JPMorgan’s $12B AI Move, SpaceX’s NASA Rescue, Ripple’s $125M Win

IT’S WEDNESDAY AGAIN

This week in the Navigator, we explore JPMorgan’s bold AI-driven initiatives, Ripple’s surprising legal victory, and key insights into where venture capital is flowing even in challenging times, alongside SpaceX’s continued dominance in the space industry.

THIS WEEK’S BREAKING NEWS
ChatGPT at JPMorgan: $12B investment in AI-driven efficiency

JPMorgan Chase is revolutionizing the financial industry by deploying a groundbreaking AI assistant built on OpenAI’s ChatGPT. This cutting-edge tool is set to redefine internal operations, automating complex tasks like document summarization and data analysis, freeing up employees for strategic initiatives. With an impressive $12 billion annual technology investment, JPMorgan is not just embracing AI; it’s leading the charge in transforming the future of finance.¹

MARKET UPDATE
Investors bet big on AI and fintech in July’s downturn

In July 2024, global venture funding totaled $22 billion, marking a 28% decrease from the previous year. Despite this downturn, AI and fintech sectors remained robust, with AI startups securing $5.3 billion and fintechs attracting $3.8 billion in funding. These sectors continue to draw investor confidence, reflecting their critical role in driving future innovation.²

Revolut backer Balderton Capital raises $1.3B for European tech startups

Balderton Capital raised $1.3 billion in 2024, marking Europe’s largest venture funding round focused on startups. The raise includes a $615 million early-stage fund and a $685 million growth fund. Despite European AI startups securing only $3 billion in generative AI funding compared to $54 billion in the U.S., Balderton remains focused on AI applications within Europe’s tech ecosystem.³

PORTFOLIO & CO-INVESTMENT UPDATE
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PORTFOLIO NEWS
OpenAI invests $60M in Opal: Redefining AI-powered devices

In a surprising move, OpenAI is leading a $60 million Series B funding round for Opal, a hardware startup known for its high-end webcams. This unexpected investment underscores OpenAI’s growing interest in AI-powered physical devices, following the recent revival of its robotics team, which had been disbanded four years ago. OpenAI’s strategic push into hardware signals a bold new direction in AI innovation.⁴

OpenAI co-founder joins Anthropic

John Schulman, co-founder of OpenAI and a key figure behind ChatGPT’s development, is joining rival AI firm Anthropic to lead its AI safety initiatives. This marks a pivotal shift in the AI landscape, with Schulman’s departure highlighting the growing competition between leading AI companies.⁵

SpaceX to the rescue after Boeing’s blunder

NASA’s astronauts are stranded as Boeing’s Starliner faces ongoing delays, but there’s hope on the horizon with SpaceX’s Crew Dragon, which is nearly ready for launch. While Boeing struggles with persistent technical issues, SpaceX continues to prove its reliability, positioning itself as NASA’s go-to partner for critical space missions.⁶

XRP’s $125M Penalty: A win in disguise

Ripple scored a significant win in its legal battle with the SEC as Judge Torres imposed a $125 million penalty, far below the $2 billion originally sought by the SEC. This ruling, coupled with XRP's 20% price surge, highlights Ripple's resilience. Despite this victory, the looming appeal and ongoing regulatory uncertainties remind the market that the legal landscape for crypto remains unsettled.⁷

CHART OF THE WEEK
Acquisition fever: Startup M&A is heating up

This chart showcases the resilience and potential of startup M&A activity, even amid economic fluctuations. The steady rise in acquisitions from Q4 to Q1 signals robust investor interest and confidence in startup potential. For private market investors, this indicates a favorable environment for capturing high-value acquisitions and solid returns..

THE UNTOLD UNICORN STORY
GoPuff: Delivering essentials in minutes

goPuff transforms the convenience store experience by delivering everyday essentials straight to your door. From snacks and drinks to household items and over-the-counter medications, they have it all. Their mission is simple: save you time and hassle by providing fast, reliable delivery. Using a network of local warehouses, goPuff ensures your order arrives quickly, often within minutes. By making convenience truly convenient, goPuff changes the way you shop for essentials. With goPuff, you can get what you need, when you need it, without ever leaving your home.

Fun Fact: goPuff was born out of college dorm rooms at Drexel University. They saw a need for late-night snack and essential item deliveries on campus, so they started delivering from their own car. This humble beginning quickly grew into a nationwide delivery service with a vast network of local ware.⁹

WEEKLY Q&A
How have the top 20 unicorns' prices performed based on their valuation model, and what market developments does Stableton observe?

The Morningstar Index offers a nearly 10-year performance perspective, calculated using an objective methodology based on actual primary funding data. Adjustments for public and private market peer group development serve as a broader market proxy. However, mark-to-model pricing may not reflect short-term individual positions on the secondary market. Recent secondary market pricing and trades for the unicorn strategy suggest we can enter at significantly better prices, with most constituents trending upwards over the past three months.

EVENTS
Will you be around? Let us know so we can say hello!

• Future Tech Fest - Dusseldorf (August 22)

• Private Equity UK Summit - London (September 4)

• Baltic VC Summit - Vilnius (September 5-6)

• IPEM - Paris (September 9-10)

And, of course, we’re always happy to have you over at our main office in Zurich, Switzerland.

WHAT’S NEXT
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