Alternative Investing Report - June 27, 2025

*as of 6/26; Sources: S&P, BTC, FTSE, DJRE, 30YM

The blockchain prediction market Polymarket is reportedly raising a $200 million funding round that would value the company at $1 billion. The site, which allows its users to bet on a wide variety of scenarios, came to prominence during last November’s elections, when trading volume topped $2.5 billion. It currently boasts more than 1 million users and a partnership with the social media platform X (formerly Twitter). Meanwhile, its competitor - online betting startup Kalshi - is raising a $185 million funding round at a $2 billion valuation.

➨ TAKEAWAY: Polymarket is currently banned in the U.S. and several other countries, and restricted in many more, so there is huge upside if it becomes legal here and worldwide. Kalshi is legal in the U.S. but is facing a number of lawsuits from states and regulators. Both companies offer sports betting with lower fees than public companies such as DraftKings and FanDuel. They could capture significant market share as consumers get more comfortable with online prediction markets.

Four private market product innovators talk about how investors can build yield-generating portfolios. They discuss the volatile investment landscape, the importance of cash flow in portfolios, and the various options available to investors. A must watch for anyone looking to build up investment cash flow.

A lawsuit brought by 13 authors against Meta accusing the company of copyright infringement when training its AI models was dismissed by a federal judge on Wednesday. He found the company’s use of copyrighted books fell under the “fair use” doctrine, that Meta’s use did not harm the market for the books and thus the authors had no damages. Earlier this week, AI startup Anthropic won a similar class-action lawsuit brought by authors, though it may still be on the hook for allegedly pirating millions of books to train models.

➨ TAKEAWAY: One of the biggest potential downsides for AI startups is their exposure to this type of litigation, so these wins are crucial. A few victories doesn’t mean they are completely in the clear, as the decisions could be appealed and there are several major pending lawsuits involving other types of media.

📜 13th Amendment sale: A manuscript of the 13th amendment signed by Abraham Lincoln and vice-president Hannibal Hamlin, along with 37 senators and 114 representatives, sold for $13.7 million at Sotheby’s, above the high estimate. Separately, a copy of the Emancipation Proclamation signed by Lincoln sold for $4.4 million.

🪙 Tokenized SpaceX: The investment platform Republic is offering its users the ability to buy tokens representing shares of the Elon Musk-led startup SpaceX. The minimum investment is $50 while the maximum is $5,000, and the company expects to expand this offering to companies such as OpenAI and Stripe.

🎨 Design market report: Across the three major auction houses, design auctions generated 62% more this year than last year, as demand for items such as furniture, lamps, and Tiffany windows has increased.

🏡 Pending home sales increase: In a bit of a surprise, pending U.S. home sales rose 1.8% in May and were up 1.1% year-over-year, with the West seeing the highest monthly gain.

🚀 Lime pursuing IPO: The electric bike and scooter startup backed by Uber has reportedly hired investment banks to help prepare for a public offering next year.

🏢 Office opportunities: Distressed office properties, particularly in New York, Los Angeles, San Francisco, and Chicago, could present buying opportunities as loans start to mature and owners cannot afford to refinance.

Monday: ❗Iran situation, 🚀 VC Performance
Tuesday: 🤖 AI fundraises, 🏈 Fanatics Fest recap
Wednesday: 📈 Alts and younger generations, 🏡 Housing Prices
Thursday: 🚀 VC Outlook, 🏀 Sotheby’s Sports auction

Have a great weekend!