Jeffery Katzenberg’s Beverly Hills-based media and technology investment fund, WndrCo, announced Sept. 27 it participated a $7 million Series A investment round for New York-based Rally Rd. The funding was led by Santa Monica headquartered Upfront Ventures Management.
Additional participation in the round included Betterment Inc.’s Co-Founder Eli Broverman and Jeff Cruttenden, co-founder of Acorns Grow Inc.
Rally Rd. developed and operates an iOS app for users to invest in classic and antique cars and also operates a showroom in New York City. The company said in a press release it plans to “launch retail showrooms in all key markets where Rally Rd.’s customers are located, with Los Angeles” next on the list, although the company did not provide an estimated time for the expansion.
“If you want to invest in the best blue-chip collectibles, like art and classic cars, you need to travel the world to attend exclusive auctions, and you need very deep pockets. These events are not accessible to or top-of-mind for most Americans,” Rally Rd. Chief Executive Christopher Bruno said in a statement. “We’re building showrooms in large markets where everyone can go and actually see the collectibles they love and then directly invest in them through our platform,” Bruno said.
Rally Rd. stock is registered with the United States Securities and Exchange Commission; and minimum investments are one share, which typically costs $50. Registered broker-dealers monitor and facilitate trading through Rally Rd.’s secondary marketplace, and the company reports that since its initial vehicle offering in 2017, its “user base has grown to 50,000 members with millions invested among a dozen offerings.”
“By combining passion and financial liquidity into a large market, Rally Rd. has created a new, accessible and exciting investment category that people enjoy and share while driving returns,” Greg Bettinelli, partner at Upfront Ventures, said in a statement. “As a result, they are attracting an incredibly diverse range of customers including those completely new to investing, and I can’t wait to see how they continue to engage this huge potential audience.”
Funding from the round will be used to redesign the Rally Rd. app and optimize its speed and functionality as market demand increases.
“We wanted to design a platform that’s sleek, user-friendly and democratizes rare asset investing,” said Rob Petrozzo, co-founder of Rally Rd.
Real estate reporter Ciaran McEvoy can be reached at [email protected] or (323) 556-8337.
