Thought Leadership

Last week, markets held up narrowly in the face of ongoing geopolitical tensions, Fed meeting and triple witching Friday. Dow Jones was up fractionally, S&P 500 lost 0.15%, Nasdaq composite was up 0.2%. Global IPO activity has remained sluggish, with volumes down about 9.3% year-on-year to US$44.3 billion, driven by uncertainty from tariffs, volatility, and rising interest rates. Despite this, Asian markets, particularly China and Japan, showed strength, with CATL’s US$4.6 billion IPO marking the largest globally this year. Goldman Sachs resumed SPAC underwriting, reflecting easing regulatory pressures in the U.S., while crypto billionaire Justin Sun’s Tron announced plans to go public via a reverse merger with SRM Entertainment. Coinbase and Circle surged following the U.S. Senate’s passage of the landmark GENIUS Act to regulate stablecoins, boosting investor confidence in digital assets. Coinbase rose 16%, and Circle jumped 30%, significantly outperforming payment giants Visa and Mastercard, whose stocks fell amid concerns over potential disruptions from stablecoins. JPMorgan will launch a Dollar token on Coinbase’s blockchain. Meanwhile, major tech developments included Apple’s internal discussions on acquiring AI search startup Perplexity, valued at US$14 billion, and Elon Musk’s xAI burning US$1 billion monthly as it aggressively builds its AI models. Meta expanded its smart-glasses collaboration to Prada and Oakley brands, underscoring its wearable tech ambitions. Microsoft prepared for thousands more layoffs primarily in its sales division, continuing a broader restructuring strategy. In Canada, Sophic Capital client, Kraken Robotics announced a substantial $100 million bought-deal financing to accelerate global expansion, acquisitions, and bolster its balance sheet, highlighting its transition into a prime global contractor. Boardwalktech raised ~$400K through a non-brokered private placement, strengthening its financial position. Cybeats highlighted a major market inflection point as the EU formally adopted mandatory SBOM data exchange requirements, positioning Cybeats to capitalize significantly across 27 EU countries.

Last week, as geopolitical tensions resurfaced once again, Dow Jones fell 1.3%, S&P 500 index lost 0.4%, and Nasdaq composite was down 0.6%. Voyager Technologies’ IPO surged 82%, reflecting strong investor appetite for space technology stocks. Crypto exchange Bullish confidentially filed for a U.S. IPO, continuing the trend set by Circle’s recent blockbuster debut. Meta finalized a substantial US$14.3 billion investment in Scale AI to accelerate superintelligence development. Databricks projected reaching US$3.7 billion annual revenue. Qualcomm announced it would acquire semiconductor firm Alphawave Semi for US$2.4 billion to bolster its data center capabilities, while DoorDash acquired Symbiosys for US$175 million to enhance its ad technology platform. OpenAI, despite competition, opted to rent chips from Google Cloud to expand its AI computing capabilities. OpenAI claims to have hit US$10 billion in annual revenue, and according to Sam Altman, AI will be able to have ‘novel insights’ next year. Nvidia’s CEO confidently predicted competitors’ AI chip projects would likely be canceled given Nvidia’s accelerating innovation. A more than two-fold gain in CoreWeave’s shares since the end of April has saddled short sellers with US$1.6 billion in paper losses. Snap plans to sell AR glasses in 2026. Walmart, Amazon, Expedia and other companies have explored whether to issue their own stablecoins in the US. Shopify announced it will be integrating stablecoin payments through partnerships with Coinbase and Stripe, marking a significant crypto expansion slated to roll out widely later this year. Thinkific announced a $13 million secondary share offering. In news pertaining to Sophic Capital clients, Boardwalktech renewed a key multi-year agreement with a major U.S. bank, expanding the use of its Velocity product, which has demonstrated strong ROI potential, further attracting other banks including entering proof-of-concept stages in Mexico.

Markets closed the week up, despite the social media drama between Musk and Trump. Dow Jones was up 1.2%, S&P 500 closed up 1.5%, Nasdaq composite gained 2.2%. IPO momentum strengthened, with Circle surging 180% in its debut, and Gemini filed confidentially for an IPO. Banking app Chime set a tentative IPO valuation around US$10.7 billion, while Voyager Technologies aims for a US$1.6 billion IPO valuation. Despite these bright spots, enterprise software IPO activity has remained muted, constrained by valuation challenges. Singapore’s sovereign fund Temasek notably reduced startup investments significantly, shifting toward lower-risk assets. Meanwhile, Elon Musk’s xAI prepared a US$300 million secondary share sale at a valuation of US$113 billion. SpaceX is on track for US$15.5 billion revenue. Samsung is close to a deal to invest in Perplexity and put the AI startups’s search tech onto its phones. Meta aims to fully automate Ad creation using AI. Meta signed a nuclear power deal with Constellation Energy. Shares of data center developer Applied Digital rose 50% after the company said it leased part of a large facility to CoreWeave, a firm that rents out Nvidia chips to artificial intelligence developers. Amazon will test robots for delivering packages. Walmart and Wing will expand drone delivery to five more US cities. In Canada, Sophic Capital client, Ionik reported strong Q1 2025 results, highlighted by 62% Adjusted EBITDA growth. Plurilock announced record quarterly revenue growth and secured new critical-services contracts totaling $1.3 million, underscoring its leadership in cybersecurity services. Legend Power Systems received a follow-on order for four additional SmartGATE units, reinforcing customer adoption and margin expansion opportunities. Cybeats Technologies expanded its SBOM Studio contract with a Fortune 500 water infrastructure firm by 34%. AMD will acquire the engineering team from Toronto-based Untether AI. Crypto startup Rails raised US$14 million, launching its hybrid exchange platform to blend decentralized control with centralized performance.

Last week, Dow Jones rose 1.6%, S&P 500 gained 1.9%, Nasdaq composite rose 2%. For the month, Dow Jones rose 3.9%, S&P 500 gained 6.15% (best May return in 35 years), and the Nasdaq was up almost 10% (largest monthly gain since November 2023). That said, tariff related headlines once again pressured markets on Friday. Chime is targeting a US$11B IPO valuation, while Shein is now considering a Hong Kong IPO after regulatory delays in London. Discord, anticipating an IPO, introduced “Orbs,” virtual rewards designed to boost ad engagement. SoftBank proposed a joint US$300B U.S.-Japan sovereign wealth fund to finance technology and infrastructure projects. Salesforce will acquire Informatica for US$8B to bolster its AI capabilities. Nvidia forecasted a US$8B revenue hit from stricter U.S.-China export controls, despite robust growth elsewhere. The U.S. government also recently ordered American vendors that sell software for chip design to obtain export licenses first before selling to China. Mary Meeker, the most famous internet analyst of the dot-com boom era, says AI is growing faster than anything that came before it, in a new 340 page report. Meta and Anduril partnered to create VR devices for the U.S. military, while Anthropic’s CEO warned AI could eliminate half of entry-level white-collar jobs within five years, urging preparedness from government and industry leaders. Billionaire Chamath Palihapitiya has a blunt warning about quantum computing being able to break common encryption much sooner than expected. In Canada, Bell plans to invest hundreds of millions to build six AI-focused data centres. Sophic client, Kraken Robotics reported Q1 results and reiterated its full-year guidance, expecting significant revenue and EBITDA margin expansion driven by its recent subsea LiDAR acquisition and new subsea manufacturing facility in Nova Scotia. Sophic client, American Aires, reported record Q1 revenue of $5.38M, up 164% year-over-year. Management anticipates profitability improvement in upcoming quarters, reaffirming 2025 revenue guidance of $28M–$32M, and adjusted EBITDA guidance of $2M loss to a $2M profit.

Last week, Dow Jones fell 2.5%, S&P 500 lost 2.6%, Nasdaq composite was down 2.5%, as US tariff fears once again surfaced, and treasury yields rose earlier in the week. President Trump proposed a 25% tariff on imported Apple devices, pressuring domestic manufacturing. OpenAI acquired io, an AI-device startup by Jony Ive, for US$6.5 billion, with plans for AI “companions” potentially adding substantial value. Coreweave raised US$2 billion in bonds, showing strong investor appetite for AI infrastructure. Salesforce resumed acquisition talks with Informatica, while Nvidia criticized U.S. AI-chip restrictions, highlighting significant market share losses in China. Snowflake surpassed US$1 billion in quarterly revenue, buoyed by AI ambitions, and BYD overtook Tesla in European EV sales for the first time. Tesla released a compilation video Tuesday of its Optimus humanoid robots that it says autonomously performed a variety of tasks, including throwing a trash bag into a bin and vacuuming the floor. Google partnered with Warby Parker for AI-powered smart glasses, signaling competitive innovation against Meta and Apple. Apple is aiming to release its AI smart glasses next year. Nvidia introduced NVLink Fusion, allowing integration with third-party AI chips, while Google expanded AI-driven search capabilities to all U.S. users. Canada’s largest pension plan, CPPIB, increased its U.S. investment exposure to 47% despite domestic pressure to allocate more to Canadian assets, driven by better returns (9.6% in the U.S. vs. 5.8% domestically over five years). In Canada, Shopify launched new AI tools, including an AI-powered storefront builder and upgraded Sidekick commerce assistant, emphasizing enhanced merchant experiences and efficiency. In news pertaining to Sophic Clients, Kraken Robotics secured over $3 million in orders. Legend Power Systems reported strong Q2 F2025 revenue growth ($523K vs. $124K), driven by its SmartGATE™ power management system and strategic orders, though higher costs led to a wider net loss.

Last week, Dow Jones rose 3.4%, S&P 500 was up 5.3%, Nasdaq composite gained 7.15%. eToro’s stock surged 34% following its Nasdaq IPO, marking renewed investor enthusiasm after recent market volatility. Banking app Chime revealed accelerated revenue growth of 32% in Q1, bolstering prospects for its imminent IPO. Perplexity is discussing raising US$500 million at a US$14 billion valuation, reflecting growing investor confidence in its AI-driven search capabilities. Nvidia and AMD announced significant AI chip deals with Saudi Arabia, capitalizing on relaxed U.S. export restrictions. Coinbase will join the S&P 500 index even as the company reported a customer data breach potentially costing up to US$400 million. CoreWeave’s stock dropped 7% after cautious revenue guidance, despite explosive growth, underscoring investor sensitivity to volatility in AI infrastructure spending. Google ‘super intensely’ debated buying Netflix, according to Google’s CEO. CrowdStrike’s CEO gave away 92% of his voting power. OpenAI said Friday it released an artificial intelligence coding “agent” that can automate software engineering tasks such as fixing bugs and answering questions about a codebase. Google is also working on AI agents, and other features. In Canada, Robinhood agreed to buy WonderFi for $250 million. Shopify shares jumped 18% after announcing its inclusion in the Nasdaq 100 Index. Cohere missed its revenue targets by 85%, highlighting slower-than-expected enterprise AI adoption. Canadian VC activity slowed sharply, with Q1 seed-stage deals hitting a pandemic-era low and exits virtually halted amid trade uncertainty. In news pertaining to Sophic Capital clients, Intermap reported robust Q1 results, growing revenue to $4.3 million from $1.7 million last year, driven by acquisitions and large government mapping contracts. The company reaffirmed 2025 guidance, targeting revenues of $30-35 million with a 28% EBITDA margin. Boardwalktech formed new strategic partnerships and strengthened its advisory board. Cybeats enhanced its SBOM Studio cybersecurity platform with AI-driven features, earning recognition from Canadian government-backed initiatives. American Aires expanded its NASCAR sponsorship.