Alternative Investing Report - April 22, 2025

*as of 4/21; Sources: S&P, BTC, FTSE, DJRE, CL50

The real-world asset (RWA) tokenization platform Blocksquare is partnering with Vera Capital, a Florida-based real estate firm, with the aim of offering fractional ownership in more than $1 billion worth of commercial real estate. A new marketplace will launch in the next few weeks allowing investors to buy tokenized shares in dozens of properties across seven U.S. states, including a 3-story office building and retail plaza located in Florida. The $1 billion number is the eventual goal, and future properties to be tokenized include two complexes worth between $70 million and $100 million.

➨ TAKEAWAY: Thus far, Blocksquare has been used to tokenize more than $145 million worth of property across 28 countries, so this deal will dramatically increase options for investors. Tokenization can allow greater access to real estate at much lower price points for everyday investors, and could increase liquidity with potential around-the-clock trading. Expect more deals like this to start coming, but always do your research on the underlying properties - just because you can easily invest in them doesn’t always mean you should.

Digital health startups raised $5.3 billion in Q1, a 47% quarterly jump and a 13% year-over-year rise. AI-related companies captured 60% of that funding, and represented 5 of the 11 rounds that exceeded $100 million. The biggest raise was by Google’s AI drug discovery platform Isomorphic Labs, which hauled in $600 million. The quarter also saw six new unicorns, the most in three years, and multiple billion-dollar acquisitions - including Roper Technologies‘ $1.6 billion purchase of software provider CentralReach, and Paulus Holdings’ $1.5 billion purchase of digital pharmacy platform Alto Pharmacy.

➨ TAKEAWAY: While funding was up, deal counts actually fell, with early-stage deal count largely responsible for the decline. VC investors are making bigger bets on later-stage companies that are closer to market breakthroughs. AI has also become the dominant story in healthcare, as it has in many pre-IPO sectors.

📉 Markets stumble: The S&P 500, the Dow Jones Industrial Average, and the Nasdaq Composite all fell by more than 2% yesterday, partially in response to President Trump’s conflict with Fed chair Jerome Powell. The U.S. dollar index also hit a 3-year low, as global investors seem to be exiting U.S. assets across the board.

💵 Rating private credit: Moody’s is teaming up with MSCI to provide risk assessments for private credit loans, and is hoping to launch the platform later this year in an effort to bring transparency to the asset class.

🏡 Mortgage rates rise: The average rate for a 30-year fixed mortgage rose about 20 basis points to 6.83%, the biggest one-week increase in a year.

🪙 Charles Schwab eyes crypto trading: The investment manager has seen a 400% uptick in traffic to its crypto site, and is planning to offer spot trading within the next 12 months.

🏢 Return to office: 97.5% of Fortune 200 companies are now implementing some sort of return-to-office policy, with most requiring at least three days a week, with New York and Miami benefiting the most from the new mandates.

🎨 Magritte drawing: A drawing by the Belgian master that was recently bought on eBay for $1,580 is now being auctioned with an estimate of $100,000 - $150,000.

Price Tower, a 19-story office building in Bartlesville, OK, 47 miles north of Tulsa, is coming to auction. What makes it notable is that it is the only skyscraper ever built that was designed by the legendary architect Frank Lloyd Wright, and it is filled with Wright-designed furniture. The vacant property has been tied up in bankruptcy court and was supposed to be auctioned last October, but the sale was delayed. Qualified bidders must submit an offer by April 28 - the minimum bid is $1.54 million - and if there are multiple bidders, there will be an auction on Tuesday, May 6.