Alternative Investing Report - March 18, 2025

*as of 3/17; Sources: S&P, BTC, FTSE, DJRE, CL50

Milwaukee had the biggest year-over-year increase in median sale price of any U.S. market, rising a record 20% compared to the nationwide mark of 3.2%. Detroit came in second, followed by Nassau County, NY, San Jose, and Cleveland. Inventory is increasing nationwide, but Midwest markets continue to see declines in the number of homes for sale as buyer demand increases.

➨ TAKEAWAY: One reason for the surge in buying demand in the Midwest is that it remains the most affordable region in the country, even after the price increases. Pittsburgh ranks as the least expensive metro area, with Detroit, Cleveland, Buffalo, and St. Louis rounding out the top five. Investors should take note, as these metro areas won’t stay affordable forever, with buying demand continuing to push prices higher.

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VC-backed startups are increasingly buying other startups, as 34% of acquisitions of U.S. startups in 2024 had another startup as the buyer. This proportion has risen from 20% in 2018, as public tech companies have reduced their M&A footprint significantly due both to antitrust concerns and economic conditions.

➨ TAKEAWAY: Top public tech companies spent just $3.3 billion on acquisitions in 2024, compared to $19.2 billion in 2020. Late-stage startups that have raised massive funding rounds now have cash to jump into the M&A market themselves and have filled some of the gap left by the public giants. This trend is unlikely to slow down anytime soon, but if and when the public tech companies do come back into the market, there could be a uptick in M&A activity.

🚀 New solicitation rules: The SEC announced new guidance around general solicitation rules, meaning that companies trying to fundraise using 506(c) offerings, such as venture capital, private equity, or real estate syndications, are likely have an easier time. This could open up more investment opportunities for accredited investors.

🏡 Slow home price growth: The average home has seen its value rise by 2.1% year-over-year, the slowest pace in 18 months, as supply has ticked up and demand has remained stagnant. San Jose has seen the highest annual price growth, while Austin has seen the biggest annual price decline.

🏒 Wayne Gretzky stick: A hockey stick used by the GOAT to break the single-season goals record in 1982 is estimated to sell at auction for between $100,000 - $200,000, after the consignor bought it for just $4,000 last June and had it photomatched to the correct game.

📉 Consumer sentiment continues to fall: The University of Michigan Survey of Consumers had a reading of just 57.9, a 10.5% monthly decline, and significantly below expectations, as uncertainty surrounding tariffs and inflation continues to cause concerns.

🪙 Sui ETF: Canary Capital has filed the first proposed ETF for the crypto token Sui, which recently partnered with the Trump family’s World Liberty Financial.

💵 SoFi partners with Blue Owl: The fintech company signed a two year agreement to provide up to $5 billion of loans to its customers from funds managed by Blue Owl, the asset manager, as private credit continues to expand into personal loans.

A film production facility in downtown Catskill, NY, “The Lumberyard,” is heading to auction on Thursday. The 1.06 waterfront property has a 20,208 square-foot New York State Film and TV Qualified Production Facility, as well as three additional buildings totaling 13,450 square feet. Around two hours north of New York City, the property was originally listed for sale in 2023 for $11.5 million and the reserve price for the auction is $6.35 million. Ready to make your mark on Hollywood? This lot could be the first step.