Before investing in any offering on Rally Rd.™ please be sure to review important investment documents located in the legal section of each asset portal. It is VERY important to us that you completely understand all of the risk factors when investing in our securities. Visit rallyrd.com/disclaimer and Terms of Service for additional information.
ABOUT RALLY RD.
Rally Rd. allows people to invest in premium collector cars through a simple mobile app. Our team of experts hand selects each investment opportunity and we acquire the cars. They are then securitized—turned into equity shares starting at around $50 — and made available to investors, who can create custom diversified portfolios by holding stakes in multiple cars.
We acquire rare, investment grade, collectible cars that we believe are appropriately priced and will increase in value over time. We share all key information about the vehicles with you through our user-friendly mobile platform, including provenance and ownership history, photos and videos, and market prices for comparable assets. If you like what you see, you can invest in each specific car.
Your trust and safety is important to us, so we partner with FINRA registered broker-dealers who confirm investor identities, issue shares, and oversee all transactions. We also invest with you on every investment offering, so you can be sure we are incentivized to select great assets and manage them with a focus on long-term returns.
All of the cars are owned by our subsidiary company, RSE Collection, LLC. When you invest in a car, you become a shareholder in a specific sub-company that owns a specific asset.
The cars are securely stored in our purpose-built, climate-controlled east coast facility. They are monitored by trained local staff and are kept under 24/7 video surveillance.
Rally Rd. only offers securities that are regulated by the U.S. Securities & Exchange Commission (the “SEC”) to protect our investors. You can find additional information on the specific SEC regulations that we rely upon, here.
Important Note: At this time our securities are offered for sale through a registered broker-dealer (and member of FINRA & SIPC) that is licensed in 32 U.S. states. When you sign up, we will let you know if you are located in one of those 32 states, and if not, we will notify you as soon your state becomes available for investing.
We (Chris, Rob & Max) are three life-long friends, who have always followed the collector car market, made some great investments, missed out on some others, but never felt like we had an access lane to get inside the velvet rope. We set out to leverage our experience as a tech entrepreneur, product designer and investment banker to democratize car collecting, and ensure that it keeps up with the times and continues to engage future generations.
We are also fortunate to have industry experts on our team who keep us abreast of key developments and ensure we maintain best practices. Our advisory board includes leaders in both the automotive and financial fields, and our senior staff and investors bring experience from some of the world’s leading companies and institutions, including Facebook, Barclays, Robinhood, New York University, Mecum Auctions, StockTwits, Boston Consulting Group, Algar Ferrari, and Gartner Research.
We factor rarity, significance, history, originality, value, condition and additional data-driven factors into every decision we make to acquire a car. We look for best-in-class vehicles and investigate whether they have been properly maintained or restored. We’re always working to find great assets for you and we keep a database of appealing cars so that we can act fast when they become available at the right price. Our offering is eclectic so there are options for different tastes, time horizons and investment strategies.
Have more questions? Reach out – firstname.lastname@example.org
USING RALLY RD.
For Active Assets, click on the ‘Buy Shares’ button at the bottom of that car’s portal to participate in the Initial Offering of shares, select the number of shares you wish to purchase, and complete the investor on-boarding questionnaire. You will be asked to provide some personal and financial information (as required by law) and to deposit funds to pay for your shares. Upon receipt and acceptance of investment documents from you and your co-investors, our broker-dealer will close the offering and process the transaction.
For Trading Assets, the process is very similar, however you can only place orders to buy shares (“BIDs”) or orders to sell shares (“ASKs”) during open trading windows, and you will be required to decide the maximum price per share that you are willing to pay or minimum you are willing to accept (a “limit order”).
Anyone over 18 with a U.S. Social Security number (that passes standard know-your-customer and anti-money-laundering checks) is eligible to invest, but the app itself is free and open to everyone. If you want to invest through a company or partnership, please contact us at email@example.com. Unfortunately, we are not able to accept investments through ERISA or IRA plans at this time.
Important Note: At this time our securities are offered for sale through a registered broker-dealer (and member of FINRA & SIPC) that is licensed in 32 U.S. states. When you sign up, we will let you know if you are located in one of those 32 states, and if not, we will notify you as soon your state becomes available.
Our cars are museum quality, for investment purposes only, so we treat them like art and only have them driven professionally for maintenance purposes. However, we plan to expand our offering to allow you to visit the collection and participate in unique driving experiences with similar cars starting in 2018. We are also launching a 24-hour live video feed from our state-of-the-art storage facility, so you can keep tabs on your investments and share with friends.
Initial Offering: The first time a car is being offered as an investment on Rally Rd.
Trading Window: The day of the month when offers to buy shares (“BIDs”) or orders to sell shares (“ASKs”) for Trading Assets are being accepted.
Active Assets: Assets that are open to investment. You can reserve shares for purchase at a later date or invest on the spot.
Private Assets: Assets that aren’t open to investment but may be in the future. We provide key information on them and give you the opportunity to sign up to be notified when you can invest.
Trading Assets: Assets that are accepting offers to buy or sell shares, which can be submitted during monthly “trading windows.”
Locked-Up Assets: Assets that have been fully-funded and are in a three-month ‘lock-up” period before trading windows open up.
Liquidated Assets: Assets that we have sold and are no longer available on the Rally Rd. platform.
Active Investment: Your current holdings. Once you have made an investment, your shares will show up under the “Active / Current Investment” tab in your account.
Pending Investment: A share purchase that has been placed or reserved, but not yet finalized. You can monitor it in your account.
Exited Investment: An investment that you have sold; your receipt and financial results remain in your account.
Comparable Asset Value: Prices of similar assets that that help you determine the fair value of a potential investment. Our interactive chart allows you to see the historical prices of comparable cars and other expert valuations as well as details about each transaction. There’s no guarantee that a car’s performance will mirror its ‘comps’, but it’s certainly valuable information.
At times we will open up an asset for reservations before we actually start accepting investments. When you reserve shares you express an interest in an upcoming offering. There’s no binding commitment on your part, but this allows us to evaluate demand and ensure there is enough availability of shares when the offering goes live. We don’t accept any unsolicited payments until the SEC has qualified the investment. At that time, we will provide you with key documents and, should you decide to participate, instructions on how to transact.
Have more questions? Reach out – firstname.lastname@example.org
INVESTING ON RALLY RD.
When you purchase shares on Rally Rd.™ you invest in an ownership stake in a mini-company that owns and operates a specific car. If its value rises, so should the value of your shares. If it earns more money than it costs to operate, you can get paid dividends. When you decide to sell your shares, you place an order through our partner broker dealers who will match you with potential buyers.
All investments carry risks and those on our platform are no different, so it’s important that you understand them. The value of your investment can fluctuate—in both directions—and, while we don’t lock you into a specific holding period, there’s no guarantee that there will be a buyer offering your desired price when you want to sell.
Furthermore, collector cars are real assets, and while that’s certainly part of their appeal, it brings risks, such as potential vehicle damage. The Offering Circular (“OC”) or the Private Placement Memorandum (“PPM”) for each car details these risk factors and is available for your review in the “Legal” section of the asset page. In addition, you can go to www.rallyrd.com/disclaimer for further information.
Rally Rd. is not a broker, but we do partner with FINRA & SIPC registered broker dealers to administer our securities transactions. They issue our securities and are responsible for ensuring that we remain in compliance with all SEC regulations. They are here to protect you as investors in the assets and securities on Rally Rd.™
You can sell some or all of your shares on the Rally Rd. app through select registered broker dealers. While your shares are not listed on a public stock exchange, like NASDAQ or NYSE, the trading process should feel familiar.
After an asset’s Initial Offering, we impose a 90-day “lock-up” period during which shares cannot be bought or sold. Once the “lock-up” period is over, the “INVEST” button is replaced with “BUY” and “SELL” buttons so you know the asset is Trading. You can sell your shares during “trading windows,” which open for each car on one specific day each month, by submitting sell orders (“ASKs”) through the app. During the trading window, you can revise your order as often as you want. When it closes, the broker-dealer will match sell orders and buy orders (“BIDs”) to determine the market-clearing price per share. If it’s at or above your ASK, your sale will clear and the buyer’s funds will be deposited in your account.
The market-clearing price is the price-per-share set by the broker dealer at the end of a trading window that matches as many BIDs and ASKs as possible. An ASK signals the minimum price at which an investor will sell his or her shares, and a BID, the maximum price at which a new investor will buy. So, if all BIDs are below all ASKs, there can be no match. The reverse is also true; if all BIDs are above all ASKs then all orders will get filled so long as there are enough shares available.
Yes, if you missed out on an initial offering you can still place buy orders (“BIDs”) to our partner broker dealers during monthly trading windows.
Shares in each asset on the platform are available to trade for one day per month from 10am to 4pm EST. The day of the month differs by car, and will be scheduled in the app.
During a trading window, existing investors can put some or all of their shares up for sale by placing an ASK order, or they can place a BID order to increase their ownership position. New investors can place BID orders to purchase shares from existing investors. These orders can be placed using the BUY and SELL buttons for the appropriate car in the Rally Rd. app.
You can set ASKs at a minimum acceptable price, and BIDs at a maximum acceptable price (these are known as “limit orders”). For example, you can place an order to “BUY 10 shares @ up to $90 per share” or “SELL 5 shares @ no less than $85 per share.”
You can change your ASK or BID orders as many times as you like during the trading window. When trading ends, the broker-dealer matches up as many orders as possible to determine the market-clearing price. Balances and positions are updated on the app when the trades clear.
There are several reasons this may happen. If you are a buyer, make sure that you have enough cash in your account to fund your BID. If you are a seller, make sure you have enough shares available to cover your ASK. If your BID was below the market-clearing price, or your ASK above it, then your transaction will not be completed. Also if you submitted an equal BID or ASK as someone else, orders will be filled based on availability of shares in the market.
Our partner broker-dealers will try to make the market as active as possible. The more supply and demand there is, the more likely you can buy or sell when you want.
No, the vast majority of the investment opportunities on the App are available to all investors, provided that you do not invest more than 10% of your annual income or net worth in any of our offerings. If you are accredited, that limitation does not apply.
Our fees reflect our goal to democratize the collector car market. In order to keep barriers to participation as low as possible, we don’t charge any commissions or management fees on the value of your investments. And the App is free, so you can browse and participate in community features at no cost. Presently, all your trades are also free. We may expand our offering to include pay-as-you-go and subscription plans that come with premium features, but we are committed to open access, so we’ll make sure there’s always a free option.
You can pay for investments by linking your bank account to the Rally Rd. App. All transfers in and out are made via an automated-clearing-house (“ACH”). For security purposes, we ask that you verify that the linked bank account belongs to you before you can start investing. You can do this instantly by securely logging into your online banking account through our integration with most major banks, or in about 24 hours by verifying the amount of two small micro-deposits sent to your account.
When you sell shares (or if your investments earn dividends), the money will be added to your Rally Rd. balance. You can view your balance at any time by clicking the “$” icon in the upper right-hand corner of the App. You can use these funds to make new investments, or simply withdraw them back to your personal bank account.
Note: We recommend linking a Checking account to avoid potential issues. Savings, money market and brokerage accounts are more often subject to restrictions on ACH transfers.
Yes, but only when necessary for your reporting purposes. You will receive a 1099 if you have sold shares or if you have received at least $10 in dividends during the calendar year. If you just purchased shares then you won’t receive a 1099. Tax documents are sent by e-mail prior to the end of February.
In general we intend to hold assets for the long term. However, we do keep close tabs on investor sentiment through the app, as well as broader market conditions. If we do liquidate an asset, the proceeds get paid to the shareholders (similar to a company acquisition).
Remember, trading windows provide flexibility to investors. Instead of having to wait for the car to be sold to exit your investment, you are able to decrease your exposure to a particular car by selling shares during a trading window or sell your position entirely. Likewise, you are able to buy shares in a car even if you missed its initial offering. So it pays to always keep tabs of what’s available through the app!
Have more questions? Reach out – email@example.com
PRIVACY & SECURITY
All of our investments are reviewed and vetted by a FINRA registered broker-dealer and are subject to SEC regulation. We are committed to making investing with us as transparent as possible. Everything we see, you see. All the information we have on an asset is made available to all of our members, even those who don’t invest.
We store, maintain and insure all of the cars on the platform for the benefit of investors. We understand that their upkeep is critical to preserving and growing long-term value, so we adhere to strict guidelines. Since we always invest alongside you, it’s in our shared interest to manage assets to the highest possible standards and you can be confident we don’t cut corners. In the highly unlikely event of asset impairment, any insurance settlement will be used to repair the asset to its previous condition (when possible), or paid out to the investors as a liquidation event.
Have more questions? Reach out – firstname.lastname@example.org
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This FAQ includes some statements that are not historical and that are considered “forward-looking statements” within the meaning of Section 27A of the Securities Act. Such forward-looking statements include, but are not limited to, statements regarding our development plans for our business, our strategies and business outlook, anticipated development of the platform and our product offering, and various other matters. These forward-looking statements express expectations, hopes, beliefs, and intentions regarding the future. The words “anticipates”, “believes”, “continue”, “could”, “estimates”, “expects”, “intends”, “may”, “might”, “plans”, “possible”, “potential”, “predicts”, “projects”, “seeks”, “should”, “will”, “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements contained in this FAQ are based on current expectations and beliefs concerning future developments that are difficult to predict. We cannot guarantee future performance, or that future developments affecting us will be as currently anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.
You should not place undue reliance on any forward-looking statements and should not make an investment decision based solely on these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.