Alternative Investing Report - December 2, 2025

*as of 12/1; Sources: S&P, BTC, FTSE, DJRE, CL50

Litigation finance, a $20 billion industry where investors cover plaintiff’s expenses in exchange for a cut of the eventual proceeds, has been facing strong headwinds this year. Regulatory changes, disappointing settlements, and fundraising struggles have hit the sector, raising questions about what its future looks like. In the U.S., Senator Thom Tillis introduced a measure that would institute a 41% tax on litigation finance profits, though it has not yet passed. And in the House, a GOP-backed bill that would require all civil litigants in federal court to disclose third-party funding deals could be coming up for a vote soon. If passed, it could discourage attention-shy investors from backing lawsuits in the future.

➨ TAKEAWAY: While the optics of litigation finance can seem shady at first, it does provide a necessary service for consumers and workers who otherwise would not be able to afford a legal battle against deep-pocketed corporations. In some ways, many litigation finance firms are similar to VC firms, where outsized returns in one case can make up for disappointing results in others, and the time horizon to hit those returns can be long. With the potentially damaging U.S. legislation, a number of prominent litigation finance funds have shifted gears, and perhaps investors should wait and see before jumping into the space as well.

Vincent co-founders Eric Cantor and Adam Katz discuss the recent acquisitions of pre-IPO trading platforms EquityZen and Forge Global by Morgan Stanley and Charles Schwab. (8 mins)

🚀 Defense tech record: VC funding to defense tech startups has hit a record-high $7.7 billion so far this year, more than double last year’s tally, led by Anduril’s $2.5 billion raise along with megarounds from Helsing, Saronic, and Chaos Industries.

🎉 ChatGPT turns 3: The AI model was launched just over three years ago, which is hard to believe given how massively influential and popular it has become in that timeframe. It is also a reminder of how much can change in a relatively quickly, and how different the landscape might be three years out from now.

🪙 Strategy cash reserve: The prominent Bitcoin treasury company raised $1.4 billion in cash to cover its interest payments until 2027, meaning that it will not be forced to sell any of its Bitcoin before then. The amount of Bitcoin the company holds and the falling price of the cryptocurrency has raised concerns that there might be forced sell-off that would tank the market.

🏀 Kobe game ball: The game-used basketball from the championship-clinching Game 6 of the 2000 NBA Finals is up for auction at Sotheby’s and has already attracted a bid of $400,000. The ball is signed by Kobe Bryant, Shaquille O’Neal, and others, and is from their first title winning season.

🤖 Robotera fundraise: The Chinese robotics startup raised a Series A of around $140 million at an undisclosed valuation, and entered into a partnership with the United Nations Industrial Development Organization.

🎨 “Lost” Rubens sale: A 1613 painting by Peter Paul Rubens that was only rediscovered last year sold for $2.7 million at a Paris auction.

If you’ve ever dreamed of reliving your college days, “Old School”-style, a former fraternity house on Drake University’s campus in Des Moines, IA, just came onto the market for $500,000. The 4,131 square-foot, 8-bedroom, 2-bath house is the former home of Phi Delta Theta, and is still configured as a frat house - the bathroom has multiple urinals and stalls, for example. The building has a 20-car parking lot, and is zoned “NX2,” meaning both residential and commercial activity is allowed. Given that the house already has meeting areas and recreation spaces, including a billiards room, the best fit might be as a co-working space.