Stableton Navigator | Anthropic's AI Breakthrough, Revolut's Leap,

IT’S WEDNESDAY AGAIN
AI Breakthroughs, Fintech Ambitions, and Space Force Contracts

Welcome to this week’s edition. Let’s dive right into groundbreaking developments with Anthropic's Claude 3.5 Sonnet AI model. Discover the latest moves from fintech giant Revolut, and explore the intriguing dynamics of the U.S. Space Force's $5.6 billion launch contracts. Plus, get insights on young investors' bold diversification strategies and Shein's ambitious plans for a London IPO. 

THIS WEEK’S BREAKING NEWS
Introducing Claude 3.5 Sonnet

Anthropic's Claude 3.5 Sonnet, the company's most advanced AI model, boasts a 200K token context window, scalable to over a million tokens for high-demand scenarios. Anthropic emphasizes the model's "twofold improvement in accuracy" and responsible AI usage, highlighting efforts to mitigate biases and misinformation​. This makes Claude 3.5 Sonnet an optimal choice for enterprise-scale applications and complex tasks.¹

MARKET UPDATE
From OpenAI to Safe AI: Sutskever’s next chapter

Ilya Sutskever, former Chief Scientist at OpenAI, has launched Safe Superintelligence Inc. (SSI) with the mission of developing safe superintelligence. Partnering with former OpenAI researcher Daniel Levy and ex-Apple AI lead Daniel Gross, SSI aims to balance rapid AI advancement with robust safety measures, emphasizing a singular focus on creating secure AI systems without commercial distractions.²

Young investors diversify boldly

Survey reveals that 72% of younger investors (ages 21-43) believe traditional stocks and bonds alone can’t deliver above-average returns, compared to 28% of older investors. Consequently, younger investors allocate 31% of their portfolios to alternative investments and cryptocurrencies, contrasting with just 6% for older investors.³

Unicorns: Triumphs and trials

May 2024 saw seven new unicorns, with xAI leading at a $24 billion valuation, highlighting the AI and Web3 sectors' explosive growth. Noteworthy entrants include WEKA and Builder.ai. Despite these impressive additions, the market faced challenges, evidenced by underwhelming exits like Zeekr and Digit Insurance, which struggled to meet their initial valuations.⁴

PORTFOLIO & CO-INVESTMENT UPDATE
Gain 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.

Contact us today to express your interest and start receiving information about our latest offerings.

PORTFOLIO NEWS
Shein gears up for London IPO

Shein, valued over $60 billion, is preparing for a London IPO by expanding logistics and diversifying products. In 2023, profits hit $2 billion, surpassing H&M and Inditex. Gen Z app usage dropped slightly to 25% in the US and UK, stabilizing at 12% globally. Shein is reducing delivery times, targeting a shift from China-based shipping, and competing with Temu and Amazon.⁵

Revolut's $40B goal: A fintech power move

Revolut, backed by SoftBank, targets a valuation over $40 billion, up 20% from its 2021 valuation of $33 billion. Despite market challenges, it aims to sell $500 million in shares, including employee holdings. With 40 million customers globally and projected 2023 revenues of £1.7 billion, Revolut seeks to cement its position as Europe's top fintech.⁶

SpaceX competes for $5.6B U.S. space force deal

SpaceX has been selected to compete for the U.S. Space Force National Security Space Launch (NSSL) contracts valued at up to $5.6 billion for fiscal years 2025-2029, along with Blue Origin and United Launch Alliance (ULA). This competition will cover at least 30 launches aimed at deploying classified satellites for various U.S. agencies, enhancing national security.⁷

Claude 3.5 Sonnet: AI's new benchmark champion

Anthropic's Claude 3.5 Sonnet AI model, part of the Claude 3 family, significantly outperforms GPT-4 and Gemini 1.0 Ultra in various benchmarks. Claude 3.5 Sonnet scored 84.9% on HumanEval for coding ability, compared to GPT-4's 67% and Gemini's 74.4%. It also boasts a 200K token context window and vision capabilities, making it suitable for diverse applications.⁸

STABLETON NEWS
Tokenized pre-IPO access

Stableton has partnered with Geneva-based fintech Colb to tokenize growth equity and pre-IPO opportunities. This partnership gives investors exposure to a portfolio of over 20 trending private companies, including OpenAI, Discord and Kraken—all on-chain.

Colb's $USC stablecoin can be seamlessly exchanged for Tokenized Structured Products (TKSPs), providing easy blockchain-based access to these investments. This collaboration aims to democratize private market investing, offering institutional-class opportunities to a broader audience.

CHART OF THE WEEK
Maximized returns with IPO exits

In Q1 2024, IPO exits achieved a 19.7x EV/EBITDA multiple, significantly outperforming acquisitions and buyouts by 40%. This highlights the superior returns and lucrative potential of pre-IPO investments.

THE UNTOLD UNICORN STORY
Brex: The AI-powered spend platform

Launched in 2017, Brex offers financial services for startups and fast-growing businesses. Initially providing corporate credit cards, Brex solved the challenge startups face in securing funds from traditional banks. Using real-time data like cash balances and spending patterns instead of credit scores, Brex grants higher credit limits and immediate approvals to meet the needs of emerging businesses.⁹

Fun Fact: Dubugras and Franceschi found early success by founding and selling their first fintech company, Pagar.me, in Brazil. This payments platform, similar to Stripe, set the stage for their next venture. After selling Pagar.me, they moved to the U.S. to attend Stanford but soon dropped out to start Brex. Their success with Pagar.me paved the way for Brex's rapid rise in fintech. 

WEEKLY Q&A
What happens to Stableton’s funds and its investments, the AIF, in the case of a default by Stableton?

Stableton is an established and well-funded specialist investment firm. If Stableton were to cease operations, the AIF's activities would continue.

Stableton serves as the advisor to the AIF, which is managed by a CSSF-regulated Alternative Investment Fund Manager (AIFM) in Luxembourg. The AIFM would act in the best interest of AIF’s investors—even if Stableton could no longer fulfill its role as the advisor.

Furthermore, pursuant to the AIFM Directive on asset segregation, investors' assets are legally separated from both entities the advisor and the AIFM. This means that investor assets are always held segregated, ensuring there is no commingling of assets and no risk association between AIF’s assets, investors investments, Stableton, and the AIFM. Additional backup measures are in place to ensure continuity.

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

• Prestel & Partner Family Office Forum - London (July 2-3)

• Apero and Get Together - Milan (July 10)

• Private Markets Summit - Tel Aviv (July 16)

• IPEM - Paris (Sept 9-10)

• Prestel & Partner Family Office Forum - Wiesbaden (Sept 11-12)

• AIM Summit - Dubai (Oct 1-22)

• Europe Family Office Summit - Rome (Oct 24-25)

• AltsUK - London (Oct 26)

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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