I rarely write about a company or product two posts in a row, but Rally Rd breaks the mold today. They are a special company with dynamic founders and a creative team.
Yesterday morning my partner Gary and I attended the Rally Rd board meeting in SOHO, NY.
The Board meeting went well and the team took us to their new store – at 250 Lafayette in SOHO – for a sneak peak of their new store (it opens to the public today at 1pm).
Rally Rd is an app where you can invest in million dollar works of automotive art (along with a bunch of other asset classes coming soon). ‘The Store’ is their showroom where they display the most interesting of these investments.
Long story short, co-founder and product and marketing lead Rob Petrozzo have done a spectacular job leading the launch of a fast growing app and now a physical store to drive the brand and growth.
Last night, Social Leverage held a small party for friends and partners at the new store. The rare Lamborghini Countach (Countach means wow!) in the pictures below will IPO today and should sell out very quickly at $127/share.
You will have to see the store for yourself to appreciate the vision of the brand and the team, but here are some pictures…
Today, our portfolio company Rally Rd will be offering their most unique and pricey cars – a 1980 Lamborghini Countach Turbo – $127 per share, 1-of-2 ever made, first time its ever been available to the general public. Initial Offering: 1/17, 1pm ET.
As a reminder, Marketsmith (by Investor’s Business Daily) is now a sponsor of the weekly show. All the charts you have been seeing in the videos and will continue to see are from Marketsmith. They are offering my readers a three week trial for $19.95. Click this link if you would like to try it out.
I am in Toronto and Ivanhoff is in Bulgaria.
I went to my first leaf game in 20 years last night. A popcorn is $8 and a beer is $12. I never comment on food prices, but WTF!
Before I get into this weeks episode, the Techmeme team asked to do a short podcast with me on the state of the big tech stocks. It came out well so have a listen.
Ten years ago I would have dismissed JOMO immediately.
Today, I am all about a JOMO lifestyle, though I will always have to battle FOMO because it lurks in my competitive soul and the connected world.
I am in Toronto for a few days.
I spent the day with four generations of my family…my mom, my nieces Jordy, Sammy and Amanda and Jordy’s beautiful baby twins. I love being an uncle. It is one of the only things that has come natural to me. Here are the twins:
Toronto just keeps booming. I was driving my mom to get lunch and we passed by the house I grew up in and my mom told me it just sold for $5.8 million. When they bought the home over 40 years ago, she told me they paid $99,000…which brought on a brief bout of FOMO!
We have two portfolio companies in the city, Joist and Street Contxt. I caught up over a coffee with Blair Livingston, Street Contxt’s founder to talk about the business and his vision as he enters year 6 of building a company and business focused on ‘Intelligently Connecting The Capital Markets‘.
I took two Sunday pitches in Yorkville from founders with great backgrounds and ideas.
I had dinner with a best pal Adam Ochshorn and Matt Golden (my friend and best Venture Capitalist in Toronto), which was so much fun.
Hotels Tonight offered up this great deal at Anndore Hotel which turns out to be a great refurbished Comfort Inn. Worth trying if you come to Toronto. The restaurant downstairs is called Constantine and it is a world class Mediterranean food experience.
A lot of the companies we invest in at Social Leverage rely on open source software.
A lot of these same companies contribute their code to the open source libraries for others to use.
I follow public market companies like Elastic and MongoDB that are open source companies. IBM just paid $32 billion for Redhat (3 times sales). I owned Mulesoft early in the year which was acquired by Salesforce for $6 billion.
I had a fantastic two days seeing great founders and friends at CES in Las Vegas.
Last night Mike Katz (founder of mParticle) invited me to dinner and sat me with Lupe Fiasco. I had no idea who Lupe Fiasco was (my son Max does and gave me some cool points when I sent a pic), which is probably why he was willing to sit with me in the first place.
2018 saw the venture capital business moving to larger and larger deals. There were roughly 200 deals around the globe in 2018 where $100mm or more was raised.
And yet the number of total transactions declined slightly from 2017.
This trend is much more obvious if you look at the six years from 2013 to 2018. Total deal activity has increased less than 10% while total capital investment has almost tripled.
These trends are unsustainable. It is certainly attractive to de-risk by moving upstream to invest in more mature companies, larger rounds, etc. But if we don’t reseed our fields there won’t be as many of those mature companies in the future.
At the moment, it is not fashionable to do what we do at Social Leverage, but like Fred says, I am certain that it will continue to be profitable.