StartEngine has listed a new securities offering for Fanatics, a company that works with top sports properties by selling apparel, etc., by licensing the brands.
Fanatics also has entered the sports betting sector having acquired PointsBet sportsbook.
StartEngine notes that Fanatics has already raised $8.9 billion in private funding in the past. The company reports that Fanatics expects to report around $8 billion in top-line revenue for 2023.
The offering is being promoted by StartEngine Private, a service that caters to Accredited Investors.
According to the offering page, StartEngine has purchased shares on secondary markets and then created a bespoke LLC to hold the shares. Smaller, Accredited Investors may then invest by buying membership interest in the LLC. StartEngine generates revenue by charging fees, including carried interest.
Issued under Reg D, shares are being offered at $80 each, up to 3125 shares. The minimum investment is $14,960. According to the offering page, Fanatics was last valued at $31 billion in 2022.
There has been a bit of a trend for crowdfunding platforms to enable private deal rooms for Reg D offerings that operate more like traditional venture capital. Either a platform participates in a funding round, or they gain access to shares on the secondary market which they then sell to platform investors.
While limited to Accredited Investors, this can provide access for smaller investors to more mature firms which can lower risk (as compared to a startup). At the same time, it is an opportunity for a platform to generate more revenue by participating in larger, more established deals.
StartEngine is currently offering a waitlist for investors to participate in the Fanatics offering.
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