Rally Rd. operates an SEC-compliant platform that purchases collector vehicles through a subsidiary, holds the titles, and hosts registered offerings where investors can buy up to 2,000 equity shares per car, with shares starting at $50. The app provides an app-based secondary marketplace with regular trading windows for each vehicle, a setup investors likened to a NASDAQ/NYSE experience for collectibles. Launched in 2016, Rally Rd. reports about 50,000 members who have invested millions; at the time of the article there were 10 cars available with plans to list 100 by the end of 2019. Vehicles are registered for sale through a registered broker-dealer in 32 states, and the company is working to obtain licenses for the remaining 18 states. Rally Rd. was not yet profitable and took no management fees or share of offerings; it plans to generate revenue via a subscription model similar to Robinhood's premium offering. The company also plans to expand into other verticals such as art and sports memorabilia and to make the app available internationally in Australia, Europe and Canada. Rally Road sources classic cars, creates a special-purpose entity to hold each car's title, and offers up to 2,000 equity shares in that entity via SEC-registered offerings. Investors can buy in for as little as $50, view the car's history and comparable sales, and after a three-month hold period trade shares in a monthly marketplace. Trades are settled through a registered broker-dealer that is currently licensed in 32 states. The cars are kept in a purpose-built, temperature-controlled facility paid for by offering proceeds, and the company plans to add a 24/7 live stream of owned cars. Rally Road currently takes no management fees or share of the offering but plans to offer premium or subscription services to generate revenue. The company also envisions expanding the model to other high-value, divisible assets (for example, fine art).

Total raised

$10M

Funding rounds

2

Latest round

Series A

Latest activity

Sep 2018