Stableton Navigator | Apple joins OpenAI, Revolut CEO’s AI Fund, BlackRock acquires Preqin

IT’S WEDNESDAY AGAIN

Welcome to this week's edition of the Stableton Navigator. Dive into Revolut CEO’s $200M AI-driven VC fund, explore how the UK has overtaken China in tech funding, and analyze BlackRock's acquisition of Preqin. Keep scrolling to read through updates on our co-investment programs and insights into market dynamics and emerging investment opportunities.

THIS WEEK’S BREAKING NEWS
Apple joins Microsoft in OpenAI board role

Apple joins OpenAI's board as an observer, aligning with Microsoft's non-voting role, through a deal to integrate ChatGPT into Apple devices. Phil Schiller, the head of Apple’s App Store and a member of its executive team since 1997, will attend OpenAI board meetings. OpenAI’s board includes leaders from Instacart, Gates Foundation, and Sony Entertainment.¹

MARKET UPDATE
Revolut CEO's $200M AI-driven VC fund

Revolut CEO Nik Storonsky launched Quantum Light Capital, a $200 million AI-powered VC fund aimed at revolutionizing venture capital by leveraging AI for investment decisions. The fund, led by CEO Ilya Kondrashov, uses AI to scan corporate databases and LinkedIn to identify high-growth startups. Quantum Light expects to invest approximately $5 million per deal and add one new investment monthly.²

UK tech funding triumphs over China

The UK has surpassed China to become the world's second-largest tech ecosystem by funding, raising $6.7 billion in the first half of 2024, driven by significant rounds from companies like Monzo and Waybe. Despite a 2% year-on-year decline, the UK remained more robust than China's $6.1 billion. However, concerns include fewer new unicorns, a decline in IPOs, and reduced international and institutional investor participation.³

Private market evolution: BlackRock acquires Preqin

BlackRock is set to acquire UK-based Preqin for £2.55 billion, enhancing its foray into alternative assets and financial information provision. This acquisition, following BlackRock's $12.5 billion purchase of Global Infrastructure Partners, highlights its strategy to integrate data services into its Aladdin and eFront platforms. Preqin, which tracks private equity and hedge funds, has 200,000 users and has seen 20% annual revenue growth, reaching $240 million expected in 2024.⁴

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
Apple approves Epic's game store amid dispute

Epic Games accused Apple of delaying the launch of its game store in Europe by arbitrarily rejecting submissions, alleging violations of the Digital Markets Act. Apple, facing legal pressure, eventually approved the app. The dispute is part of a broader conflict since 2020 over Apple's App Store policies, including a 30% commission on in-app purchases and restrictions on alternative payment methods.⁵

Ireland's first 100% digital mortgages by Revolut

Revolut will launch 100% digital mortgages in Ireland by early 2025, aiming to streamline the application process and compete with traditional banks. CEO Joe Heneghan stated that Revolut's entry into the mortgage market will leverage its existing IT infrastructure to offer faster and simpler mortgage solutions, expanding its services beyond payments and trading.⁶

Starship's fifth flight: Precision test ahead

Elon Musk announced that SpaceX's Starship, the most powerful rocket ever built, is scheduled for its fifth test flight in four weeks. The test will focus on achieving a pinpoint landing of the Super Heavy booster using the launch tower's "chopstick" arms. Previous flights have shown progressive improvements, with the last flight meeting all test objectives, marking a significant step toward operational readiness.⁷

Shein taps Indian market with Reliance deal

Shein is set to re-enter the Indian market through a partnership with Mukesh Ambani-owned Reliance Retail. The deal will leverage Reliance's extensive retail network, offering Shein products via Reliance's digital platform and physical stores. This move aims to capitalize on India's growing demand for fast fashion, combining Shein's global reach with Reliance's market strength.⁸

STABLETON NEWS
Expanding access: First transaction in Luxembourg structure

Our new co-investment vehicle just closed the first transaction. This institutional Luxembourg structure, which is complementary to our fund offering, enables investors to get exposure to single companies covered by the Stableton Unicorn Top 20 Fund.

CHART OF THE WEEK
2024: A year of market resurgence

This graph paints a compelling picture of market dynamics. After the significant downturn in 2022, where both S&P 500 returns and VC exits plummeted, the data highlights a strong recovery trend. The boom years of 2020 and 2021 saw soaring S&P 500 gains and a surge in VC exits. Fast forward to 2024, the forecast is bright, with a projected robust rebound in both metrics. This optimistic outlook echoes the post-financial crisis recovery, suggesting a vibrant resurgence in the venture capital market and renewed confidence in the S&P 500.

THE UNTOLD UNICORN STORY
Anthropic: AI research and products that put safety at the frontier

Founded in 2021 by former OpenAI employees, Anthropic develops reliable, interpretable, and steerable AI systems to ensure advanced AI benefits humanity. Known for pioneering AI safety and ethics, Anthropic has attracted significant investment and established itself as a field leader.

Fun Fact: Claude, Anthropic's chatbot, uses a unique "Constitutional AI" approach, training with ethical guidelines from the Universal Declaration of Human Rights and child-friendly rules. This ensures Claude's interactions are ethical and universally acceptable, making it safer and more predictable than other chatbots.⁹

WEEKLY Q&A
Does a rapid growth in Stableton’s Assets under Management impact the pricing of underlying assets?

While increased assets can lead to more transactions, it doesn't mean the value of the underlying assets will likely be affected. The secondary market for the largest unicorns has significantly grown and become more liquid and sizable in recent years. Our frequent small transactions are structured to be discrete, ensuring they do not affect the value of the underlying company or distort the secondary market.

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

• Israel Private Markets Summit - Tel Aviv (July 16)

• IPEM - Paris (September 9-10)

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

• AIM Summit - Dubai (October 1-22)

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

• AltsUK - London (October 26)

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

WHAT’S NEXT
Liked this week’s edition? Share this Stableton Navigator to a fellow investor.

You can also forward this email or copy-and-paste this link: {{rp_refer_url}}