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Elon Musk’s artificial intelligence startup, xAI, aims to secure $1 billion in equity financing to compete with industry leaders such as OpenAI, Microsoft, and Google. The company, co-founded by Musk, has already garnered $135 million from investors, as revealed in a filing with the US Securities and Exchange Commission.
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Venture Capital: Starbucks Strikes Deal with Sequoia on Chinese Investment Partnership
Starbucks Corporation (NASDAQ: SBUX) has launched a partnership with venture capital firm Sequoia. The two companies will co-invest in China and look to launch “commercial partnerships with next-generation food and retail technology companies.”
In a statement, Starbucks said it will provide retail expertise, infrastructure, and scalability to targeted companies.
The DailyAlts Playbook: Long Agriculture, Short Peloton Rides, Crypto Sentiment, and the Slump in Hedge Fund AUM
THE DAILYALTS PLAYBOOK April 24, 2020 The DailyAlts Playbook: Long Agriculture, Short Peloton Rides, Crypto Sentiment, and the Slump in Hedge Fund AUM PRIME OVERVIEW Good morning, “He told me to go into farming.” That was the opening line of a column I wrote in 2011 about famed investor Jim Rogers. When I was coming…
ESG: Morningstar Announces Deal to Buy Sustainalytics to Boost ESG Support
Morningstar, (Nasdaq: MORN) announced an agreement to acquire Sustainalytics, a globally recognized leader in environmental, social, and governance (ESG) ratings and research.
Morningstar currently owns an approximate 40% ownership stake in Sustainalytics, first acquired in 2017. Under the terms of the deal, Morningstar will buy the remaining approximate 60% of Sustainalytics.
Alternative Investments: Bank of America Says Gold Will Hit $3,000
The Federal Reserve will drive gold prices to $3,000. That’s a prediction by Bank of America this week. In a report titled, “The Fed Can’t Print Gold,” the bank sees the yellow metal as a smart hedge against inflation. That price target represents an 80% return from the date of Monday’s report.
ESG: Black Rock Raises Concerns About Sustainability Commitments
BlackRock will place greater emphasis on climate issues moving forward. The alternative assets manager worries that firms will stop prioritizing climate and sustainability issues in the face of COVID-19. A new stewardship document expands on the firm’s push on companies to disclose reports on their impact on water pollution and emissions.
The DailyAlts Playbook: The Madness of Shorting Tesla, Expedia’s Capital Raise, the Belt Road Initiative, and “Gooooooold.”
THE DAILYALTS PLAYBOOK April 22, 2020 The DailyAlts Playbook Talks About The Madness of Shorting Tesla, Expedia’s Capital Raise, the Belt Road Initiative, and “Gooooooold.” PRIME OVERVIEW Good morning, Yesterday, I received a text from a close friend who had an idea. He wanted to short a stock that was trading at nosebleed levels, had…
Liquid Alternatives: Oil Makes History Pricing Below Zero; An ETF for the (Eventual) Rebound
The price of WTIC crude crashed to as low as minus $37.63 per barrel on Monday. The seemingly absurd pricing was triggered by the expiry of May’s future contracts scheduled for Tuesday. A trader would have to receive deliveries on any May contracts remaining open, and store the oil at exorbitant rates.
The DailyAlts Playbook: $0 Oil, How to Play Recreational Cannabis, and Why Macy’s Is Selling RE-backed Bonds…
THE DAILYALTS PLAYBOOK April 20, 2020 The DailyAlts Playbook Talks $0 Oil, How to Play Recreational Cannabis, and Why Macy’s Is Selling RE-backed Bonds… PRIME OVERVIEW Good morning, Please forgive my tardiness – but as an economist, I’m trying to figure out what kind of scotch to use to help these oil prices make sense…
Alternative Investments: Larry Fink Rejects Bailout Talk During Blackrock’s Q1 Call
Blackrock CEO Larry Fink took umbrage with at a question from Patrick Davitt of Autonomous Research. Davitt asked during a conference call this week if the Fed buying ETFs was a bailout for Blackrock.
Artificial Intelligence: AI is Helping Itself to Get Smarter and Smarter
Software programs have now become sophisticated enough to build AI programs that can improve and build upon themselves without human intervention. In testing, the program could leapfrog decades of AI research. Perhaps a seminal achievement, the Google program called AutoML-Zero could possibly discover more about AI than humans themselves.
Venture Capital: Forbes Releases the 2020 Midas List
Forbes magazine has published its annual Midas List of the top 100 people in the venture capital business.
The list is put together by Forbes and TrueBridge Capital Partners ranks industry participants by the success of the companies that have funded and eventually exited.
Investors are ranked by their portfolio companies that have gone public or been acquired for at least $200 million over the past five years, or that have at least doubled their private valuation since initial investment to $400 million or more over the same period.
One-fourth of men and women on the list have been on the list for eight years.
The 2020 Midas List contains 12 newcomers and six returnees.
DailyAlts Playbook: Talks Ackman’s CNBC Defense, Earnings Season Blues, and Hedge Funds’ Small Business Cash Hubbalooza
This morning, the Dow Futures projected a 400-point decline as investors continue to digest the ongoing status of the coronavirus.
On Tuesday, President Donald Trump announced that the U.S. will halt all funding to the World Health Organization as the White House completes its review of the coronavirus outbreak.
Alternative Investments: What’s Happening With Shadow Banking
In the Great Credit Crisis, banks took the biggest hit and the lion’s share of blame for the economic collapse.
Banks entered the crisis with too little equity capital. Their loan portfolios consisted of garbage loans. From 2008 to 2012, 414 banks with almost $700 billion in assets failed. Hundreds more had to seek a merger with financially secure institutions.
This time, the banking system enters into an economic slowdown in much better shape.
Digital Assets: Bitfinex Transacts BTC Worth Record-Breaking $1.1B For A Minuscule $0.68
On April 10, there were waves in the crypto world when a massive bitcoin transaction of 161,500 bitcoin (BTC) occurred at a fee of 0.00010019 BTC.
Translated to US$ the two sides of the equation equal to $1.1 billion vs charges of $0.68. Don’t even try to work out the percentage on that one
FinTech: Wellpay Raises $3.8M; Offers Zero-Interest, Zero-Fee Plans To Help With Medical Bills
As healthcare providers and patients reel from the COVID-19 crisis, Wellpay steps up to help.
Fresh from a raising of $3.8 million from lead investors 8vc, Mubadala Capital-Ventures, Montage Ventures, TTCER, and Advisors.fund, healthcare fintech Wellpay has accelerated the launch of its platform.
DailyAlts Playbook: Academic Suppression, Cuban 2020, Loan Standards, and Daft Punk to DJ Shadow
THE DAILYALTS PLAYBOOK April 13, 2020 The DailyAlts Playbook Talks About Academic Suppression, Cuban 2020, Loan Standards, and Daft Punk to DJ Shadow PRIME OVERVIEW Good morning, We return from the holiday weekend with some greater confirmation that this virus likely didn’t come from a Seafood market in China. Of course, we won’t ever be…
MSCI Research: Private Equity Firms Face a Valuation Reckoning
Private equity funds could face a huge hit to valuations as of the end of the third quarter, according to MSCI Research.
Using their private equity valuation model, they determined some private equity funds could take a Q1 write-down of portfolio companies by as much as 35%.
Investors who recently compiled their year-end valuations may have a false sense of security right now. Many could be shocked in a few months when they realize the devastation of the first quarter.
Artificial Intelligence: How AI Could Change Our Lives Forever
The coronavirus will have a dual and adverse impact on people across the globe. Not only will it impact lives through sickness and death, but it will also dramatically damage their economic well-being. Technological innovation comes to the fore at the time of such pivotal crises. While cloud computing burst on the scene after the 2008 financial crisis, it may be AI’s turn to take center stage amidst, and after, the COVID-19 pandemic.
The DailyAlts Playbook: Helicopter Money, Pyromaniac Bank Rules, Black Swan Blowout, and Labor Woes
THE DAILYALTS PLAYBOOK April 9, 2020 The DailyAlts Playbook Talks Helicopter Money, Pyromaniac Bank Rules, Black Swan Blowout, and Labor Woes PRIME OVERVIEW Good morning, I am running late right now because I’m trying to wrap my head around today’s jobless claims and then the Fed’s helicopter money response. The central bank is pumping $2.3…
Venture Capital: Podium Closes $125 Million Series C Round
Customer messaging platform provider Podium announced that it had closed on a $125 million Series C round of funding led by YC Continuity.
Notable investors in the financing round included high-profile investors who also participated in the financing. This list includes Sapphire Ventures, Alkeon Capital, Recruit Co. Ltd., IVP, Accel, Summit Partners, and GV.
Alternative Investments: The Virus is Killing Uranium Production; An ETF That May Benefit
The price of uranium, during the past two weeks, has bounced higher off its lows by nearly 20%. Mining disruptions may be the cause, and if lockdowns extend for longer, the uranium spot price may go much higher. Value seekers looking to invest in a long-battered sector amidst the damage to the market by the virus may consider a uranium ETF.
Private Equity: Privitar Completes Series C Funding
Privitar announced the completion of an $80 million Series C funding round. The data privacy platform provider raised capital from private equity firm Warburg Pincus. It also saw participation from several other VC and PE firms. Investors include Accel, Partech, IQ Capital, Salesforce Ventures, and ABN AMRO Ventures.
Real Estate: Tom Barrack Hires Lobbyists for Commercial Mortgage Aid
Tom Barrack, the head of Colony Capital (NYSE: CLNY), has hired several lobbyists to help assist the commercial mortgage industry. Barrack has been warning for weeks about the challenges the industry faces due to late or unpaid rents tied to the lack of economic activity.
Artificial Intelligence: Can AI Predict a Child’s Future? No, it Can’t.
A study attempted to predict the future of children. Social scientists from Princeton ran an experiment with 160 teams to find out if a method existed to forecast how a child would do in later life.
What would be the child’s grade point average score? Could the family be evicted from their home? Each team had access to 15 years of data and was free to use any predictive tool they thought fit. Result: No team turned out even remotely successful.