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Why Fractional Investing + Alternative Assets + Secondary Marketplaces are on 🔥 right now!
Part One is all about What We Know in our two-part trend report.
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* We break down the new market indicators & behavioral consumer trends we're tracking, then figure out the unlock to growth & revenue.
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THIS WEEK’S DOPE NEW STARTUP IDEA COVERS:
* Fractional Investing + Alternative Assets + Secondary Marketplaces 🔥
WHAT WE KNOW:
* The Market Indicators & Behavioral Consumer Trends we've identified.
- thanks etienne! https://twitter.com/tienne_e
Over the next 30 years, an estimated $30 trillion of wealth will exchange hands from the baby boomers to Generation Xers and Millennials. Unlike their elders, these demographics want to be their own financial advisor and invest directly in companies and themes they believe in.
We are about to see the rise of community-led real world assets driven by:
1. The growth of online secondary marketplaces for luxury store of value items — Consumers want to invest as easily as they do with Bitcoin in sneakers or arts.
2. The democratisation of fractional investing — The move to fractional trading transform non-fungible asset to fungible assets that can be traded via order book based transactions.
- thanks cardrates! https://twitter.com/CardRates/
Securities markets have started introducing fractional share trading, opening up access to people who previously couldn’t afford to invest. And Mythic Markets brings an innovative new look to that investment strategy through its unique products.
In 2015 the SEC, under Regulation A+, began to allow companies to open initial public offerings (IPOs) to nonaccredited investors. That meant firms could issue fractional shares of traditional and alternative investment products embodied in capital-raising corporate structures.
- thanks connie! https://twitter.com/cookie
Mythic Markets, a young, San Francisco-based fractional investing platform for fans, has raised $2 million in seed funding led by Slow Ventures, with participation from Third Kind Venture Capital, Global Founders Capital and others.
Mythic only offers securities that are regulated by the U.S. Securities and Exchange Commission, which not only includes rare trading cards but also other things that Mythic plans to start selling next year, including vintage comic books, sci-fi memorabilia and, a little further afield, esports team equity. Investors needn’t be accredited, but neither can they invest more than 10% of their income or net worth in an offering.
- thanks jill! https://twitter.com/jillfgoldsmith
The Chernin Group along with Mark Cuban, sports greats Kevin Durant, Dwyane Wade, and Deshaun Watson, Bill Simmons and others have invested about $40 million of growth financing in Goldin Auctions, a leading marketplace for collectibles and trading cards. Chernin’s investment arm TCG led the round.
“At TCG, we focus on identifying high-growth sectors and then investing in the best businesses that we believe will define the category. We noticed the explosive interest in the collectibles industry and we went very deep looking for the best companies and executives — Goldin Auctions very quickly stood out as the leader in the space,” said Jacobs.
- thanks finsmes! https://twitter.com/finSMEs
Goldin Auctions is a marketplace for trading cards, sports memorabilia and other collectibles. The company is the official auction partner of the Naismith Memorial Basketball Hall of Fame, The Major League Baseball Players Alumni Association, The Jackie Robinson Foundation and the Babe Ruth Birthplace and Museum.
Ken founded Goldin Auctions in 2012 and built the company from a start-up grossing $800,000 in its first year to over $100 million in 2020. To date, Goldin Auctions has overseen more than $300 million in sales. Last month, the company shattered the industry record for the largest sports collectibles auction ever, completing $33 million in sales for over 1,000 items, including incredibly rare Michael Jordan, Patrick Mahomes and Mickey Mantle trading cards.
- thanks ingrid! https://twitter.com/ingridlunden
New York-based Rally, which has built a platform for owners to list rare collectibles, and for others to take investments in them starting at $1, has raised $17 million in an investment of its own, on the back of reaching 200,000 users investing in some 120 “IPOs”, equivalent to more than $15 million worth of assets, according to the startup.
“We want to have a front-row seat in the alternative investment space, and Rally is the perfect partner, as the average investor on Rally is just 27 years old, we will be able to increase our engagement with younger target groups. We will continue to learn about digital communities and explore business opportunities in FinTech,” said Stephan Baral, head of Porsche Ventures U.S., in a statement.
- thanks max! https://twitter.com/MaxDuron
In facing the crisis, Sotheby’s pivoted fast, holding more than 100 online sales between March and June and, according to Amy Cappellazzo, chairman of the house’s fine art division, new clients made up around 30 percent of almost every one of them. Online sales totaled nearly $200 million during that period. (The same period in 2019 saw 40 online sales that brought in $23 million.)
Those results were seemingly buoyed by millennials, a generation comfortable in the digital space. In early August, the house announced that although overall sales of art for the first seven months of 2020 were down 25.3 percent from the same period in 2019, millennials made up more than 30 percent of clientele in that period and were partly responsible for the period’s online sales reaching $285 million, triple the online total for all of 2019.
Christie’s sold nearly 8,000 lots online between when lockdown started in March and August; of all buyers in that period, 34 percent were new to Christie’s.
“Our client base is shifting,” he [Christie’s deputy chief marketing officer Matthew Rubinger] continued. “Where we are going is one consistent client journey where our clients—both newer, younger clients as much as mature, experienced collectors—can engage with us on their phones, on their computers. We now know that our clients want to engage with us in all of those different ways and we need to connect the dots for them.”
THE DOPE IDEA & THE BRAND EXECUTION:
* Taking the idea and amplifying that into tactical action.
Join us next week for the second half in our two-part report.
We’ll discuss on how to position ourselves as a new player in the Fractional Investing + Alternative Assets + Secondary Marketplaces space — and get into the development of the Brand IP, securing a legit Domain Name, then making it Internet LIVE.