Private Markets Wrapped Vol. 3

Welcome back to Linqto’s Private Markets Wrapped, your bi-weekly deep dive into the dynamic world of private markets and cutting-edge unicorns. Each newsletter we will break down the market news you need to know into understandable insights, providing context and data to help you navigate your financial journey.

Let’s jump into the news you need to know:

Space Perspective is Redefining Space Tourism with Luxury and Sustainability

What Happened: Space Perspective has developed a wildly new take on space tourism: a luxury capsule that will ascend to the edge of space, offering passengers remarkable views of Earth. The company aims to make space tourism accessible to a broader audience, minimizing environmental impact. Unlike traditional space experiences, Space Perspective’s journey is smooth and comfortable, requiring no rigorous training or exposure to G-forces and zero-gravity.

How It Works

• Distinct from its competitors, Space Perspective's voyage is powered by a space balloon, eliminating the need for rockets. This approach ensures a serene trip to 100,000ft, where up to 8 passengers can enjoy world-class amenities in a luxury capsule — complete with comfortable seating, exquisite meals, and onboard wifi. The carbon-neutral technology underscores the company's commitment to sustainability.

Democratizing Access to Space

• In a recent enlightening Fireside Chat hosted by Joe Endoso, CEO of Linqto, with guest Jayne Poynter, co-CEO and founder of Space Perspective, the profound impact of Space Perspective's space voyages was explored, emphasizing the transformative experience of viewing Earth from a unique perspective:

“When people go up, a lot of people are going to have this profound experience. It then becomes a very sticky experience… It’s not just a pretty view people are seeing. This deeply affects people.”

The company’s approach is broadening access to space tourism, offering tickets at a starting price of $125K—markedly more affordable compared to the upwards of $1M+ charged by Blue Origin. This strategic pricing opens up space travel to a broader audience. The space tourism sector is projected to achieve a remarkable $17B valuation within the coming decade, as per Market.us

Watch our latest video on SpacePerspective here:

Explore how you can invest in Space Perspective here.

Reddit to File for IPO

What Happened: The world’s 7th most visited website, Reddit, has announced they are filing for an IPO at a valuation of $5B. Its expected March debut will make it the first major tech IPO in 2024 and the first social media IPO since Pinterest in 2019.

Thawing IPO Market:

• The IPO landscape has witnessed a slowdown, with Q4 '23 seeing only 370 IPOs filed globally—a decrease from 417 in 2022 and 921 in 2021.
• The downturn reflects the impact of macroeconomic challenges, including heightened interest rats, recession fears, and market volatility, all contributing to a backlog of companies awaiting favorable conditions to go public.
• However, optimism for the IPO market's revival is growing, with Federal Reserve Chair Jerome Powell signaling potential interest rate cuts and a reduction in inflation from 3.4% in September 2023 to 2.6% in December 2023, indicating a more favorable environment for IPOs in the latter part of the year.

IPO Backlog:

• Signs of a forthcoming surge in IPO activity are emerging, underscored by the growth in money market fund assets from $4.8T in Q3 2020 to $6.1T in Q3 2023. Additionally, CB Insights forecasts 257 tech companies gearing up for IPOs within the next 12-18 months.
• Reddit's move to go public could pave the way for other tech entities, potentially easing market hesitations and enhancing liquidity for investors.

Explore how you can invest in pre-IPO companies with Linqto before this potential resurgence.

DraftKings to Acquire Jackpocket for $750M

What Happened: DraftKings, the U.S.'s leading sportsbook, has announced its acquisition of Jackpocket, a lottery betting app, for a stock and cash deal worth $750M. This strategic move is projected to generate $60-100M in adjusted EBITDA for DraftKings by 2026.

How Jackpocket Works:

• By enabling customers to buy lottery tickets via their smartphones, Jackpocket simplifies the lottery experience. This service comes as state lottery ticket sales soared to nearly $113.3B in 2023, NASPL reports.
• Mark Cuban, a Jackpocket investor, stated:

“It's a very simple business. It makes playing the lottery easier and more fun.”

Online Gambling Sees Surge in Popularity:

• Since the 2018 Supreme Court ruling that allowed states to set their own gambling laws, online sports betting has thrived, now available in 38 states.
• The market, including leaders like DraftKings and Fanatics, is poised for growth, potentially generating $22B annually by 2026, according to PwC.
• Fanatics, still privately held and valued at $31B, represents a key player in online sports merchandise as well as a potential investment opportunity in this expanding market.

Explore how you can invest in Fanatics here.

Ledger Integrates Coinbase Pay for Direct Crypto Transactions

What Happened: Ledger, a leader in cryptocurrency self-custody, has announced the integration of Coinbase Pay into its offerings. This strategic partnership enables seamless cryptocurrency transactions directly from Ledger’s interface, reinforcing its mission to empower users with not just the ability to purchase crypto but also with secure self-custody solutions.

What Does Ledger Do:

• Ledger provides secure hardware wallets roughly the size of a USB drive, equipped with password protection and advanced security measures to safeguard cryptocurrency assets.
• Through its Ledger Live app, users gain a comprehensive platform that allows for managing assets conveniently, now enriched with Coinbase Pay's functionality for streamlined buying and selling.
• This development comes at a time when the cryptocurrency market cap exceeds $2T, highlighted by Bitcoin's rally past $60K.

Protection Against Crypto Fraud:

• The nature of cryptocurrency has made is susceptible to cyberattacks and fraud. Chainalysis, a blockchain technology company, estimated $1.7B in cryptocurrency was lost to fraud in 2023.
• In response, a growing number of investors turn to Ledger’s secure hardware for self-custody, favoring it over exchange-based storage solutions.
• Ian Rogers, Ledger's Chief Experience Officer, highlights the significance of self-custody in a recent interview with Coindesk:

“There are 5.3 billion internet users, 5 billion social media users, 500 million crypto owners, and there are on the order of 10 million people in secure self-custody. That's a very small number. So for us things like this are about advancing that narrative.”

Explore how you can invest in Ledger here.

Thanks for reading! We hope you found the private market updates valuable.

Please feel free to forward this newsletter to others who may benefit.

Linqto democratizes private investing by offering affordable entry points with low minimums and no added fees, making the private market more accessible than ever before.

To learn more about Linqto and join 715k+ users beginning their investment journey into the private markets, visit our website.

You can also follow us on social media for daily insights and news.

X, Instagram, Facebook, YouTube, TikTok, LinkedIn.

This material, provided by Linqto, is for informational purposes only and is not intended as investment advice or any form of professional guidance. Before making any investment decision, especially in the dynamic field of private markets, it is recommended that you seek advice from professional advisors. The information contained herein does not imply endorsement of any third parties or investment opportunities mentioned. Our market views and investment insights are subject to change and may not always reflect the most current developments. No assumption should be made regarding the profitability of any securities, sectors, or markets discussed. Past performance is not indicative of future results, and investing in private markets involves unique risks, including the potential for loss. Historical and hypothetical performance figures are provided to illustrate possible market behaviors and should not be relied upon as predictions of future performance.