Ezra Levine, Collectable CEO, joins Yahoo Finance's Alexis Christoforous and Brian Sozzi to discuss the new site that hopes to make investing in collectibles easier. Levine also weighs in on options they're currently exploring like physical access to these collectibles such as shareholder access, access to athletes, live events and much more.
ALEXIS CHRISTOFOROUS: Investing in collectibles can be challenging. After all, where are you going to store a classic Ferrari or a Mickey Mantle rookie card? Ezra Levine is the CEO of Collectable. It's a new site that aims to make investing in collectibles much easier. Ezra, good to have you on the show. So you have a very interesting business model here. Tell us how this works, because what you're doing is you are selling fractions or slivers of these collectibles to people, right?
EZRA LEVINE: Spot on, right? So, you know, on the public markets, for instance, you know, one person can't really come up with a trillion dollars to acquire Facebook outright, but odds are retail investors have $250 to buy one share of Facebook. That's the same concept we're applying for the memorabilia and cards category. Odds are the average sports fan will not have millions of dollars to buy some iconic items, but they will have $25. We're literally applying basic financial principles to an industry that is in real need of-- of innovation.
BRIAN SOZZI: Ezra, what are some of the collectibles you're looking to buy next?
EZRA LEVINE: Well, we have a constant supply of unbelievable items, items that the memorabilia category in some cases has truly never seen. Our job is to have a steady cadence of some really tremendous investment opportunities for sports fans of all income brackets all across the country.
ALEXIS CHRISTOFOROUS: So let's be clear, if you-- if you invest in, say, a-- a Mickey Mantle rookie card, which I believe is one of the items that you're offering, me as the investor, I don't get to touch that card, to have that card to show it off, to put it up in my basement, right? So what's the allure there for somebody to own these collectibles if they can't hold onto it and show it off?
EZRA LEVINE: So this has been a really attractive investment asset class, right? The problem has been the best investment opportunities have been at the upper end of the market, but retail investors, the average sports fan, has been completely priced out of it. The primary benefit of investing on our platform is financial ownership. As the price of these collectibles goes up, so will the value of your ownership in those items.
We're also keenly aware that there are collectors who'd like to express tangible ownership of these items. We're exploring ways to give people physical access not to the items themselves, but to things that represent the-- the items overall, things like shareholder access, things like access to athletes, things like live events. So we're keenly aware of all that. But the primary benefit is financial ownership in a historically very strong asset class that has completely priced out the common sports fan.
ALEXIS CHRISTOFOROUS: So are you in essence sort of the market maker or the specialist, if you will? Do you-- does the Collectable company in essence buy the collectible and then try to sell fraction of-- fractions of it sort of in the open marketplace? And what happens if, you know, you set a price and nobody's meeting that price? Are you left holding, you know, that collectible?
EZRA LEVINE: We have partnerships with all types of players in this space. We allow a lot of seller flexibility, which enables us to get our hands on the best in class supply. The beauty of our model and how we're different from a traditional auction house, in an auction house, all it takes is one person to say, I'm willing to pay a certain price for that item to be deemed that price point. Here, we need the market to speak for itself.
You can look at our Mickey Mantle offering right now, right? There are over 400 people who have said, I'm willing to buy Mickey Mantle at this price. We're also rolling out our secondary market, similar to our stock market, right? If we don't do a good job pricing it, the value could go down. But over time, we-- we expect of the opportunities that we provide on our platform to be solid investment opportunities for sports fans all across the country.