Alternative Investing Report - April 16, 2025

*as of 4/15; Sources: S&P, BTC, FTSE, DJRE, CL50

Funding for fintech startups hit $10.3 billion in Q1, the best quarter for the sector in two years, and an 18% gain over Q4 of 2024. However, deal count did fall, from 800 to 777, and the total funding number was buoyed by Binance’s $2 billion megaround - without it, overall funding would have declined. The number of fintech startups raising rounds of $100 million or more also fell, from 22 to 14. The sectors that saw strong momentum were AI, crypto, and digital banking.

➨ TAKEAWAY: Fintech has had a rocky few years, as funding has dropped from more than $32 billion in Q1 2022. While on raw numbers Q1 was an improvement, the trend is mostly flat, and the start of Q2 saw a couple of its biggest names delay a planned IPO (Klarna) and take a valuation haircut (Plaid). There had been hopes that 2025 would mark a comeback for the sector, but so far, it looks like more of the same.

There was record demand for apartments in Q1, as more than 138,000 apartment units were absorbed, the most ever for the first three months of the year, while rents grew by 0.3%. The markets leading the way were Atlanta, Phoenix, and Dallas. Meanwhile, a list of the top emerging multifamily markets was released, based on employment, occupancy, and investment numbers. Led by Tucson, AZ, the list includes a number of other cities with major universities like Madison, WI, Knoxville, TN, and Lexington, KY.

➨ TAKEAWAY: College towns are a reliable bet for multifamily properties, as the demand for rental units will always be strong. Nationwide, the rising demand is also being met by declining supply, as the number of new units being delivered this year is projected to be 26% lower than in 2024. This bodes well for the multifamily investors this year, and in the near future.

📈 Schwab going alternative: Schwab Alternative Investments Select, the investment manager’s new alternative investments platform, is now available to all eligible retail clients with more than $5 million in assets in their accounts. The platform offers access to third-party funds in asset classes such as private equity, hedge funds, private credit and private real estate.

🏡 Home price projections: Fannie Mae's panel of economists now forecasts that home prices will grow 3.4% in 2025, down from the 3.8% forecast in Q1 and significantly down from the 5.8% rate in 2024.

⚾ Roger Maris jersey: A game-worn jersey from 1961, the year Maris broke the home run record, is coming to auction next week at Sotheby’s with a $1 million - $2 million estimate, which would be a big jump over its last sale of just under $250,000 in 2022.

🚀 Longevity tech: Startups focused on extending the human lifespan raised nearly $300 million in 2024, doubling the total from 2023, and 2025 has started off well with epigenetic reprogramming startup NewLimit’s $72.3 million raise.

💵 Morgan Stanley PE raise: The Wall Street investment bank’s asset management arm raised $2.3 billion, nearly double its previous fund, to co-invest into small companies alongside sector specialists.

🎨 The Kiss: A 1904 cast of Auguste Rodin’s iconic sculpture signed by the artist is expected to fetch €500,000 at an auction next week in France.

While the crypto market has had a good week, following a tariff-induced downturn, no token in the top-100 by market cap had a higher rise in price than Onyxcoin, which saw its daily trading volume rise from $25 million to $600 million. The token is the native currency of the Onyx Protocol, a DeFI ecosystem built on the Ethereum blockchain. The imminent debut of its Onyx Smart Wallet, which provides users gas-free transactions, could be one reason for the rise in trading activity. Be cautious, though, as the coin saw a huge rise in price in January, which caused some to suspect market manipulation, and then fell by about 75% in value before this last week.