Chernin Group invests $40M in Goldin Auctions

Business is booming -- and the investors are noticing, too.

Goldin Auctions revealed Tuesday that it raised approximately $40 million in growth financing from The Chernin Group, an investment firm whose aim is "building and investing in leading, emerging consumer businesses in the media, commerce and technology industries."

According to the Runnemede, N.J., auction house's announcement, the funds will "help invest in technology, operations and audience development to further build upon the trust the company has established with buyers and sellers on its platform" as the auction industry has grown to more than $10 billion in annual transactions. The auction house was founded in 2012 and has grown quickly, grossing more than $100 million last year.

Founder Ken Goldin becomes executive chairman of the company while Ross Hoffman, who has held senior positions at Twitter, Google and Headspace, is the company's new CEO where he "will oversee the development of innovative new products and experiences that will redefine the collectibles industry and further cement the company’s reputation as the trusted leader in trading cards and memorabilia." Meanwhile, Goldin "will leverage his extensive knowledge, history and relationships in the collectibles industry to help lead the company’s continued growth."

“The collectibles industry has come a long way over the last 40 years and its popularity today is the result of enthusiastic, passionate and knowledgeable collectors,” Goldin said. “With the help and expertise of our new partners, we plan to always prioritize our consignors and buyers by providing them the safest and easiest way to trade these amazing and valuable assets. As a result, we’re confident that we’ll help oversee the continued growth and expansion of the industry as a whole.”

Hoffman echoed Goldin's optimism for the business.

“Ken and his team have built an incredible business and he is an icon in the hobby,” Hoffman said. “At the core, what they have built is trust: sellers trust us that they will get the right price and buyers trust us that they will get authentic merchandise. We authenticate everything we sell and we verify every bidder’s ability to purchase. The collectibles industry has one of the world’s most engaged and rapidly growing audiences. By building upon the trusted marketplace Goldin is known for with new technology, operations and content, we aim to make things easier, safer and faster for everyone in the hobby, old and new.”

TCG co-founder Jesse Jacobs said the move was in part because of the growth they have seen.

“At TCG, we focus on identifying high-growth sectors and then investing in the best businesses that we believe will define the category. We noticed the explosive interest in the collectibles industry and we went very deep looking for the best companies and executives — Goldin Auctions very quickly stood out as the leader in the space,” Jacobs said in a release. “We are investing in Ken’s vision, credibility and experience as well as Ross’s leadership. We are thrilled to be on Team Goldin as it continues to give back to the community and provide more great resources, content, cards and memorabilia for its collectors.”

Other companies the firm has invested in include Barstool Sports, The Action Network, Hodinkee, Exploding Kittens, Food52, Scopely, Headspace, Surfline and Cameo.

According to the release, several individuals and firms also have joined the funding -- Adam Bain and Dick Costolo from 01 Advisors; Mark Cuban; Kevin Durant and Rich Kleiman from Thirty Five Ventures; LightShed Ventures, led by Rich Greenfield; YouTube Co-founder Chad Hurley; Craft Ventures Co-Founder Bill Lee; musician and record producer Timothy “Timbaland” Mosley; Christian Oestlien, VP Product at YouTube; entrepreneur and creator Logan Paul; Anthony Pompliano of Pomp Investments; Shiva Rajaraman, VP Product, Facebook; Zillow and Hotwire Co-Founder Spencer Rascoff; Bill Simmons, Founder and CEO of The Ringer; Dwyane Wade of Wade Ventures; Mark Wahlberg; and NFL quarterback Deshaun Watson from Bleecker Trading.

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