Alternative Investing Report - October 21, 2025

*as of 10/20; Sources: S&P, BTC, FTSE, DJRE, CL50

The average asking rent for apartments in the U.S. declined in September, with Zillow pegging the decrease at 0.2% and Realtor.com recording a more extreme 0.6% fall. Zillow’s report showed single-family rent rising by 0.1% and up 3.2% year-over-year, which is better than the numbers for apartments, but also the lowest annual growth since 2016. Rents continue to fall the most in the Sun Belt, with Texas and Florida markets showing the largest declines in both reports. The biggest gainers came in the Midwest and on the coasts, with Chicago, San Francisco, and New York leading the way.

➨ TAKEAWAY: There is a predictably strong correlation between the metro areas where construction boomed the most and where rents fell the most due to increased supply. The markets that restrict development are the ones that continue to see rent growth. What is good news for renters is generally the opposite of what suits investors, but the slowdown could present opportunities, particularly in areas where construction rates are also slowing.

In the latest episode of Smart Humans, Slava Rubin talks with legendary VC investor Tim Draper about his early investments into iconic companies like Tesla and SpaceX, and the role of Bitcoin in the financial system.

Besides AI, the hottest sector in pre-IPO investing this year has been defense tech, which is on track to top $10 billion in funding, nearly triple the amount it generated last year. Drone companies have attracted nearly 60% of the capital deployed this year and account for five of nine defense tech unicorns. Anduril and Shield AI consistently rank among the most in-demand names for pre-IPO investors, and Voyager Technologies had a successful public offering in June.

➨ TAKEAWAY: While defense tech is now an established sector, as recently as 2019 the total amount of annual VC funding was below $500 million. While the rapid ascendance of the sector has led to concerns of a bubble, most industry experts are not worried. As government spending on defense grows worldwide, expect defense tech to continue to attract capital, though perhaps at a slower pace.

🪙 Schwab clients want crypto: Visits to Charles Schwab’s crypto platform have nearly doubled this year and its clients now own around 20% of all crypto ETF shares in the U.S. The brokerage is going to offer spot Bitcoin trading next year, and its success with digital assets will likely inspire other major asset managers to offer their clients direct access to crypto.

🏀 Most collectible NBA players: Based on total sales and grading submissions, Spurs star Victor Wembanyama tops cllct’s list of the 50 most popular NBA players in the hobby, topping legends LeBron James and Stephen Curry, as well as other young superstars Anthony Edwards and Luka Doncic.

🚀 Chobani funding round: The yogurt maker raised $650 million at a valuation of $20 billion as it aims to continue expanding its footprint and build on the 28% growth in sales it has achieved so far this year.

🎨 Bonhams sale: The mid-market auction house was bought by European private credit firm Pemberton Asset Management, who bought it from the private equity firm Epiris for an undisclosed sum and will replace most of the C-suite.

🏡 Build-to-rent slowing: The number of single-family homes that are being built specifically to rent out declined 0.7% in Q3, though the South saw a 2.3% increase and remains the region with by far the most BTR construction.

💵 Record infrastructure fund: The investment firm Ardian raised a $20 billion fund to invest in energy, transport and digital infrastructure projects in Europe, the largest ever fundraise for the strategy.

A four bedroom/3.5 bathroom house in a Philadelphia suburb in New Jersey has just hit the market with a shockingly low listing price of $1,000. Before you get too excited, keep in mind it’s simply a marketing tactic to drive attention to the property — and it’s working, obviously — which was previously listed in August for $599,000. The newly renovated house is nearly 2,400 square feet and has a wraparound porch, garage and a large backyard. In order to buy it, though, you’ll likely need to offer quite a bit above the current asking price.

_{^*Not all pre-IPO companies will go public or be acquired, and not all IPOs or acquisitions are or will become successful investments. Diversification does not assure a profit or protect against market loss. Securities offered through EquityZen Securities LLC, member FINRA/SIPC.}