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Over time, trading fractional shares of Tesla on margin can lose its endorphin rush.
When that happens, Wall Street is usually there with a fancy new product.
Rally, a New York-based app that lets investors buy stakes in vintage cars, premium wine, and baseball cards, announced a $17 million funding round yesterday.
The Rally Process
First, Rally's team sources and verifies the most "noteworthy items from collections and individuals all over the world," according to its website.
The collectible is then "turned into a company" in preparation for an "initial public offering." Participating investors must then wait 90 days, at which point they will have one day to trade the item before the next 90-day waiting period.
Items themselves can also be bought on the platform outright, triggering a distribution to investors.
Launched in 2017, Rally has nearly 200,000 users and now manages $15 million of collectibles.
Risks Abound: Rally is one of many platforms that have cropped up in recent years offering the allure of double-digit returns and "alternative investing" to retail investors.
Of course, the risks are plentiful:
- Unlike stocks, which are typically freely tradable on exchanges, Rally's relatively small user base means traders may not be able to liquidate their items quickly.
The Takeaway: Participating in the round was Reddit co-founder and husband of Serena Williams, Alexis Ohanian. Helpful for securing noteworthy Wimbledon memorabilia.