Alternative Investing Report - June 24, 2025

*as of 6/23; Sources: S&P, BTC, FTSE, DJRE, CL50

The AI startup Thinking Machines Lab, founded by former OpenAI CTO Mira Murati, raised $2 billion in what could be the biggest seed round of all time by a large margin. The company is now valued at $10 billion despite being pre-revenue and not having a known product. Elsewhere, the legal AI startup Harvey AI raised a $300 million Series E at a $5 billion valuation, just four months after being valued at $3 billion. The company’s revenue has grown by 50% in that time period.

➨ TAKEAWAY: AI continues to dominate the startup fundraising world, and the valuation for Thinking Machines shows how much demand there is to invest in the sector, and having the OpenAI pedigree doesn’t hurt. Valuations for more established startups are skyrocketing, with many doubling in a manner of months. While it certainly seems like a bubble, it is worth remembering that AI is still a nascent industry and the bubble is not likely to burst anytime soon.

Fanatics Fest wrapped up over the weekend as 125,000 people attended the sports and collectibles conference in New York City, a huge jump over the 70,000 who attended last year. Superstar athletes such as LeBron James, Tom Brady and Derek Jeter, and celebrities like Jay-Z, Kevin Costner and John Cena helped make Fanatics Fest feel like a marquee event. On the collectibles side, the card and memorabilia show got better reviews than last year, and is quickly growing into one of the industry’s biggest.

➨ TAKEAWAY: For an event in its second year, Fanatics Fest has already become a cultural sensation, with a ton of media coverage and social media exposure. It certainly didn’t hurt that NBA superstar Kevin Durant found out he had been traded while speaking at a panel at the event. Next year’s event is likely to be even bigger, which will only raise demand for sports collectibles.

🪙 Crypto prices rebound: Bitcoin prices were up nearly 4% and other major coins such as Ethereum, Ripple, and Solana rose by around 7%, as the conflict with Iran has not escalated as of yet. Any further developments could certainly inject new volatility into the market, however.

🏡 Existing home sales increase: Existing home sales in the U.S. rose by 0.8% in May, though unsold inventory rose quicker at 6.2%, and sales are actually down 0.7% year-over-year. The Northeast saw the biggest monthly gain at 4.2% while the West saw a 5.4% decrease.

🚀 Medtech funding up: Medtech startups raised $4.1 billion in VC funding in Q1, the highest quarterly total since 2022, and PE deal flow is well ahead of 2024’s pace.

🏢 Office rents rise: The average listed rent for office buildings is up 4.8% year-over-year despite the national vacancy rate hitting 19.4% in May, a rise of 160 basis points.

💵 Institutional investors still eye private credit: More than half of North American institutional investors surveyed rated private credit as their number one asset class within private markets to invest in within the next 12 months.

🚀 TikTok ban deadline extended: President Trump signed an executive order to give the social media platform’s owner ByteDance another 90 days to sell the app to avoid a U.S. ban that looks less likely to take place with every passing day.

A Boston penthouse has hit the market with an asking price of $49.5 million, making it the most expensive listing in Massachusetts. The 10,600 square-foot, 6-bed, 8.5-bath apartment is on the top two floors of the St. Regis Residences on the Boston Seaport, and has panoramic views of Boston Harbor and the city skyline. The property has a full bar, infinity pool, wine storage room, and a “floating” marble staircase. If you can afford the nearly $50 million price tag, the $23,000 monthly HOA fees probably won’t be too big a concern.