Alternative Investing Report - October 7, 2025

*as of 10/6; Sources: S&P, BTC, FTSE, DJRE, CL50

Global VC funding hit $97 billion in Q3, a 38% gain year-over-year and a 6% rise from Q2. Megarounds of more than $500 million accounted for 30% of all funding, more than double the proportion last year. Nearly half of all funding went to AI companies, with the three largest funding rounds going to Anthropic, xAI, and Mistral AI. Late stage funding was up a whopping 66% year-over-year, capturing most of the overall funding gains.

➨ TAKEAWAY: The resurgence in VC funding is entirely the result of the AI boom, and much of the funding goes to bigger, more established private companies. Pouring such a disproportionate amount of funding into one sector is risky, and talks of an AI bubble have started to become more commonplace. For now, VC firms seem comfortable betting on AI even with the rapid increase in valuations even for pre-revenue companies.

In this episode of Smart Humans, Slava Rubin talks with Siren CEO and founder Nicole Paulk about revolutionizing cancer treatment and the current state of the biotech market.

Crypto investment products saw a record $5.95 billion in net inflows last week, led by a record-high $3.55 billion into Bitcoin products, buoying the cryptocurrency to all-time highs. Ethereum saw $1.48 billion of net inflows, while Solana set its new high with $706.5 million, and both coins are up more than 10% in the past week.

➨ TAKEAWAY: In the aftermath of the U.S. government shutdown, institutional money is pouring into crypto, only one week after ETFs record a net outflow of $800 million. Morgan Stanley is now recommending some of its investors put 2-4% of their portfolios in crypto, a further sign of institutional confidence in the asset class.

🏡 Condo buyer’s market: There are more than 100,000 more condo sellers than buyers in the U.S., making it the best buyer’s market for condos since at least 2013, as rising insurance and HOA costs as well as the struggling Florida market are dissuading would-be owners.

🤖 Unconventional fundraise: The new startup founded by the former head of AI at Databricks is in talks to raise $1 billion at a $5 billion valuation to build a new type of AI computer.

💵 Government eyeing private credit: The U.S. Government Accountability Office (GAO), at the urging of multiple Senators, is preparing a report assessing the risks posed by the private credit industry, which could eventually open the door to new regulation.

🎨 Dali raid in Italy: Italian authorities seized 21 works from a Salvador Dali exhibition in Parma that are suspected to be forgeries, showing that even works on display could be of questionable provenance.

🪙 Stablecoin supply growing quickly: The global market cap of stablecoins has increased 47% since the start of the year, surpassing $300 billion for the first time.

📺 Walking Dead auction: More than 1,000 props from the long-running zombie show just opened for bidding at Heritage Auctions, with the auction ending on November 1st.

The 25-story U.S. Bank Center in downtown St. Paul, MN is heading to auction on November 10 as its owners have fallen behind on loan and property tax payments. The building has 380,171 square feet of office space, a 348-stall parking lot and four skyways connecting it to neighboring buildings. The current occupancy rate is only 26%, as its namesake tenant U.S. Bank, moved out last year. The property previously sold for $52.7 million in 2006, $21 million in 2013, and the starting bid in the upcoming auction is $1 million.