Alternative Investing Report - September 30, 2024

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After a down couple of years, VC funding for biotech startups is rebounding, with 68 rounds topping $100 million through August 31 of this year, which is on a similar pace to the record of 106 posted in 2021. Meanwhile, Arch Venture Partners announced its 13th fund, a $3 billion fund focused on early-stage biotech companies, just weeks after Bain Capital Life Sciences announced its own $3 billion biotech fund.

➨ TAKEAWAY: While the total deal count and funding amount for the sector is not quite up to 2021’s pace, it has increased compared to the past two years. The emphasis on larger funding rounds is also showing a flight to quality, as VC firms are focusing on the strongest prospects. While AI has sucked up most of the oxygen in the VC ecosystem this year, it is always important to remember that other industries have promising innovation that offers investment possibilities as well.

How are private markets going to fare with the upcoming election? Join CEO of SkyBridge Capital - and former White House communications director - Anthony Scaramucci along with Vincent co-founder Slava Rubin today at 1 PM ET, as they deliver fresh analysis of the upcoming election and what you need to know as an investor. You won’t want to miss it!

Three more notable art auctions took place over the weekend, starting with Sotheby’s Contemporary auction, which was curated by sports superagent and LeBron James’ business partner Rich Paul. The auction saw $20.5 million worth of sales, in line with pre-sale estimates of $17.5 - $25 million, though 15 of the 122 lots failed to sell. Christie’s Hong Kong 20th Century Day Sale brought in $12.2 million against an estimate of $10.4 million - $15.9 million and saw 43 of its 51 lots sell. Its 21st Century Day Sale was more successful, bringing in $16.1 million against an estimate of $10.5 million - $16.8 million, with 42 of the 44 lots selling.

➨ TAKEAWAY: Overall, the auction results were solid, but unspectacular as they met estimates and saw sell-through rates higher than what auction houses have experienced over the past couple of years. More significant data will be coming with the London auctions in October and New York auctions in November, and those sales will give a clearer picture on where the art market stands.

💵 Private credit report: The amount invested by individuals in private credit funds has grown by 40% year-over-year, as the estimated return through the first half of 2024 was between 4.4%-5%, above the 20-year average, but tracking below last year’s 13.3% mark.

🏡 Homebuyer demand up: As mortgage rates fall, homebuyers locked in 68% more mortgages than a month earlier, and other indicators of demand, such as purchase applications and touring activity, are also on the rise.

⚾ Ohtani ball lawsuit: The fight over the Dodgers superstar’s 50th home run ball is going to the courtroom, as one fan is claiming he had the ball first and the current owner took it from his hands. The auction is ongoing, and the ball has been bid up to more than $1.4 million, but an October 10th hearing will determine its fate.

🪙 Moo Deng crypto: The Thai baby hippo who has gone viral on social media is the subject of a meme coin that has grown in value by 1,400% since it was launched last week - but consider that meme coins are essentially pure gambling before buying any, no matter how cute the subject is.

🚀 Biggest rounds of the week: There were two funding rounds of $100 million or more last week, led by insurer Zing Health’s $140 million raise and software platform Whatfix’s $125 million round, which came at a valuation 50% higher than its last round in 2021.

🏡 Affordable new homes: Talladega, AL, leads the way for the most affordable new construction homes in the U.S., joined by six other Southern cities in the top 10.

Tuesday: Q4 kicks off with the Vice-Presidential debate between J.D. Vance and Tim Walz; Christie’s Post-War to Present auction, featuring million-dollar works by Gerhard Richter, Ed Ruscha, and Alex Katz.

Wednesday: Rosh Hashanah begins at sundown.

Thursday: Sotheby’s Handbag and Accessories auction in Hong Kong, featuring a number of six-figure Hermes bags.

Friday: U.S. jobs reports are released; Heritage’s Fall Sports Catalog Auction, featuring a complete 1968 Topps baseball set, with an estimated value of $1.2 million.