collx Raises $10M to Expand Card Collection Marketplace
CollX Secures $10 Million in Series A Funding
CollX, an online marketplace dedicated to trading cards, has successfully completed a $10 million Series A funding round. This investment was jointly led by Brand Foundry Ventures, based in Austin, and 114 Ventures, located in Philadelphia. Both firms had previously invested in CollX.
Additional Investors
Several other investment groups contributed to this funding round. These include Next Coast Ventures, FJ Labs, and Ben Franklin Technology Partners.
Strategic Partnership with Bobby Witt Jr.
Notably, Kansas City Royals baseball player Bobby Witt Jr., a trading card enthusiast, participated in the round. He joins CollX not only as an investor but also as an advisor and brand ambassador.
To date, CollX has raised in excess of $15 million through various funding stages.
Growth Potential in the Collectible Card Market
Reports indicate substantial growth potential within the U.S. collectible card market, with projections of several billion dollars in expansion over the coming years. CollX aims to capitalize on this trend by enhancing its solutions for card scanning and trading.
User Base Expansion
The company has experienced significant user growth, currently exceeding 3 million users. This represents a substantial increase from the 600,000 users reported in 2023.
CollX provides tools enabling users to scan and catalog their card collections, explore the collections of others, and engage in trades through its marketplace.
Key Metrics and Platform Updates
According to CEO Ted Mann, the application boasts 400,000 monthly active users. The marketplace currently supports 30,000 buyers and 20,000 sellers, demonstrating a month-over-month growth rate of 20%.
Since its initial seed funding in 2023, CollX has implemented platform improvements and introduced new revenue streams.
Partnerships and Revenue Diversification
One key development is the company’s referral program for Professional Sports Authenticator (PSA) card grading services. PSA evaluates the condition of collectible cards and assigns a corresponding score.
“The assessment of a card’s condition – considering factors like corners, edges, and centering – results in a score. Cards receiving favorable scores often command higher values than ungraded cards, benefiting the user,” Mann explained.
CollX has also established partnerships with live shopping platforms like Whatnot and Fanatics to facilitate card trading.
Furthermore, the company directs users to manufacturers such as Topps for the purchase of card box sets, earning commissions on these transactions. A 10% commission is applied to transactions occurring between users on the CollX marketplace.
Data-Driven Marketplace Experience
“Building a successful marketplace presents challenges. However, our focus on providing users with data about their collections, coupled with suggestions for potential sellers and cards based on their collecting goals, sets us apart. When a user adds a card to their cart, we proactively suggest other items from that same collection that may be of interest,” Mann stated.
Subscription Services and AI Integration
Following its seed funding round in 2023, CollX introduced a pro subscription service. Priced at $10 per month or $100 annually, this subscription offers benefits including a $10 marketplace credit, unlimited item uploads (previously limited to 500), a print checklist, collection export functionality, bulk pricing options, and a feature displaying who has viewed a user’s cards.
Leveraging advancements in artificial intelligence, CollX has integrated an AI-powered chatbot into its app. Powered by OpenAI’s models, this chatbot assists users with collection building, card pricing, and grading assessments.
Professional Tools and Revenue Streams
The company continues to offer its Card Dealer Pro service, designed for users and shops managing extensive card collections. This service enables rapid scanning and digital uploading of large inventories.
Mann indicated that both the CollX Pro and Card Dealer Pro subscriptions currently contribute the majority of the company’s revenue, although marketplace transaction revenue is growing and is expected to surpass subscription revenue in the future.
Competitive Landscape and Future Outlook
CollX faces competition from platforms such as Alt, a high-end trading card platform, Ludex, a card scanning application, and ComC, a sports card marketplace. Mann believes CollX differentiates itself by offering a broader range of cards and comprehensive solutions for collectors.
While currently not profitable, the startup intends to evaluate its path forward later this year, deciding whether to prioritize profitability or accelerate user and marketplace growth.
Planned Feature Rollouts
Future plans include the introduction of new product types within the marketplace, full inventory management capabilities for the Card Dealer Pro product, streamlined one-click grading submission to grading agencies, and the launch of a web-based version of CollX.