Alternative Investing Report - December 24, 2024

*as of 12/23; Sources: S&P, BTC, FTSE, DJRE, CL50

While there haven’t been a lot of tech IPOs in 2024, those startups that did go public performed very well, with Pitchbook’s VC-backed IPO index up 66% so far this year. Reddit is up 240% since its IPO, and Rubrik and Astera Labs are both rose more than 100%. ServiceTitan’s recent IPO has succeeded too, with the stock rising more than 40% since its debut earlier this month.

➨ TAKEAWAY: The IPO market has been slow, as many late-stage companies have stayed private for longer. While some companies don’t feel any urgency to go public, many were hesitant to jump into an uncertain market. The strong performance of tech IPOs in 2024 should encourage more to go public going forward. There are now over 1,200 startups with a $1 billion valuation or higher (“unicorns”), with many strong IPO possibilities in the coming year.

In the newest episode of Smart Humans, Slava Rubin talks with Cambria Investment Management’s CEO and founder Meb Faber about the ideal portfolio allocation, his 2025 outlook, and why investors should look at emerging markets.

An experimental screening method that combined the talents of cancer-sniffing dogs with new AI technology successfully detected 94% of cases in four different types of cancer - breast, lung, colorectal and prostate cancer. The screening was just as effective for harder-to-detect early stage cancers as it was for late-stage cancers. The company behind the trial, SpotitEarly, is planning a larger clinical trial and is aiming to report further results in early 2026.

🏡 West Coast home sales: The West dominated the rankings of metro areas with the biggest jumps in home sales, led by Portland (+27.6% year-over-year) and followed by San Jose, Seattle, San Francisco, Sacramento, and San Diego. A shortage of inventory and increased demand are causing many homes in these markets to sell over the list price.

🪙 Trump’s crypto council: The incoming President named Bo Hines as the executive director of his new “Crypto Council” which will be chaired by David Sacks, the previously named Crypto Czar. The council will be tasked with helping to “foster innovation and growth” in the crypto space.

🏢 CRE originations are up: Bank loan origination volume for commercial real estate rose by 13% in Q3, though it still remains 53% below pre-pandemic levels. Multifamily is a bright spot with loan originations up 76% year-over-year, while office continues to struggle, posting the highest delinquency rate (8%) and the biggest decline in volume (76%) since 2019.

🚀 Carbon capture: A number of promising startups backed by the likes of Bill Gates, Jeff Bezos, and SoftBank, are attempting to pull carbon dioxide out of the atmosphere to slow climate change. The market for carbon dioxide capture is one that could see massive growth in the coming years.

🎨 Lucie Rie auction: The Austria-born British ceramicist who passed away in 1995 was the subject of a solo auction held by Phillips earlier this month, where 71 of her works sold for a total of $3.2 million, as demand for her work keeps rising.

🏡 Tiny home thefts: One downside of the tiny home trend is that owners can actually have their entire home taken by thieves, which is a little more difficult with a traditional home.

A former Amtrak railway station located a block from the Grand River in Grand Rapids, Michigan, is on the market for $1.5 million. It sits on 0.6 acres of land in a federal Opportunity Zone, and is just down the block from where a 12,000 seat riverfront amphitheater is being built and is due to open by 2026. Given its location, the property is ideal for retail or a restaurant, though there has been interest in just using it for parking.