Alt is getting into lending to let you borrow money from your collectible card collection
We've written several times about Alt, a platform that helps trading card collectors (think Pokemon, NBA, NFL, etc.) find, buy/sell, and store online. high-value card security. This week, after a few months of silent testing, the company announces a new product: Alt Advance.
The idea? If you have rare/precious trading cards stored with Alt, they want you to be able to borrow money against them. Alt has an idea of how much a given collection of cards is worth (and how its value fluctuates over time) and already offers secure card storage as part of its other products, which puts them in a unique position. to do something like that.
"If you have stocks, bonds, real estate, even cryptos now, it's very easy for you to go and take your assets, deposit them somewhere that keeps them, and get a loan for it. "said Leore Avidar, founder of Alt. me. "We want to do the exact same thing."
In its first phase of testing, Alt funded loans from its own balance sheet; now that it is beginning to develop the product, the company has secured a $200 million line of credit with alternative investment advisory firm Atalaya.
To be clear, the process here is a little more involved than saying "Hey, I've got a first-gen Charizard in a box somewhere. Money please!"
You must first have your card(s) appraised by a group such as PSA or BGS, a process that verifies authenticity and examines the cards for any flaws.
Once scored, you can send the cards to Alt's Vault, a fully insured facility that is temperature, humidity, and light controlled to keep the cards safe.
Once vaulted, a card is added to your Alt wallet - at which point it can be presented as part of your verified collection, sold on the Alt exchange, or, now, borrowed for.< /p>
Alt says they will currently allow collectors to borrow up to 40% of the value of their portfolio for up to 12 months at an annual interest rate of 9% to 10%. The company notes that it sees people using this liquidity largely for short-term loans – think bridge loans to help secure a property purchase – so they allow them to be prepaid at no cost. In terms of the loan sizes we're talking about, the team says they've funded loans across the gamut, from "very small" to "mid-single-digit million".
Alt is rolling out its lending product state by state, as lending regulations vary from region to region. They tell me that they are currently able to offer Alt Advance in about 30 states and expect it to go live in the rest of the states by the end of the year.
Ultimately, notes Leore, Alt could expand into other "alternative assets" beyond trading cards (think luxury watches, sneaker collections, etc.), but it doesn't. in no hurry.
“We are taking a very targeted approach: we are increasing our market share in trading cards. Until we're a top player, you won't see us in another asset class,” says Leore. "We want to win in one thing."
"When I created [Alt], it was like the key product I wanted to have," he adds. “I have now invested in over 50 companies, own crypto, own cards…none of these, when you go to a traditional bank, have ever been able to get secured loans. I am really fighting against this. I know the world is moving more towards these alternative assets. I want to be the company where we understand those strengths, and I believe that's where the future lies. »
Alt has so far raised $106 million in venture funding, backed by BoxGroup, Spearhead, and Alexis Ohanian (via 776), along with a number of professional athletes, including Tom Brady, Kevin Durant and Candace Parker.
We've written several times about Alt, a platform that helps trading card collectors (think Pokemon, NBA, NFL, etc.) find, buy/sell, and store online. high-value card security. This week, after a few months of silent testing, the company announces a new product: Alt Advance.
The idea? If you have rare/precious trading cards stored with Alt, they want you to be able to borrow money against them. Alt has an idea of how much a given collection of cards is worth (and how its value fluctuates over time) and already offers secure card storage as part of its other products, which puts them in a unique position. to do something like that.
"If you have stocks, bonds, real estate, even cryptos now, it's very easy for you to go and take your assets, deposit them somewhere that keeps them, and get a loan for it. "said Leore Avidar, founder of Alt. me. "We want to do the exact same thing."
In its first phase of testing, Alt funded loans from its own balance sheet; now that it is beginning to develop the product, the company has secured a $200 million line of credit with alternative investment advisory firm Atalaya.
To be clear, the process here is a little more involved than saying "Hey, I've got a first-gen Charizard in a box somewhere. Money please!"
You must first have your card(s) appraised by a group such as PSA or BGS, a process that verifies authenticity and examines the cards for any flaws.
Once scored, you can send the cards to Alt's Vault, a fully insured facility that is temperature, humidity, and light controlled to keep the cards safe.
Once vaulted, a card is added to your Alt wallet - at which point it can be presented as part of your verified collection, sold on the Alt exchange, or, now, borrowed for.< /p>
Alt says they will currently allow collectors to borrow up to 40% of the value of their portfolio for up to 12 months at an annual interest rate of 9% to 10%. The company notes that it sees people using this liquidity largely for short-term loans – think bridge loans to help secure a property purchase – so they allow them to be prepaid at no cost. In terms of the loan sizes we're talking about, the team says they've funded loans across the gamut, from "very small" to "mid-single-digit million".
Alt is rolling out its lending product state by state, as lending regulations vary from region to region. They tell me that they are currently able to offer Alt Advance in about 30 states and expect it to go live in the rest of the states by the end of the year.
Ultimately, notes Leore, Alt could expand into other "alternative assets" beyond trading cards (think luxury watches, sneaker collections, etc.), but it doesn't. in no hurry.
“We are taking a very targeted approach: we are increasing our market share in trading cards. Until we're a top player, you won't see us in another asset class,” says Leore. "We want to win in one thing."
"When I created [Alt], it was like the key product I wanted to have," he adds. “I have now invested in over 50 companies, own crypto, own cards…none of these, when you go to a traditional bank, have ever been able to get secured loans. I am really fighting against this. I know the world is moving more towards these alternative assets. I want to be the company where we understand those strengths, and I believe that's where the future lies. »
Alt has so far raised $106 million in venture funding, backed by BoxGroup, Spearhead, and Alexis Ohanian (via 776), along with a number of professional athletes, including Tom Brady, Kevin Durant and Candace Parker.
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