Alternative Investing Report - February 17, 2025

*as of 2/16; Sources: S&P, BTC, FTSE, DJRE, GOLD

VC secondary deals, which is when existing shareholders of pre-IPO companies sell their shares to another investor, have continued to become more expensive as demand rises. Just a year ago the average secondary deal was at a 46% discount to the most recent valuation of the company’s shares, but that discount has now narrowed all the way to 3%.

➨ TAKEAWAY: This is a strong sign for the health of the pre-IPO sector, as investors are no longer willing to sell their shares at significant discounts. When discounts made certain pre-IPO shares look like bargains, VC firms such as StepStone raised massive secondary funds to take advantage. It is only natural that as more money flowed into secondaries, the spreads would narrow. At this trajectory, secondary markets could move back into premium territory for the first time since 2022.

In this episode of Smart Humans, Vincent founder Slava Rubin and Sacra co-founder Jan-Erik Asplund had a wide-ranging discussion about Elon Musk’s SpaceX, the most valuable private company in the world. They talked about the company’s growth, strengths, challenges and IPO prospects, and answered investor questions.

🏢 Senior housing boom: As the population of seniors 80 and over is projected to grow by more than 4 million in the next five years, and demand for senior housing, particularly luxury senior housing for wealthy Boomers, is expected to rise significantly.

🤖 xAI eyeing another big raise: Elon Musk’s AI startup is reportedly looking to raise a massive $10 billion funding round at a valuation of $75 billion, which would be a significant gain over its last valuation of $51 billion in November.

🏡 Austin’s rent price decline: The median rent in Austin has fallen by 16% year-over-year and is now 22% below its peak. Other markets that have seen annual declines include Tampa, Salt Lake City, and Jacksonville.

⚾ CollX fundraise: The trading card app with more than 3 million users raised a $10 million Series A, which follows a 2023 seed round that raised $5.5 million. CollX allows users to value their cards by taking photos, and also offers a marketplace with tens of thousands buyers and sellers.

💵 KKR buyout fund: The asset manager has raised around $14 billion for the first close of its next private equity buyout fund, as it heads towards it goal of $20 billion overall. It is a bullish sign that investors believe the M&A market is about to pick up steam.

🏀 NBA team values: At $9.4 billion, the Golden State Warriors are still the most valuable NBA franchise in the league, and its value has jumped by over 20x since owners Joe Lacob and Peter Guber bought it for $450 million in 2010.

Today: President’s Day, public markets closed.

Tuesday: Homebuilder confidence index released.

Wednesday: Housing starts and building permits numbers released; Apple is releasing a new mystery product.

Friday: Existing home sales report released.

Saturday: Goldin’s Winter 100 auction, featuring a LeBron James rookie card likely to top $1 million.

Disclaimer:
This is a paid advertisement for AMASS Regulation CF Offering. Please read the offering circular at invest.amassbrands.com.