Alternative Investing Report - October 14, 2024

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*as of 10/13; Sources: S&P, BTC, FTSE, DJRE, CL50

Global VC deal value fell by 7.8% year-over-year in Q3, and by 24.7% year-over-year in September alone, while deal count also fell from 4,025 to 3,341. In the U.S., deal value fell by 32% in Q3, and deal volume was also down, but the average size of deals has actually risen. AI companies accounted by 31% of VC dollars in Q3, followed by Fintech, Retail Tech and Digital Health. Meanwhile, venture funds have raised $83 billion so far in 2024, down from the $95 billion raised in the first three quarters of 2023.

➨ TAKEAWAY: As a whole, the numbers look comparable to where the ecosystem was seven or eight years ago, as the pandemic-era boom is firmly behind us. VC firms are finding it harder to fundraise, as the lack of liquidity and middling returns in recent years have dissuaded investors. As a result, VCs are not funding as many startups, but are writing bigger checks to the most promising companies. The industry is hoping that interest rate cuts from the Fed will lead to more exit activity, which in turn will lead to greater investment, but those results won’t show up until next year at the earliest.

🪙 Hedge funds and crypto: Nearly half of traditional hedge funds now have some exposure to crypto, up from 29% in 2023, and a third of those plan to increase their exposure in the near future.

🏡 Most livable cities: Portland, ME, Lincoln, NE and Des Moines, IA, lead the way on livability, based on 17 factors categorized as socioeconomics, location and community, and quality of life.

⌚ Phillips watch auction: A 1970s Rolex Cosmograph Daytona is the most prominent lot at Phillips’ upcoming Geneva Watch Auction in November, and is expected to sell for as much as $1.9 million.

🚀 Cerebras IPO update: The AI chipmaker is reportedly postponing its IPO due to a U.S. national security review of its biggest customer and minority investor, G42, a UAE-based conglomerate. The IPO is still likely to occur in 2024, but it is no longer imminent.

🎨 François-Xavier Lalanne auction: The first auction dedicated entirely to the late French sculptor netted $58.9 million at Christie’s, with a 100% sell-through rate and 97% of the lots exceeding their high estimates.

Tuesday: Tax filing deadline for those who got extensions; Medicare open enrollment begins.

Wednesday: Sotheby’s Fine Watches auction, which features a dozen lots with estimates over $100,000.

Thursday: Homebuilder confidence index released.

Friday: Housing starts and building permit data released.

Saturday: Lelands’ Fall Classic Auction, featuring an original 1914 Baltimore Orioles Team Photo including Babe Ruth, that could fetch six figures.