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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A smartphone that moves, tracks and responds in real time—but is it real utility or just a marketing gimmick?
Updated
May 1, 2026 2:25 PM
HONOR Robot Phone, with its camera arm extended. PHOTO: HONOR
Smartphones today feel more familiar than new. Each year brings better performance and better cameras, but fewer real surprises. So when a company unveils something called a “Robot Phone”, it’s bound to get attention.
HONOR did exactly that at the Mobile World Congress (MWC) in Barcelona this year. While most smartphone brands are focused on software upgrades, HONOR is trying something different with hardware. Its Robot Phone is built to move and adjust on its own. The camera sits on a motorized system that can tilt, track motion and shift angles automatically. It almost looks like a small robotic head, following whatever is happening in front of it. It can pick up sound, recognize motion and stay visually aware of its surroundings. This result feels less like using a regular phone and more like interacting with something responsive.
So what makes HONOR’s Robot Phone different from the smartphones we already use? Here’s a closer look at its camera system, AI features and design, and whether it is truly something new or simply smart marketing.
At its core, the Robot Phone still works like a regular smartphone. What makes it different is the camera system. It has a 200MP camera that sits on a motorized arm with a three-axis gimbal, which extends when in use and folds back into the phone when not needed. The compact motor gives the camera physical movement, while motion control allows it to sense, track and follow a person or object in real time. That means it can keep a subject in frame without constant manual adjustment.
The camera also adds a more playful side to the experience. It can respond with simple gestures, such as nodding or shaking its head, and it can even move in sync with music.
This setup could be particularly useful for content creators. As CNET tech journalist and YouTuber Andrew Lanxon pointed out, it removes the need to carry a separate gimbal. Since the robotic camera module can easily fold into the body of the phone, it is easier to carry around and more convenient for filming or taking photos on the go.
The Robot Phone also has the practical advantage of a smartphone display. It gives users a bigger screen than a standalone camera for framing, monitoring and reviewing footage. Since it runs on Android, the process of recording, editing and sharing content is also more direct.
The most impressive part of the HONOR Robot Phone design is how it fits a moving camera system into the body of a smartphone without needing external attachments.
To make this possible, HONOR uses a custom micro motor that is 70% smaller than mainstream competitors. The company also says it is the industry’s smallest four-degrees-of-freedom (4DoF) gimbal system. To support the stable movement of the camera module, the internal structure uses high-strength materials such as steel and titanium alloy. These materials help the mechanism stay durable as it shifts and repositions over time.
Battery life is another obvious question. HONOR has not revealed the battery capacity of the Robot Phone itself, but it did showcase its Silicon-Carbon Blade Battery technology at MWC 2026. The company says this battery is designed to increase energy density while keeping devices slim, and that it could support capacities of 7,000 mAh and beyond in future foldable devices.
That is not specific to the Robot Phone, but it does hint at the kind of battery improvements that may be needed for smartphones with moving parts and more advanced camera systems.
The AI features in Honor’s Robot Phone are focused on how the device sees and responds to its surroundings in real time. At the most basic level, the phone can track what is happening in a scene and adjust itself without constant user input.
On the functional side, the system keeps subjects framed and in focus automatically. Its AI Object Tracking ensures subjects stay centred, while AI SpinShot enables controlled 90° and 180° rotations for smoother transitions, even when the phone is used one-handed. It can also detect motion and recognize sound, which lets it respond to activity as it happens instead of reacting frame by frame.
The AI becomes more noticeable in the way the device behaves. When activated, the camera module unfolds and the screen displays a pair of animated eyes that track the user’s face and gaze. Honor calls this “embodied AI”, meaning the assistant expresses itself through movement rather than only voice or text. The camera module can adjust its angle during video calls, which makes it feel a little more physically present.
According to Thomas Bai, AI product expert at Honor, the goal is to move beyond passive assistance. By combining sensing, movement and real-time processing, the device is designed to interact with its environment in a more continuous way. In practice, that could mean interpreting its surroundings and responding as situations change, such as when someone is moving through an unfamiliar space.
The Robot Phone has sparked curiosity, but there is still a lot we do not know. For one thing, it is still a prototype, with a release expected later this year. Early signs also suggest it may be expensive, partly because of rising memory chip costs. Some of its more playful features also feel uncertain. In demos, the phone can move along to music, but with only a handful of pre-set tracks, it is hard to tell whether that feature will be genuinely useful or remain more of a showcase moment.
Then there are the practical questions. A motorized camera system could make the phone heavier and more top-heavy, which may affect comfort during daily use. Running a motor alongside continuous AI tracking will also likely put pressure on battery life. These are not dealbreakers, but they are trade-offs that will matter outside of a demo.
Privacy is another concern that is hard to overlook. Some of the AI features rely on cloud processing, which means certain data is sent to external servers instead of being processed fully on the device. That is common in many AI systems today, but it feels more significant here because the phone is built to actively track movement and reposition its camera in real time. For some people, that level of autonomy may feel intrusive rather than helpful. It also raises bigger questions about what sensors are built into the device and how much data they collect during everyday use.
So, is the HONOR Robot Phone a real step forward, or just a clever idea packaged well?
The answer depends on who it is for.
For content creators, the appeal is obvious. Early indications suggest it could make video capture easier by reducing the need for extra gear. Honor’s collaboration with cinema camera company ARRI also suggests a serious push toward more cinematic smartphone footage.
For everyone else, the value is less clear. Outside of content creation, it is still hard to see how these features would translate into everyday use in a meaningful way.
For now, the Robot Phone sits somewhere between promise and experiment. Whether it turns into a genuinely useful new kind of smartphone or fades away as a novelty will only become clear once it moves beyond controlled demos and into real life.