Rally Rd., an investment marketplace that lets people buy shares in collector cars via mobile app, will be looking for B round funding later this year, Christopher Bruno, founder and CEO, told this news service.
The New York City-based company acquires cars and securitizes them, giving investors the ability to buy shares in the cars, starting at about $50, according to Bruno.
Rally Rd., which was founded by life-long friends Christopher Bruno, Max Niederste-Ostholt, and Rob Petrozzo, plans to add new asset classes this year, such as high-end memorabilia and collectables. Its model of equities backed by individual securities can be applied to a number of categories, Bruno explained.
“We want to be the centralizing force for alternative assets,” he said. The idea for Rally Rd. came about eight years ago when he was 30, Bruno said, and draws on his interest in cars, which he preferred to the equities market.
The company, which is currently U.S.-focused, could be a target down the road for a large financial institution or fintech company with a consumer base looking to diversify, he said. Rally Rd. is also well-positioned to go public, added Bruno, who previously worked in venture capital.
Rally Rd. has raised $10m so far. An oversubscribed $7m Series A in 2018 was led by Upfront Ventures. The $10m includes some $2.9m in seed money from Rev Ventures, Social Leverage and other angel investors, according to reports.
While the cars are held in its east coast storage facilities, earlier this year Rally Rd. also opened a 1,500-square-foot showroom in a storefront in New York City’s SoHo neighborhood to give people a peek at vehicles and branded merchandise.