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 look at how motivation, not metrics, is becoming the real frontier in fitness tech
Updated
February 7, 2026 2:18 PM
A group of people running together. PHOTO: FREEPIK
Most running apps focus on measurement. Distance, pace, heart rate, badges. They record activity well, but struggle to help users maintain consistency over time. As a result, many people track diligently at first, then gradually disengage.
That drop-off has pushed developers to rethink what fitness technology is actually for. Instead of just documenting activity, some platforms are now trying to influence behaviour itself. Paceful, an AI-powered running platform developed by SportsTech startup xCREW, is part of that shift — not by adding more metrics, but by focusing on how people stay consistent. The platform is built on a simple behavioural insight: most people don’t stop exercising because they don’t care about health. They stop because routines are fragile. Miss a few days and the habit collapses. Technology that focuses only on performance metrics doesn’t solve that. Systems that reinforce consistency, belonging and feedback loops might.
Instead of treating running as a solo, data-driven task, Paceful is built around two ideas: behavioural incentives and social alignment. The system turns real-world running activity into tangible rewards and it uses AI to connect runners to people, clubs and challenges that fit how and where they actually run.
At the technical level, Paceful connects with existing fitness ecosystems. Users can import workout data from platforms like Apple Health and Strava rather than starting from scratch. Once inside the system, AI models analyse pace, frequency, location and participation patterns. That data is used to recommend running partners, clubs and group challenges that match each runner’s habits and context.
What makes this approach different is not the tracking itself, but what the platform does with the data it collects. Running distance and consistency become inputs for a reward system that offers physical-world incentives, such as gear, race entries or gift cards. The idea is to link effort to something concrete, rather than abstract. The company also built the system around community logic rather than individual competition. Even solo runners are placed into challenge formats designed to simulate the motivation of a group. In practice, that means users feel part of a shared structure even when running alone.
During a six-month beta phase in the US, xCREW tested Paceful with more than 4,000 running clubs and around 50,000 runners. According to the company, users increased their running frequency significantly and weekly retention remained unusually high for a fitness platform. One beta tester summed it up this way: “Strava just logs records, but Paceful rewards you for every run, which is a completely different motivation”.
The company has raised seed funding and plans to expand the platform beyond running, walking, trekking, cycling and swimming. Instead of asking how accurately technology can measure the body, platforms like Paceful are asking a different question: how technology might influence everyday behaviour. Not by adding more data, but by shaping the conditions around effort, feedback and social connection.
As AI becomes more common in consumer products, its real impact may depend less on how advanced the models are and more on what they are applied to. In this case, the focus isn’t speed or performance — it’s consistency. And whether systems like this can meaningfully support it over time.