Classic car investment app raises $7 million in funding
Rally Rd., an app that allows users to buy shares in classic and collectable cars, has raised $7 million in Series A investment funding
Rally Rd., a classic car investment platform designed to allow its users to purchase shares in vehicles, has raised $7 million in funds as part of its Series A funding, according to TechCrunch. The app works by splitting each vehicle on the platform into an average of 2000 shares, which are sold via a mobile app to its users to form community ownership over a single classic vehicle.
Co-founders Chris Bruno and Rob Petrozzo opened up their company to two rounds of funding, the first of which raised $3 million earlier this year with the support of a New York investment company.
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Purchasing shares and assets online has become more commonplace over the last two years, a theme now set to extend to the classic car investment market. That shift contributed to Rally Rd's sizeable first funding round, something far less likely when Bruno and Petrozzo launched their company in 2016. Reportedly 50,000 members have invested millions since launch, although only 10 cars are currently available to purchase shares in.
By the end of 2019, that number is expected to increase ten-fold, with plans to use these funds for what its co-founders call a 'live investing ecosystem', a showroom where app users can view and then invest in cars in person. New York will be the location of the first showroom, with locations in Los Angeles, South Florida and in Texas potentially in the pipeline.
'We want to create that Apple Store atmosphere where anyone can come in and learn about equity investing on the spot,' Petrozzo told TechCrunch.
Rally Rd. purchases classic cars, registers them with the United States' Securities and Exchange Commission –which has an active role in the regulation of banking and commerce – and then puts them out for app users to buy shares in through registered broker-dealers in 32 states. Getting the other 18 US states on board is still an ambition for the company.
After the initial offering, trading windows will be opened up for shares to be bought and sold in the app-only secondary marketplace. One Rally Rd. partner has commented on how the support for the app has been reminiscent of previous ambitious digital projects such as the Amazon-acquired smart doorbell company Ring and mobile sneaker marketplace GOAT.
Looking ahead, Rally Rd. plans to offer a premium subscription service to customers, as well as expanding the user base outside of the USA into classic markets such as Australia, Canada, and Europe.
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