Fractional Ownership Trading and Investment for Sports Memorabilia
Things were taking off at Collectable in the fall of 2020. The company was on track to become the world’s first real-time fractional ownership marketplace for sports collectibles trading. It had just filed and received its qualification from the Securities and Exchange Commission (SEC) to begin operations, and it was just a few weeks shy of launch.
The company’s next big goal was to launch a secondary trading solution.
Collectable’s management team needed to find a broker-dealer that had the know-how, the regulatory approvals, and the technology with the intention of creating the world’s first secondary-market sports collectibles trading venue.
“Those were anxious days for a pre-launch company, so we really appreciated Templum’s willingness and ability to work with us on the fly,” said Collectable CEO Ezra Levine. “We were grateful that they matched our drive, and gave us the clarity to proceed.”
Primary to Secondary
When it first launched, Collectable had set the stage for a robust marketplace with its own issuance technology – launching shares of fractional ownership in major pieces of sports memorabilia as initial public offerings, and allowing investors to buy shares of those primary issuances via their app. This was groundbreaking, as the company allowed sports fans to own a piece of sports history – fractional ownership of a Michael Jordan rookie card or a jersey worn by Wilt Chamberlain – purchased directly from their mobile devices.
Still, senior management wanted more, specifically, a third-party that could assist with the complex investor onboarding process, and deliver a white-labeled, continuous secondary market for the buying and selling of shares of sports-related items.
Collectable had a clear vision for a best-in-class brokerage-like experience and, for a company just starting out, they needed a trusted partner.
To execute, the firm that worked with Collectable for secondary trading would need both the technology to include real-time matching of buy and sell orders, as well as the experience and regulatory approval sets to onboard investors and execute trades in the secondary market.
Collectable’s first call was to Templum to help the firm create an Alternative Trading System (ATS), an SEC-regulated electronic trading system, which matches securities orders from buyer and sellers.
“We knew they had an Alternative Trading System that was up and running and had good technology behind it and that is what drove us to reach out,” said Levine. “After we connected, we were impressed by the leadership and their willingness and ability to act nimbly and quickly to solve our problem.”
One Goldilocks – Many Bears
To be sure, Collectable reached out to other broker-dealers and ATSs as well.
They found a few broker-dealers and ATSs that had the regulatory approval sets to transact in private, unregistered securities – fractional shares in sports memorabilia – on a private ATS. Still, these firms did not have an ideal solution for Collectable, given their aggressive launch strategy.
“There were other companies being considered for sure, but we wanted a turnkey, scalable partner we could trust immediately,” said Levine.
“We needed a partner that could operate at the intensity and efficiency of a startup, and move faster than a more established company,” Levine continued. “Templum had what we needed in terms of functionality. That made them the logical choice.”
Hard Work and a Fast Payoff
Collectable went from search to live trading in less than a quarter.
“We were working together almost immediately,” said Levine. “It was a partnership between the two firms and that is ongoing. It all goes back to a true need for a partnership with a trustworthy, collaborative team. We were able to get that with Templum.”
One key element of the partnership is reliability.
“As simple as it sounds, Templum’s technology just works. In terms of the actual marketplace functionality, I don’t think we have had any errors or glitches. Every day, nine-thirty to four o’clock, five days a week. When nine-thirty rolls around, I’m not holding my breath each morning, because I know it’s all just going to work. I think that’s the ultimate compliment I can give Templum. It works, and it works just as described.”
The return on that partnership has already paid major dividends. When Collectable launched, there were other marketplaces offering fractional ownership, and some rudimentary trading, of sports collectibles.
The launch of Collectable took the industry by storm, with most of the entrenched players still scrambling to create real-time secondary markets for sports memorabilia trading.
“Collectable has emerged as a clear leader in the category. We brought key innovation to the collectibles industry and have been involved with numerous records out of the starting gate. Most importantly, we continue to chart an exciting future for the collectibles market”, said Levine.
A Great Partnership and a Bright Future
Now, Collectable has over 200 listed assets on Templum’s ATS, with millions of dollars worth of volume already logged, and plans to incorporate more and bigger sports collectible assets and increase liquidity.
Levine said differentiated trading technology has helped Collectable achieve its major milestones. The technology, in turn, is built on a strong partnership with Templum, whose proactive approach and integrity is reflected in the end product.
This partnership has been effective in proactively troubleshooting and improving the marketplace. It also has enabled Levine and Collectable to set their sights on a larger mission:
“Simply put, we want to become the most liquid marketplace for blue-chip collectible assets.”
Collectable is an investing platform and community for sports fans. As the first and only fractional ownership app dedicated to sports today, Collectable is re-imagining sports collecting and investing, a long-overdue modernization of a timeless tradition through fractionalized shares, more access, more liquidity, a lower price point, and less exclusivity. Collectable believes the greatest moments and artifacts in sports history should be accessible to the masses, not just the wealthy. Since its launch, Collectable has completed 200 sports collectible asset IPO's, has completed over $50million in transaction volume, and has produced 26 exits with an average return of +62% over IPO price. Collectable is available in the Apple Store or on Google Play and via www.collectable.com.
Unregistered securities involve a high degree of risk, including possible loss of your entire investment and there is no guarantee of liquidity in any given unregistered security notwithstanding such security being listed for trading on Templum Markets LLC’s Alternative Trading System
All securities transactions are effected by and through Templum Markets LLC, Member FINRA / SIPC and SEC-registered Broker-Dealer approved to operate an Alternative Trading System