Stableton Navigator | Index Ventures’ $2.3B AI Fund, Stripe’s New Valuation, Revolut's $500M Secondary Share Sale

IT’S WEDNESDAY AGAIN

Welcome to this week's edition of the Stableton Navigator. We're diving into the latest, future-shaping shifts in the private market space. From Shein's bold €200 million sustainability initiative to the strategic decisions of tech giants like Microsoft and Apple, we bring you the stories that matter. Get a glimpse of the groundbreaking advancements in AI. Let’s dive in and see what’s changing the game this week.

THIS WEEK’S BREAKING NEWS
Antitrust concerns shift Microsoft & Apple from OpenAI board

Microsoft, having invested $13 billion in OpenAI, has given up its board observer role, citing confidence in the new board's direction. Apple also declined a similar role. This decision comes amid increased antitrust scrutiny from regulators in the EU and US. Despite stepping back, Microsoft remains a key partner, providing significant computing power and cloud storage, which has propelled OpenAI's growth and boosted Microsoft's Azure sales.¹

MARKET UPDATE
From basic tasks to reasoning: AI's evolution

OpenAI's five-level framework assesses AI's journey to human-like intelligence. Currently, AI is near level 2, focusing on complex task performance and advanced interaction. Data shows that reaching level 3, which includes reasoning and learning capabilities, is still challenging. The framework is designed to guide AI development, ensuring systematic progress towards human cognitive functions.²

Europe’s AI boom: $2.3B fund by Index Ventures

Index Ventures raised $2.3 billion, allocating $800 million to venture funds and $1.5 billion to growth funds, to invest in AI companies, especially in healthcare, hospitality, and education. Index's past AI investments include Mistral, now valued at $6.5 billion. Europe's AI ecosystem is growing, with significant investments from Microsoft and Salesforce.³

VC roars back

Startup valuations have surged to all-time highs, rebounding from the early 2022 slump. Generative AI businesses are at the forefront, but the upswing is widespread. Notably, the average deal size for venture-backed companies has increased by 20% in the last quarter alone, signaling renewed investor confidence and robust funding opportunities.⁴

PORTFOLIO & CO-INVESTMENT UPDATE
Gain early access to the next generation of industry-leading private companies

Stableton's portfolio products and co-investment program offer unique opportunities to invest in the most promising businesses before they go public.

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

PORTFOLIO NEWS
The Atlantic & OpenAI: Shaping news together

The Atlantic has partnered with OpenAI, making its articles available within OpenAI's products like ChatGPT. The Atlantic's content will be integrated to enhance news discovery and interaction, backed by their 1 million subscriptions and profitability milestone. The partnership also involves product development, with The Atlantic gaining access to OpenAI's technology to innovate news experiences.⁵

From waste to worth: Shein’s €200M circularity fund

Shein is launching a €200 million circularity fund to address fashion waste by investing in startups and established companies in the UK and Europe. This follows their $2 billion profit in 2023 and a $66 billion valuation. The initiative aims to enhance sustainability as Shein seeks a London IPO, navigating regulatory and ethical challenges.⁶

Inside Revolut's $500M secondary share sale

Revolut is planning a $500 million secondary share sale at a valuation over $40 billion, allowing current employees and CEO Nik Storonsky to cash in part of their stakes. This move follows Revolut’s recent profitability, with revenues hitting $2.27 billion and customer growth to 38 million across 38 countries. The sale is limited to current employees, excluding former ones, and highlights ongoing efforts to secure a UK banking license.⁷

Investors cash in: Stripe reaches $70B

Sequoia Capital has just confirmed Stripe's jaw-dropping $70 billion valuation, delivering a massive payday for its investors. With Stripe processing a staggering $640 billion in payments last year and growing at 30% annually, this milestone underscores the explosive growth and dominance of fintech in today's market.⁸

STABLETON NEWS
First anniversary: Stableton Unicorn Index (USD) AMC

We’ve reached the first year of our Stableton Unicorn Index (USD) AMC, which offers Swiss investors, including retail investors, access to a diversified portfolio of the world's Top 20 private tech companies (e.g. Stripe, OpenAI, Canva, Revolut, etc).

The NAV recently closed at an all-time high (+7% YTD). We experienced strong capital inflows in June, putting us well on track to achieve $100 million in strategy assets in the second half of the year. Furthermore, we completed 25 transactions for the unicorn strategy, aiming for over 100 transactions per year.

Investing in pre-IPO unicorns unlocks the growth potential of private markets, usually reserved for institutional investors. Contact us to learn more.

CHART OF THE WEEK
Big valuations, low cash: The wild ride of Series E+ funding

Valuations have varied significantly, peaking at an impressive $1.6 billion in early 2024. Despite relatively modest cash raises, such as $100M in the latest quarter, valuations have surged dramatically. It's wild seeing startups getting such high valuations, even with less money coming in. Seems like a rollercoaster ride in the funding world!

THE UNTOLD UNICORN STORY
Plaid: Enabling all companies to build fintech solutions

Founded in 2013, Plaid is changing the game in fintech by connecting apps to users' bank accounts seamlessly and securely. They provide the backbone that lets apps access and interact with financial data. By linking financial institutions and developers, Plaid makes managing your finances a breeze. Major fintech companies trust Plaid to handle data with top-notch security.

Fun fact: Plaid's office in San Francisco features a unique perk: a vertical treadmill for rock climbing, reflecting the founders' love for the sport. This climbing wall requires a safety waiver and has become part of the company's lore since Zach Perret once accidentally dropped his co-founder William Hockey 15 feet during an early climbing outing.⁹

WEEKLY Q&A
At what prices is Stableton investing?

Stableton primarily invests through secondary market transactions to gain direct or indirect exposure (e.g., via SPVs) to companies. Occasionally, we also participate in primary funding rounds. The secondary market prices we observe are typically lower than the last primary round valuations. These prices reflect the current actionable market conditions.

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

• 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
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