_{*as of market close Aug 9, Bitcoin as of Aug 11}

Startups aim to increase their valuation at every fundraise, but 2024 has seen a decade-high in flat rounds - where the value stays the same - and down rounds - which reduce a company’s price from the prior valuation. Flat rounds have comprised 12.7% of VC deals in 2024, compared to just 3.8% in 2021. Down rounds have made up 15.7% of 2024, compared with 7.6% in 2021. There is still a lot of room to fall, however, as down rounds hit 36% in the aftermath of the 2008 financial crisis. And with AI companies taking up the majority of attention, other sectors could struggle, like Adtech, which is on pace for a 80% drop in funding since 2021 and its slowest year in a decade.

➨ TAKEAWAY: Many companies have put off raising new capital to avoid the dreaded down round, but as their runway decreases, they have been forced to raise new money at lowered valuations. With VC firms now looking for companies on a pathway toward profitability rather than prioritizing raw growth, expect down rounds to increase, especially for companies whose last valuation came during the pandemic-induced highs of 2021.

The mostly-defunct fractional investment platform Collectable is under scrutiny as many of its items are still being advertised for investment at a gallery storefront in Manhattan. After struggling to generate revenue, and with the majority of its items losing value, Collectable was sold last year for $1.35 million and trading on the platform stopped in April. Both investors who bought shares in items on the platform and consignors, who sold shares of their items, are concerned about what will ultimately happen with the remaining items in Collectable’s custody.

➨ TAKEAWAY: Fractional collectibles platforms rose in popularity during the early days of the pandemic but have struggled since, and investors have learned that they have no say in how or when items they own shares in are sold. Liquidity was always an issue during Collectable’s initial run, and now shareholders are stuck in limbo.

Sports clubs have been among the best performing assets over the past few decades. In the past two decades every major US sports team has seen its value 2x or more. On August 15 at 2 PM ET, join our sports business panel with Slava Rubin of Vincent, Andrew Durgee of Republic and Stuart Goldfarb of SKI Partners as they take a look at the pros and cons of getting involved in the asset class.

🪙 FTX to pay $12.7 billion: The bankrupt crypto exchange was ordered by the Commodity Futures Trading Commission to pay restitution to its customers, who are receiving a 100% recovery of their funds as of the time of its bankruptcy. However, crypto prices are up significantly since then, so customers are being short-changed and can vote against the bankruptcy proposal before August 16.

🏡 Mortgage rates are down: The average 30-year fixed mortgage rate fell to 6.47%, a big drop from the 6.73% mark last week and the 6.96% average from a year ago. Anticipated Fed rate cuts starting in September could knock mortgage rates even lower and jumpstart the flagging housing market.

📉 AI pins not selling: Humane’s flagship product has sold only 10,000 units versus its goal of 100,000, and 3,000 have already been returned as returns are outpacing sales.

🏡 Housing market nears $50T: The total value of U.S. homes hit a record $49.6T, rising by 6.6% year over year, and has more than doubled since 2014.

💵 Higher private credit margins?: Major lenders have been charging lower rates in an effort to gain market share, but some firms are reconsidering their price cuts after a volatile week in the markets and with the prospect of lower interest rates later this year cutting into returns.

🎨 Abu Dhabi x Sotheby’s: Emirati sovereign wealth fund ADQ is acquiring a minority stake in Sotheby’s for $1 billion, as the auction house tries to weather the contraction in the art market.

🚀 Venture for America shutters: The Andrew Yang-founded nonprofit that placed college graduates with startups shut down operations as fundraising dried up in the midst of the VC funding downturn.

🪙 SEC eyeing crypto VC firms: Three undisclosed crypto venture firms have reportedly received subpoenas from the SEC asking for contracts of token deals with investors, as the agency investigates whether the funds are illegally participating in the sale of unregistered securities.

Monday: Monterey Car week continues through Sunday - look out for the ten most expensive cars up for auction there.

Wednesday: July Consumer Price Index release.

Thursday: Heritage’s ANA World and Ancient Coins Signature auction, featuring a Nobel Prize. July retail sales data release.

Friday: July housing starts & building permits and consumer sentiment.

Saturday: The Goldin 100 Part 2 auction, full of high-end memorabilia and collectibles.