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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AI actor Tilly Norwood releases a musical video arguing that artificial intelligence can expand creativity in film
Updated
April 1, 2026 8:55 AM
AI Actor Tilly Norwood. PHOTO: INSTAGRAM@TILLYNORWOOD
As Hollywood prepares for this weekend’s Oscars, a different kind of performer is stepping into the spotlight — one that doesn’t physically exist.
Tilly Norwood, described as the world’s first AI actor, has released her debut musical comedy video, Take the Lead. The project arrives at a moment when artificial intelligence has become one of the most contentious topics in the film industry.
The message of the song is simple. AI should not be seen as a threat to actors. Instead, it can become another creative tool. The release also offers a first look at what Norwood’s creators call the “Tillyverse”. It is envisioned as a cloud-based entertainment world where AI characters can live, interact and perform.
Behind the character is actor and producer Eline van der Velden. She is the CEO of production company Particle6 and AI talent studio Xicoia. Van der Velden created Tilly as a way to experiment with how artificial intelligence could be used in storytelling.
The timing is not accidental. The entertainment industry has spent the past few years debating the role AI should play in filmmaking and acting. Questions about digital replicas, automated performances and creative ownership continue to divide artists and studios.
Norwood’s musical video enters that debate with a different tone. Instead of warning about AI replacing actors, the project suggests that the technology could expand what performers are able to do.
The video itself also serves as a technical experiment. The song Take the Lead was generated using the AI music platform Suno. The video was then produced using a combination of widely available AI tools and Particle6’s own creative process.
One of the newer techniques used in the project is performance capture. Van der Velden physically acted out Tilly’s movements and expressions so the digital character could mirror a human performance. But the production was far from automated. According to Particle6, a team of 18 people worked on the video. The group included a director, editor, production designer, costume designer, comedy writer and creative technologist. In other words, the project still relied heavily on human creativity.
“Tilly has always been a vehicle to test the creative capabilities and boundaries of AI,” van der Velden said. “It’s not about taking anyone’s job”. She added that even with powerful tools, good AI content still takes time, taste and creative direction.
The project also reflects how quickly production technology is evolving. Tools that once required large studios are now accessible to smaller creative teams experimenting with AI-driven storytelling.
For Particle6, the character of Tilly Norwood acts as a testing ground. Each project explores how AI performers might be developed, directed and integrated into entertainment. Whether audiences embrace digital actors remains an open question. Many in the industry are still wary of how AI could reshape creative work.
But projects like Take the Lead show another possibility. Instead of replacing performers, artificial intelligence could become part of the creative process itself. In that sense, Tilly Norwood may represent something more than a virtual performer. She is also an experiment in how humans and machines might collaborate in the future of entertainment.