple campaigns. They can fall into any of the previous categories but are distinguished by their commitment to the brand and its values.
By cultivating brand ambassadors, companies can create consistent messaging and foster loyalty among customers. These influencers often resonate with audiences more deeply, as they embody the brand’s identity and promote its products authentically over time.
The world of influencers is as diverse as it is dynamic, with each type offering unique advantages for brands looking to connect with consumers. From the glitzy allure of mega influencers to the genuine relatability of nano influencers, understanding these categories can help brands make informed choices in their marketing strategies. As the digital landscape continues to evolve, the role of influencers will only grow, shaping trends and driving engagement in ways we are just beginning to comprehend. By leveraging the right type of influencer, brands can effectively navigate this vibrant ecosystem, ensuring their message resonates with the audiences that matter most.