Alternative Investing Report - May 20, 2025

*as of 5/19; Sources: S&P, BTC, FTSE, DJRE, CL50

The Senate voted yesterday to advance the GENIUS Act, a major piece of crypto-related legislation that would create a regulatory framework for stablecoins, the digital tokens pegged to the U.S. dollar. This comes two weeks after Democrats had blocked the bill due largely to concerns over President Trump’s recent crypto dealings. After bipartisan negotiations, the bill has moved forward and will receive a vote on the Senate floor, where it will likely pass.

➨ TAKEAWAY: The crypto market reacted favorably to the legislative news, with Bitcoin and the market as a whole up more than 3%. However, just because the Senate might pass the bill, it also needs to pass the House which has been dealing with its own separate stablecoin measure. The agreement comes as President Trump is preparing to host a dinner for the top 220 holders of his memecoin, many of whom appear to be foreign nationals, eliciting corruption and national security concerns.

In this conversation, Vincent founder Slava Rubin and Sacra founder Jan-Erik Asplund discuss the rise of Anduril, the defense techn startup that has disrupted traditional defense contracting with innovative products and a unique business model. The discussion also covers Anduril's revenue growth, the opportunities and risks it faces in the global market, and its IPO prospects.

The number of seed-stage funding rounds in Q1 dropped by 28% year-over-year, and 46% of those rounds were bridge rounds, which are rounds that startups raise to “bridge” the gap between major funding rounds. As a result, the total value of seed-stage rounds fell by 37%, even as the median valuation of seed stage startups increased.

➨ TAKEAWAY: The data points to an ecosystem where startups are stalling out at the seed stage, with the number of total Series A raises falling a whopping 79% since 2022. Even companies that make it to the Series A are having trouble sustaining their momentum, as the median time between Series A and Series B raises hit an all-time high of nearly three years. With VC dollars going increasingly to late-stage megarounds, it is a tough environment for early stage startups.

🎨 Top artists to watch: Art in America magazine named its 20 “New Talent” artists from around the globe, with full profiles of each artist to follow. These could be the next artists to hit it big at auction, and investors and collectors should keep track of them moving forward.

🏡 Luxury sustainability: New luxury developments across the country are prioritizing sustainability as buyers are proving that they will pay for environmentally-friendly perks and common spaces.

📉 Klarna’s losses double: The fintech startup that could possibly IPO this year reported a net loss of $99 million in Q1, more than double the number from 2024, as significantly more of its customers are failing to repay their “buy now, pay later” loans.

🏀 Mark Cuban’s new fund: The former Dallas Mavericks owner (who still owns a minority stake) is launching a $750 million private equity fund to invest into sports teams, targeting 1%-5% stakes in as many as 92 franchises.

🚀 Cyera fundraise: The data security startup is raising a $500 million round at a $6 billion valuation, nearly double its last valuation of $3.4 billion in November, as the cybersecurity sector stays hot.

⚾ Ken Griffey Jr. record: A 1998 Skybox E-X Essential Credentials Now card, numbered 4 of 10 and graded PSA 9 sold for $280,600, setting a new record for any Griffey Jr. card in its first appearance at an auction in twenty years.

The new Pope Leo XIV, the first American-born pope in history, grew up outside Chicago, and now, his childhood home is on the market. Located in the southern suburb of Dolton, IL, the 3-bedroom 1,050 square foot home was last sold for $66,000 a year ago. Now, though, the owner is trying to take advantage of the notoriety and has listed it for auction with a reserve price of $250,000.