Alt: New Sports Trading Card Platform Raises $31M

The Rise of Alternative Assets and the Alt Platform

Prior to the pandemic, the alternative asset market demonstrated potential. However, with a widespread increase in investment across traditional asset classes, interest in identifying and capitalizing on value within this sector has significantly grown.

This surge in investor attention has spurred a substantial flow of venture capital into startups focused on creating platforms that connect buyers within specialized communities.

Introducing Alt: A Marketplace for Sports Trading Cards

Alt is a new startup that has secured over $31 million in funding from prominent investors. The company specializes in the rapidly expanding market of physical sports trading cards.

Alt functions as a trusted marketplace, verifying the authenticity of transactions and providing purchasers with assurance that the collectible cards they are investing in – sometimes for thousands of dollars – are genuine. The success of blockchain-based digital trading cards, like those offered by NBA Top Shot, has been fueled by the renewed enthusiasm for traditional collectibles.

A CEO's Passion Fuels Alt's Growth

Alt CEO Leore Avidar, a long-time sports trading card collector, is pleased to see increased participation in the hobby. He, like many within the sports card community, has spent years collecting and participating in online forums.

Avidar notes that this interest was previously difficult to share with those outside the dedicated collector base. However, he observes a shift, with both returning collectors revisiting old collections and new collectors being drawn in by rising prices and a more connected online environment.

“I’ve spoken with numerous individuals in the community, and what I find particularly appealing is its intergenerational nature. It’s common to see children and their parents engaging in this hobby together,” Avidar shared with TechCrunch.

Investor Confidence in the Alternative Asset Space

As the market gains broader acceptance, platforms like Alt are attracting increased investor interest. Within a short period, Alt completed seed and Series A funding rounds.

The seed round was led by First Round, while the Series A was led by Seven Seven Six, the firm founded by Reddit co-founder Alexis Ohanian. Additional investors include John and Patrick Collison, Kevin Durant, SV Angel, BoxGroup, Sue Wagner, and Jeff Morris’s Chapter One.

Alt's Strategy: Transparency, Liquidity, and Lower Fees

Avidar aims to enhance transparency and liquidity within the alternative asset market, making the acquisition of these assets as straightforward as buying and selling stocks on platforms like Robinhood.

A key element of Alt’s strategy is offering significantly lower fees compared to competitors, with a total sales price charge of just 1.5%, inclusive of processing fees.

Infrastructure and Services for Collectors

Beyond authentication, Alt has developed infrastructure tailored to the trading card market. Users who prefer not to physically store their cards can utilize Alt’s secure vault facilities.

These vaults provide temperature and light control, protecting cards from physical degradation and preserving their value. Furthermore, Alt offers an “Alt Value” rating – a feature designed to provide buyers and sellers with an estimate of a card’s market value, based on historical transactions and growth trends, similar to a Zestimate.

Future Expansion into Other Alternative Assets

Currently focused on sports trading cards, the Alt team intends to broaden its scope to include other alternative assets as the marketplace evolves. Avidar has identified watches, sneakers, and art as potential areas for future growth.

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