Alternative Investing Report - May 15, 2025

*as of 5/14; Sources: S&P, BTC, FTSE, DJRE, CL50

Stock and crypto trading platform eToro went public on Nasdaq yesterday, and saw its shares jump 29% in its first day of trading. The company had already priced its IPO at $52 per share, above the expected range of $46 - $50, and raised over $300 million in the offering. This week saw several other companies move forward with IPOs, starting off with the digital health startup Hinge Health looking to raise up to$437 million in its IPO, which could come as soon as this week. Mobile banking startup Chime filed for a public offering on the Nasdaq. Finally, Design software startup Figma hired Morgan Stanley to lead its previously announced IPO, which could be one of the year’s biggest.

➨ TAKEAWAY: After a lot of hope that the IPO window would crack open in 2025, the year has only shown a modest 11% increase in IPO activity compared to 2024, and many private companies are opting for other ways to achieve liquidity. However, the increased activity this week could mark a turning point, as investors indicated their appetite for IPOs with eToro’s successful launch. If Hinge Health, Chime, and Figma, which represent a diverse range of industries, also see successful offerings, it could open the door for other notable startups to explore going public.

According to Zillow, the median asking rent in the U.S. was up 0.5% in April and is up 3.4% year-over-year. For 0-2 bedroom properties, Realtor.com showed a 0.3% monthly gain and a 1.7% decline year-over-year, significantly lower than the Zillow numbers. Part of the reason for the discrepancy is that Zillow includes single-family rentals, which have performed slightly better - a 4% year-over-year gain - than apartments.

➨ TAKEAWAY: Either way, the numbers reflect a slowing or declining rental market, as more apartment supply has been coming on the market nationally. As a result, the rental vacancy rate rose to its highest level since 2018, and landlords have had to lower rents in some markets to entice renters. Slowing rent growth and high mortgage rates is likely to lead to lower prices in the multifamily market, which could open up opportunities for long-term investors.

🎨 New auction record: Marlene Dumas’ 1997 painting “Miss January” sold for $13.6 million last night at Christie’s, setting a new record for any living female artist.

🪙 Crypto VC funding rises: Thanks in large part to crypto exchange Binance’s $2 billion raise, funding for crypto startups more than doubled in Q1.

🏡 Affordable short-term markets: Lancaster, PA ranks as the top short-term rental market with a median home price of less than $500,000, followed by Panama City Beach, FL, and Logan, OH.

🚀 Addepar funding round: The wealthtech startup raised $320 million at a valuation of $3.25 billion, nearly 50% higher than its last public valuation in 2021.

🏢 Retail slowdown: Major bankruptcies of chains such as Big Lots and Party City were one reason that retailers closed 1,300 more stores than they opened in 2024, stalling the positive momentum of the post-pandemic comeback.

🏀 Cooper Flagg card market: The presumed #1 pick in the upcoming NBA draft has seen his card values rise above many established NBA All-Stars and Hall of Famers as collectors bet on potential rather than actual production.

Could AI be partially responsible for the surprising election of Pope Leo XIV, the first ever American-born leader of the Roman Catholic Church? In his first formal Vatican address, Pope Leo named AI as one of the biggest challenges facing humanity, and explained how his chosen papal name was inspired by the rise of AI. He is following in the footsteps of Pope Francis, who expressed concerns about the threats to humanity that AI poses. His commitment to continuing Francis’ policies and his American background could have given Leo the leg up in the conclave.