This Week in Alternative Investments - July 21st, 2023

Author

Adam Katz
July 21, 2023

Venture capital funding for Web3 startups has fallen by 76% since last year (source: Crunchbase)

Headlines

Bite sized market updates

Venture capital funding for Web3 startups has fallen by 76% since last year. Despite this downturn, Coinfund raised over $150 million and Polychain Capital raised $200 million for their respective new funds.

A first generation iPhone sold for a record price at auction. The rare 4 GB model originally retailed for $499 and fetched over $190,000.

The number of existing-home sales fell again in June. Low supply led to a 3.3% drop from May and a 18.9% drop compared to June 2022, reaching the lowest level since 2009.

Christie’s and Gucci are collaborating on a digital art auction. “Future Frequencies: Explorations in Generative Art and Fashion” includes several pieces expected to fetch six figures.

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Market Updates

Two crypto venture firms raised over a combined $350 million for new funds. This is despite a recent Crunchbase report that showed a 76% drop in Web3 VC funding in the last year. Coinfund raised $158 million for its fourth seed-stage fund, exceeding their goal of $125 million. Meanwhile, Polychain Capital raised $200 million for its fund but also announced three layoffs from its research team.

A rare sealed 4 GB original iPhone sold for $190,373 at auction. The 2007 model sold for 380 times its original retail price of $499. At the same auction, the more common 8 GB model sold for $53,725, just below its record price of $63,356 set in February.

Sales of existing homes fell to their lowest level since 2009. According to a report from the National Association of Realtors, the number of sales dropped by 3.3% compared to May and 18.9% compared to this time last year. A large reason why is the continuing lack of supply - only 1.08 million homes are for sale, a 13.6% drop from last year, and about half of what would be expected in a balanced market.

Christie’s is continuing to showcase NFTs. Despite the downturn in the digital art market, the famed auction house has partnered with Gucci on an auction ending this week. Entitled, “Future Frequencies: Explorations in Generative Art and Fashion”, it showcases generative AI art and includes a piece by digital artist Robbie Barrat that is estimated to sell for over $500,000.

See disclosures at masterworks.com/cd