Alt Raises $17M for Sports Cards Investment Fund – Sportico.com
Sports collectibles platform Alt is seeking a $16.9 million infusion of new funds to expand its sports card investment fund, according to a filing with the Securities & Exchange Commission. Alt also runs a collectibles exchange and storage business, backed by early venture funding from a number of investors, including Alexis Ohanian, Kevin Durant and Darren Rovell.
“In some context, the fund has raised about $25 million (which has grown in net asset value a lot),” Alt founder Leore Avidar wrote in an email. “Not only is it the largest sports/trading card fund, it has outperformed the S&P and continues to have a low correlation with the S&P 500. We bought the top 1% of assets in the cards category and plan to do quite a bit with the fund over the next two years.
According to the SEC filing, released last week, Alt secured its first commitment for the new round in late July. As a private offering to accredited investors, i.e. people considered wealthy and savvy by the SEC, Alt is not required to disclose much more information than that publicly. Based solely on an SEC disclosure, Alt also filed in late July to raise money for a video game-focused fund, though the dollar amounts for it aren’t disclosed.
Alt’s brokerage and card storage business raised $305 million in venture capital, according to Crunchbase data, including a $75 million B-round in 2021 that included soccer star Alex Morgan. , Tom Brady and Giannis Antetokounmpo, the subject of one of the fund’s first investment Alt cards.
“We’ve done very well the last two years after buying Giannis and Steph Curry’s best card the year they won the championship,” Avidar said. He did not respond to a follow-up request for specific information on the fund’s performance and holdings.
The sports collectibles market, especially cards, has seen a resurgence with the pandemic; new records on card ratings were set seemingly every few weeks. Although the 2022 high-growth asset bear market has resulted in a year of decline for collectible cards, as investor Nat Turner said Sportico’s JohnWallStreet, prices remain robust. Earlier this month, a Honus Wagner card sold for $7.25 million through Goldin Auctions, the highest price ever paid for a sports card. The rise in Wagner’s valuation alone shows the strong growth in investor demand – the Wagner card was the first to cross the $1 million mark two decades ago.
The Alt fund, which will have over $40 million in invested capital at the close of this new funding round, won’t just be locked in to appreciate.
“These cards are not meant to stay in a vault,” Avidar said in the email. “We plan to create a sort of pop-up museum at some point so people can see the incredible collection we have put together. The fund will eventually live on the blockchain (we’ll tokenize it), and people will be able to buy and sell their interests in the fund.
Avidar said the feature could be ready as early as early 2024, adding, “You should see a lot more news from us over the next few months as card prices continue to set records.”