Stableton Navigator | Databricks' Major Acquisition & SpaceX's Historic Test Flight
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Welcome to this week's edition of the Stableton Navigator. Databricks is making headlines with its $1 billion acquisition of Tabular, a data optimization startup, to bolster its cloud data management. SpaceX successfully completes its first test flight of the Starship rocket, reaching new heights in space exploration. Discord unveils new monetization features to support developers, enhancing their ability to build successful businesses on the platform. Stay tuned for more key updates and insights.
Highlight of the Week
Databricks is acquiring data optimization startup Tabular for over $1 billion, aiming to enhance its cloud data management capabilities. This acquisition strengthens Databricks’ position against competitors like Snowflake, which was also interested in Tabular. Known for its use of the Apache Iceberg format, Tabular will help optimize data storage and processing. This strategic move underscores Databricks’ commitment to leveraging open-source technologies and expanding its market presence amid strong revenue growth.
Market Update
Despite high interest rates, private equity remains a strong investment option. According to Rich Powers from Vanguard, most returns in private equity now stem from operational improvements and valuation expansion rather than leverage. Diversified, long-term investment strategies are crucial for navigating market complexities. Investors with a high tolerance for risk and a long-term perspective can still achieve meaningful portfolio growth. This resilience underscores the enduring value of private equity in today’s economic landscape.(1)
According to the U.S. Bank, technology stocks outperform due to AI advancements. The S&P 500 Communication Services and Information Technology indices rose 20.05% and 17.71% this year. Tech and communication stocks now make up over 38% of the S&P 500, crucial for market growth. Despite high valuations, ongoing demand for AI and cloud computing supports long-term potential. A strong public tech market boosts investor confidence and funding for private tech firms, driving innovation and growth.(2)
Carta's "State of Private Markets: Q1 2024" report shows resilience and growth in private markets, with investments rising to $16.3 billion. Valuations remained stable or increased, reflecting investor confidence. Series C saw a 130% surge in capital raised. California led the West region, capturing 62% of total venture capital, the highest since 2019. This stability and regional strength offer attractive opportunities for private equity investors to strategically position themselves in a market returning to pre-pandemic robustness.(3)
Portfolio and Co-Investment Update
Interested in gaining early access to the next generation of industry-leading private companies? Stableton's co-investment program and our portfolio products offer unique opportunities to invest in the most promising businesses before they go public.
To learn more and stay informed about our latest offerings, contact us here to express your interest.
Portfolio News
 | Kraken is planning a pre-IPO funding round to raise over $100 million, sparked by renewed investor interest amid a crypto market rally. With cryptocurrencies nearing all-time highs and a favorable shift in U.S. regulatory stance, Kraken aims to complete this round by year-end. The company is also seeking a prominent firm to join its board, preparing for a potential IPO next year. This move underscores Kraken’s commitment to accelerating global crypto adoption and ensuring robust cybersecurity.(4) |
| Discord has launched new monetization features to support developers in the US, UK, and EU. Key updates include reducing the platform fee from 30% to 15% for the first $1M in sales, introducing a new store surface for apps, and offering one-time purchase options for durable and consumable items. Additionally, enhanced analytics tools are now available to help developers better understand user behavior and optimize their offerings. These changes aim to help developers build successful businesses on the platform.(5) |
 | Databricks is acquiring data optimization startup Tabular for over $1 billion, aiming to enhance its cloud data management capabilities. This acquisition positions Databricks to better compete with Snowflake, which was also interested in buying Tabular. Tabular, known for its use of the Apache Iceberg format, will help Databricks optimize data storage and processing. This move underscores Databricks' strategy to leverage open-source technologies and expand its market presence amid strong revenue growth.(6) |
 | SpaceX's Starship rocket successfully completed its first test flight on June 6, 2024. It reached 130 miles altitude at over 16,000 mph before splashing down in the Indian Ocean. CEO Elon Musk celebrated the intact return despite some damage. This follows three failed tests and NASA's delay of its lunar landing to 2026 due to issues with Boeing’s Starliner. SpaceX continues its achievements, having launched over 50 astronauts and the Starlink satellite network.(7) |
Stableton News
We are excited to announce that Stableton has onboarded to Swiss Fund Data, a leading provider of fund information in collaboration with SIX. This partnership allows investors to track the NAV of our portfolio offerings, including all share classes and the Index AMC, through a clean and efficient platform.
You can check out our Swiss Fund Data profile here.
Chart of the Week
With high liquidation preferences steady at 8% in Q1 2024, investor confidence remains strong. Private markets continue to offer robust investment opportunities.
The Untold Unicorn Story
Discord has been a popular communication platform since 2015. It is a favorite not just among gamers, but also in online communities worldwide. It has transformed online connections. Its features, including voice, video, and text chat, bring together millions with shared interests. Moreover, Discord is known for its simple and strong design. It supports everything from casual chats to big community interactions.
Fun fact: Discord initially started as part of a different project. It was a mobile MOBA game called "Fates Forever" by Jason Citron's company, Hammer & Chisel. The game did not succeed. So, Citron pivoted the company's focus to one of the game's standout features - its built-in voice chat. This pivot saved the company. It also revolutionized gamer communication. It did this by focusing on what was already effective.
Q&A and Learning
What happens after an IPO? Would the typical strong IPO gain diminish until the end of the lock-up?
Upon listing, the fund may have to continue to hold shares for typically 3-6 months after the IPO before selling them in the public market. This time frame could be different, if the company listed using a direct listing or SPAC.
There is a public misconception about post-IPO performance. While the performance is lower than the market on average for the time, it is still positive based on our data analysis using Morningstar. In fact, the former constituents of the Morningstar® PitchBook® Unicorn Select 20 Index™ showed a mean return of 2.2% during the first 180 days after listing. (Analysis as of January 2024).
Where to Meet Us
Reach out if you would like to meet
Hightech Gründerfonds Berlin Family Day - Berlin (June 11-12)
Hinterland of Things - Bielefeld (June 13)
FundForum - Monaco (June 24-26)
Prestel & Partner London Family Office Forum - London (July 2-3)
Apero and get together - Milan, Italy (July 10)
Israel Private Markets Summit - Tel Aviv (July 16)
IPEM - Paris (September 9-10)
Prestel & Partner Family Office Forum Germany - Wiesbaden (September 11-12)
AIM Summit - Dubai (October 21-22)
Europe Family Office Summit - Rome (October 24-25)
AltsUK - London (October 26)
And, of course, we are always happy to meet you at our main offices in Zurich, Switzerland!
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