‘NFTs will make their debut on Rally very soon’: Rally CEO

George Leimer, Rally CEO, joins Yahoo Finance’s Kristin Myers to discuss NFTs and purchases of collectibles.

Video transcript

KRISTIN MYERS: Welcome back. Well, the collectibles application Rally has raised $30 million in a new funding round as more people purchased and fractionally invest in collectibles like cars and even dinosaur bones. We're joined now by Rally CEO George Leimer. George, great to have you back with us.

So the last time we chatted, you were talking about how many people were purchasing some of these collectible assets, the growth that you had seen. Has that trend continued since we last spoke? Are more and more people seeking out those collectible cards, cars, and dinosaur bones?

GEORGE LEIMER: It has. First, thanks for having me back. It has. We're really pleased with the growth of the platform, both the growth in the number of users who are using the platform and the assets that are on the platform, both the number of assets and the value and the diversity of those assets. So we're really pleased with how it's going.

KRISTIN MYERS: So that trend-- do you think that continues once the pandemic is over and people might not have as much discretionary income as they've had throughout this pandemic?

GEORGE LEIMER: Well, I mean, look, I have no crystal ball, as I always say. But I think so. I think people have changed the way they think about a lot of things with regard to what they value, how they think about the things that they are nostalgic about from their past, and also how they think about investing and what investing actually means to them. I don't think there's going to be a wholesale going back to the way we were before COVID on any front, really, much less collectibles and investing.

So we're bullish about it. We're bullish about what we're doing and how we're going to expand. And we think largely, a lot of the expansion that we have planned will continue to fuel the growth of the platform.

KRISTIN MYERS: So you know, George, we actually have a banner going there that talks about how the wealthy are spending their money throughout this pandemic. But so many people, not just the super rich or the ultra wealthy, have more and more discretionary funds in their bank accounts right now. And with the ability to fractionally purchase and invest, I think not just in stocks but perhaps also in collectibles, it opens up the door for folks who don't have mega millions to really get into this space.

Can you talk a little bit about the average Rally consumer and user? Is it only the ultra wealthy or are you seeing, you know, just the average Joes as well also putting their money down on some of these collectibles?

GEORGE LEIMER: Well, look, you just accurately stated the entire thesis for Rally, right? It really isn't the ultra wealthy. The average person on Rally is a 28-year-old. It's not a person in the top five percentage points of net worth. It's a person that's just a more normal person in terms of their income and their net worth, and they're looking to get a piece of something that they are passionate about, that they love, and also that they potentially see as a good investment.

So it really, really is much more tilted to the average person. And frankly, that's what our mission is, right? Like, our view is that these assets are important. These are assets that people love and they care about, and it should not be just the playground of an ultra high net worth individual, that everybody should be able to get a piece of these assets. And that's why, you know, we do this every day. So it's absolutely not just the ultra wealthy.

KRISTIN MYERS: Of course, I made mention of that $30 million that you guys raised in your latest funding round. And congratulations to you for that.

GEORGE LEIMER: Thanks.

KRISTIN MYERS: What can people expect going forward from Rally with this new injection of capital?

GEORGE LEIMER: We're going to do three things with the capital. So the first thing is we're going to continue to build out the number of assets and the categories of assets that Rally offers. You know, our thesis is there's no reason why everything in the world couldn't be a tradable asset if it's something that's rare and something that people care about and have passion about. So we will expand categories and the number of items pretty aggressively.

The second thing is just building and continuing to expand on our tech platform, both in terms of the robustness of the platform and also the features of the platform, an entirely new secondary market and trading system, and more and more features and ways to educate yourself about the assets, learn about the assets, and interact with the platform. And then I think the third thing is just fueling new user and new investor acquisition, creating more awareness for the platform and letting more and more people learn about it. And then, of course underlying all of that is building out the team to run all of that.

So we've got a pretty focused plan. We've got a pretty full plate. And we're going to attack it aggressively. We couldn't be more thrilled about our partners. To have Accel lead this round is just a terrific thing, and we're excited to get started on it.

KRISTIN MYERS: So I have to ask you, as you talk about expanding the amount of collectibles and types of collectibles that are going to be available on Rally, I'm curious to know how you guys are approaching or are going to approach NFTs going forward, if that's going to be a whole section. Or perhaps it already is and you're planning on expanding that action on Rally. Or is there perhaps a potential to make some of these collectibles into NFTs themselves?

GEORGE LEIMER: Yeah, I mean, look, we talked about this a little bit the last time I was on with you-- on with you. And I think we view NFTs-- so first off, the short answer to your question is yes, NFTs will make their debut on Rally very soon. We view NFTs as an asset category just like any other asset category or asset class.

And so NFTs absolutely belong in the conversation. We're bullish on them. And frankly, again, they prove the entire thesis for Rally, as we've all seen, right? NFTs have exploded in terms of value just like other collectible and other assets. And so the ability for the average person to get access to them is limited. We plan to give that access back to them through the Rally platform.

So it won't just be NFTs, but it will also be other platforms like intellectual property and income-producing assets. You know, art, real estate, and some other categories to be named later. But we're bullish on the entire space, and certainly NFTs are going to be part of that.

KRISTIN MYERS: Would you accept any crypto payments for some of these collectibles?

GEORGE LEIMER: No plans to do that. No plans to do that currently. But I've learned never to say never. I think six months ago if you had told me we'd have a dinosaur, I would have probably looked at you sideways. But we have a dinosaur, so crypto certainly probably isn't a bridge too far.

KRISTIN MYERS: All right. Not yes, not no, but maybe. George Leimer, CEO of Rally, thanks so much for joining us today.