Two VCs See Trading Cards as a Great Investment and are Starting a Fund to Trade Them

Ben Bergman

Ben Bergman is the newsroom's senior finance reporter. Previously he was a senior business reporter and host at KPCC, a senior producer at Gimlet Media, a producer at NPR's Morning Edition, and produced two investigative documentaries for KCET. He has been a frequent on-air contributor to business coverage on NPR and Marketplace and has written for The New York Times and Columbia Journalism Review. Ben was a 2017-2018 Knight-Bagehot Fellow in Economic and Business Journalism at Columbia Business School. In his free time, he enjoys skiing, playing poker, and cheering on The Seattle Seahawks.

Two VCs See Trading Cards as a Great Investment and are Starting a Fund to Trade Them

As early investors in buzzy startups like Lyft, SpaceX, Pinterest and Ring, Courtney and Carter Reum have gained a reputation as successful venture investors. Now they are devoting some of their attention and dollars to a decidedly lower tech investment: trading cards. After dabbling in cards as a hobby since they were kids growing up in the Midwest, the brothers want to use what they have learned as VCs to start a fund to procure undervalued cards they hope will someday score big returns.

"Applying that kind of rigor to something that has usually been done by young kids or emotion...I think that's how you get unfair advantages and outlier results," explained Courtney Reum. "I don't want to just dabble a couple hours a week. I want to be with people who really want to actually do this in an analytical way."


The Reums are making what they describe as a "meaningful" contribution to a multimillion dollar fund called Mint 10. They view it as a way to diversify their holdings away from illiquid shares in startups that won't pay off for years – if they're lucky – and equities, which they see as overvalued.

"I see this as a great alternative class, somewhere closer to a stock, albeit a little less liquid but more so than my venture and private equity stuff," said Courtney Reum. "To me, there's not much to find in the stock market that's a good deal."

A study last year showed baseball cards had a far superior return to stocks over the previous decade. The pandemic has triggered a frenzy in the card market, with huge spikes in trading and new records for coveted NBA rookie cards fetching more than a million dollars apiece.

The Reum brothers founded their Santa Monica-based early-stage consumer technology venture firm, M13, in 2016, after they sold their spirits business, Veev, for a hefty multiple to a St. Louis beverage conglomerate. M13 is now deploying its $175 million second fund backed by Virgin Group founder Richard Branson.

Reum thinks the still stodgy card industry is ripe for a shake up, eyeing big potential in influencers and creating content around the practice of "case breaking," the act of opening card boxes, which can draw big audiences on streaming platforms.

Reum, who remembers his mother driving him to card shows when he was 14 years old, views trading cards as similar to art, sports teams, Bitcoin or gold, which he's "bought a bunch of lately." What do all those assets have in common? There's a finite supply, which Reum believes inevitably drives the price up over time.

"I generally believe that something like gold or baseball cards, depending who you are, could be a couple percent of your allocation, up to like 10 percent," Reum said. "I think this is just as viable as gold or bitcoin or any of that."

Mint 10 will hedge its bets by buying a mix of cards from the three major sports that are both old and new.

"It's no different than how a long/short fund does their allocations," Reum said. "We have LP [limited partner] interest coming out of our ears."

Reum would not specify how large the fund will be or what his and brother's contribution is, owing to the fact that they are still fundraising. "It will be a multi-million dollar fund but we haven't finalized the amount yet," he explained. "We have a lot of interest but we want the strategy to dictate the raise vs the inverse, which is sometimes the case."

Courtney and Carter Reum are devoting some of their attention and dollars to Mint 10, an investment fund focused on trading cards.

The Reums are not alone in their newfound enthusiasm for trading cards. Just as people bored at home with extra cash in their pockets drove a wave of day trading, card sales have been on a tear during the pandemic.

During the first few months of the coronavirus outbreak, sales of basketball cards on eBay spiked more than 130%. Baseball cards saw a 50% spike while football cards had a 47% increase.

In July, a LeBron James rookie card shattered the record for a modern day NBA card, going for $1.8 million. But the record stood for only a few months as last month a card of Milwaukee Bucks forward Giannis Antetokounmpo fetched $1.812 million. (The card previously sold for $7,000 on eBay, but the buyer reportedly returned it because of a yellow stain.)

"I think you're going to see sales records over the next 12 to 16 months that shock the world," said Scott Keeney, a DJ, entrepreneur, and trading card expert who the Reums brought in to run the new fund. "I've seen more VC activity in the last four-to-six weeks around the card space than I would have ever dreamed."

Keeney compares Mint 10 to funds trading fine art, but he sees a much bigger upside in cards because of people like Reum, who have traded them since they were kids.

"This generation who grew up in the Junk Wax Era now has disposable income to spend," Keeney said. "Would they rather spend all this money on a piece of art that hangs on the wall that they might not be that tied to? Or do they want to own Magic Johnson's rookie card if they're a Lakers fan?"

Though most trading is done online these days, Keeney, along with fellow DJ, Steve Aoki, opened a brick and mortar card card shop last month in Hollywood, Cards and Coffee, featuring over $2 million worth of inventory.

With a widely accepted grading system and limited supply, the trading card market has come a long way from the scandals that scared away collectors in the 20th century. But the industry still has problems. Last year, the FBI launched a criminal investigation into the world of baseball card collecting that included the largest seller of cards on eBay.

"This doesn't sour us on the market one bit," Reum said. We are obviously aware of this process of attempting to cheat the system, and are diligent in research to avoid this scenario. However, we actually are glad this incident came to light and was taken seriously by the FBI."

The Card Reum Will Never Sell

On a recent Zoom video call conducted just after he had returned from a business trip to Austin, Reum excused himself and said there was something he wanted to show. He darted off screen and returned holding up a framed oversized 1985 Michael Jordan Interlake card.

He pointed to the bottom right hand corner where the words "Interlake Youth Incentive Program" were printed in small lettering. The card holds a great deal of significance for Reum because his father, W. Robert Reum, was an executive at The Interlake Corporation before becoming president and CEO in 1990.

The company signed on as a corporate sponsor of the Bulls in 1984. As someone who now spends a lot of time thinking about how consumer-focused startups should market themselves, the move still baffles him.


"Given they were a B2B diversified industrials company, whomever was running their marketing probably should have been fired for such a sponsorship," Reum laughs. "The Bulls were the worst team in the league, there was no internet for people to discover the company, and it was hard to see how the sponsorship would help sales of Interlake products. However, the sponsorship did come with eight floor seats. The year following the deal, the Bulls drafted Michael Jordan and the rest is history."

W. Robert Reum died two years ago at the age of 74 from complications from cancer and Reum has a hard time not getting choked up looking at the card.

"To me, it is a really personal way to honor my dad," he said.

The card is worth around $20,000 and could soar in value to half a million dollars if it is seen as Jordan's rookie card, according to Keeney. But this is one card Reum will never sell. He wants to acquire more of them.

https://twitter.com/thebenbergman
ben@dot.la
Can Technology Outpace Wildfires?

🔦 Spotlight

Hello, LA!

This week, tech headlines are buzzing with OpenAI's launch of Operator, a tool that promises to transform task automation, and TikTok’s major outage, which left millions disconnected. But closer to home, as wildfires blaze across Southern California, survival has become the focus—and technology is making it possible.

When the plume of smoke reappeared on the horizon, residents across Southern California turned to tools like Watch Duty. Over the past week, as flames surged, the app gained 600,000 new users in just one night, delivering critical, real-time information to help residents stay ahead of danger. Watch Duty, designed to provide wildfire updates, has proven to be much more than an alert system. It’s a lifeline.

The app integrates live data, satellite imagery, and community reports to send updates directly to users. Information includes fire locations, evacuation orders, and air quality indices, empowering quick, informed decisions. Its community-driven ethos—with contributions from locals, firefighters, and volunteers—ensures hyper-local and timely updates, filling gaps where traditional news outlets often fall short.

Image Source: Watch Duty

A New Era of Fire Alerts

Watch Duty redefines wildfire preparedness through technology and collaboration:

  • Fire Detection: Monitors data from satellites, agencies, and ground sources to identify wildfires.
  • Data Verification: A team of experts ensures reported activity is accurate.
  • Real-Time Alerts: Notifications are sent within 60 seconds of detection.
  • Community Contributions: Local residents provide photos and updates.
  • User Notifications: Alerts include fire size, location, and evacuation details.

These features make Watch Duty an indispensable tool during wildfire season. In 2024, the app processed over 2 million alerts and supported 50,000 evacuations, with plans to expand predictive modeling by 2025 to anticipate threats before they escalate.

Innovations Reshaping Wildfire Management

Early Detection Leaders:

  • AlertCalifornia: Operates over 1,000 cameras with machine learning to monitor high-risk areas.
  • Pano AI: Uses cameras and sensors to detect smoke and alert responders.
  • Torch Sensors: Deploys heat-detection sensors to identify anomalies early.

Image Source: Torch Sensors

Predictive and Analytical Pioneers:

  • Chooch AI: Employs drones and computer vision to monitor fire hazards.
  • Data Blanket: Uses analytics to forecast fire behavior and assist evacuations.
  • Rain: Leverages advanced atmospheric sensing and AI-driven technology to provide precise fire detection and tracking. Its real-time data on fire weather conditions and environmental factors helps agencies anticipate and respond to wildfires with greater efficiency.
  • SCEPTER: Tracks air quality and wildfire emissions using AI and satellite data.

Image Source: Rain

A Vision for the Future

As Los Angeles continues to adapt to the realities of a changing climate, tools like Watch Duty, Pano AI, and AlertCalifornia are proving to be invaluable. These technologies are not just reactive measures; they represent a shift toward proactive disaster preparedness. The question now isn’t whether technology can help but how much more it can achieve in the years to come.

With the integration of predictive modeling, AI, and real-time data, there’s hope for a future where wildfires are no longer unpredictable forces of destruction. Imagine every household equipped with predictive wildfire maps, heat-detecting drones, and AI-driven tools to guide safety decisions. The innovations are here—it's up to us to support and scale them to ensure they reach the communities that need them most. Which company, which app, or which breakthrough will emerge as the next lifeline? The possibilities for a safer, more prepared Los Angeles feel closer than ever.

🤝 Venture Deals

LA Companies

  • Favorited, a new livestream app positioning itself as an alternative to TikTok, has raised a $1.3M Pre-Seed from HF0, Soma Ventures, and several angel investors from the entertainment and social space. The platform, which participated in the a16z Speedrun accelerator program, offers features like streaks and leaderboards to boost user engagement. Favorited plans to use the funds to enhance its app's functionalities and expand its user base. - learn more
LA Venture Funds
  • Overture VC participated in a $12M Series A funding round for Bedrock Energy, an Austin, Texas-based startup specializing in geothermal heating and cooling systems. Bedrock Energy plans to use the funds to advance its geothermal technologies and expand deployments in Colorado, Utah, and neighboring states. - learn more
  • Navigate Ventures LLC participated in a $7.2M Series A funding round for XILO, a San Diego-based insurance technology startup that provides a quoting and sales automation platform to help independent insurance agencies convert the next generation of insurance shoppers; the funds will be used to scale operations, manufacturing, and commercial efforts for its acne products. - learn more
  • Upfront Ventures participated in a $5.25M Seed funding round for 1up.ai, a New York-based company that automates knowledge for sales teams; the funds will be used to empower their growing customer base, including industry leaders like WalkMe, Gladly, and Deliveroo. - learn more
  • MTech Capital participated in a $2.2M Pre-Seed funding round for Qumis, a Chicago-based AI platform designed to transform insurance knowledge work; the funds will be used to scale its AI capabilities, accelerate product development, and expand its customer base. - learn more
  • Amboy Street Ventures participated in a SEK 304M Series B funding round for Gesynta Pharma, a Stockholm-based pharmaceutical company specializing in anti-inflammatory and pain-relief treatments, with the funds directed toward advancing a Phase II clinical trial of their lead candidate, vipoglanstat, for endometriosis. - learn more

LA Exits

  • Bandy Manufacturing, a Los Angeles-based provider of aerospace fasteners and components, has been acquired by Novaria Group to enhance its portfolio and expand its capabilities in the aerospace and defense industries. - learn more
  • Pangea, a company specializing in eco-friendly and sustainable products with a focus on innovative technology solutions, is being acquired by Nature's Miracle Holding Inc. to accelerate growth and capitalize on synergies in sustainability and tech-driven product development. - learn more
  • Notisphere, a healthcare communication platform streamlining recall and alert management, has been acquired by Par Excellence Systems to enhance its capabilities in delivering efficient supply chain solutions for the healthcare industry. - learn more
  • Cryogenic Machinery Corp., a North Hollywood, California-based manufacturer specializing in cryogenic pumps for industrial gas and energy applications, has been acquired by PSG, a Dover company, to enhance PSG's portfolio of specialized fluid handling solutions. - learn more

Download the dot.LA App

The New Face of Live Shopping: Whatnot’s $5B Journey

🔦 Spotlight

Hello Los Angeles,

This week has been a challenging one for many in our city as we continue to face the aftermath of the recent wildfires. Recovery efforts are in full swing, and as always, the strength and resilience of our community shine through.

If you or someone you know has been impacted, there are resources available to help navigate this difficult time:

  • Pacific Palisades Fire Damage Maps: View here

These tools can provide support, whether you’re looking for financial assistance, housing resources, or updates on affected areas.

While our community focuses on recovery, we’re also reminded of what makes LA unique: its unrelenting drive to build, create, and innovate. A great example this week comes from Whatnot, the live shopping platform co-founded in 2019 by Grant LaFontaine and Logan Head, which has just achieved a major milestone.

Whatnot announced it raised $265 million in Series E funding, valuing the company at an impressive $5 billion.

For those unfamiliar, Whatnot combines shopping and entertainment through live-streamed auctions. Think of it as a vibrant, interactive marketplace where sellers showcase everything from trading cards and collectibles to fashion items, all in real time. Buyers can bid during the stream, creating a sense of excitement and connection that feels more personal than traditional online shopping.

The company’s new funding—co-led by Greycroft, DST Global, and Avra Capital—will drive expansion into markets like Australia and bring improvements to seller tools, from inventory management to advanced analytics. But what stands out most is Whatnot’s focus on its people. CEO Grant LaFontaine announced plans to buy back $72 million in shares for long-term employees, a move that underscores the company’s dedication to sharing its success.

As we move forward, let’s celebrate stories like these that show how innovation thrives in LA—even amid challenges. Whether it’s supporting wildfire recovery, building the next great startup, or simply connecting with others, we each play a role in shaping the spirit of our city.


🤝 Venture Deals

LA Companies

  • Phase Four, a leader in advanced in-space propulsion systems, announced the first close of its Series C funding round, securing nearly 60% of the target raise, led by Artemis Group Capital, to ramp up production of its Valkyrie Hall Effect Thrusters to at least 250 units annually and develop cutting-edge propulsion technologies for defense and national security needs. - learn more
  • Proper, a next-generation supplement brand launched by fitness entrepreneur Amanda Kloots, secured investment from Ben Bennett's Beauty Accelerator, The Center, to redefine the supplement industry with innovative, nutrient-focused wellness solutions tailored for modern lifestyles. - learn more
LA Venture Funds
  • Sound Ventures participated in a $17M funding round for Reshop, a platform simplifying the returns process for consumers and merchants, with plans to use the funds to enhance their technology and expand their services. - learn more
  • LFX Venture Partners participated in a $30M strategic funding round for Shippeo, a Paris-based company specializing in real-time multimodal supply chain transportation visibility; the funds will support Shippeo's global expansion, particularly across North America and the Asia-Pacific region. - learn more
  • Amboy Street Ventures participated in a $15M Series A+ funding round for Granata Bio, a biotechnology company focused on developing advanced gene therapies; the proceeds will be used to accelerate the development of their pipeline and expand their research capabilities. - learn more
  • BAM Ventures participated in a $700,000 seed funding round for MX Locker, an online marketplace for buying and selling motocross gear and parts; the company plans to use the proceeds to enhance its platform and expand its user base. - learn more
  • Crosscut Ventures participated in a $7.15M seed funding round for SoloPulse, an Atlanta-based company developing advanced radar technology; the funds will be used to enhance their product development and expand market reach. - learn more
  • Starburst Ventures participated in Loft Orbital’s $170M Series C funding round, bringing the San Francisco-based satellite infrastructure provider’s total capital raised to $280 million, with the funds aimed at accelerating their "condosat" missions to simplify and expand access to space. - learn more
  • Overture VC participated in a $100M Series B funding round for Harbinger, a Southern California-based electric vehicle company specializing in medium-duty EVs; the funds will be used to accelerate the production of their electric vehicle platforms. - learn more
  • Muse Capital and Time BioVentures participated in an $18M Series A funding round for Conceivable Life Sciences, a New York-based biotech company developing the world's first AI-powered automated IVF lab; the funds will support their ongoing commercial pilot program in Mexico City and preparations for a U.S. launch targeted for early 2026. - learn more
  • B Capital Group participated in a $25M Series B funding round for Labviva, a Boston-based AI-driven procurement platform for life sciences; the funds will be used to accelerate product development, enhance marketing and customer support, and expand internationally. - learn more
  • Focalpoint Partners participated in a seed funding round for Kerna Labs, a San Francisco-based AI biotechnology company focused on advancing mRNA payload design for new therapies, with the funds supporting operational expansion and development efforts. - learn more

LA Exits

  • Intracom Systems, a pioneer in software-based communication solutions, has been acquired by IPC, a global leader in trading communications technology, to enhance IPC's SaaS communications offerings for the financial services industry. - learn more
  • Adexa, a provider of advanced supply chain planning solutions, has been acquired by Eyelit Technologies to enhance its Manufacturing Operations Management (MOM) and Manufacturing Execution Systems (MES) offerings and expand its market presence. - learn more
  • Caramel, a platform specializing in simplifying online vehicle transactions, has been acquired by eBay to enhance its offerings for secure and streamlined automotive buying and selling experiences. - learn more
  • ImaginAb, a biotechnology company specializing in antibody-based imaging and therapeutic solutions, has been acquired by Telix Pharmaceuticals to expand its next-generation therapeutic assets and biologics technology platform. - learn more
  • Sleepypod, a global leader in crash-test-certified safety harnesses and carriers for pets, has been acquired by Paw Prosper to enhance its commitment to pet well-being and expand its portfolio of innovative pet safety solutions. - learn more

Download the dot.LA App

Standing Together Through the Flames

🔦 Spotlight

To our Los Angeles family,

This week’s wildfires have brought immense pain and hardship to our beloved city. Many of our friends, neighbors, and colleagues have faced evacuations, power outages, and the devastating loss of homes and livelihoods. Our hearts go out to everyone affected by this tragedy.

At dot.LA, we want to express our deepest sympathy to those suffering in this moment. We see your resilience and stand with you during this challenging time. This community has always been defined by its strength and compassion, and now is the time to come together in support.

If You or Someone You Know Has Been Impacted, Resources Are Available:

Evacuation Shelters:

  • Calvary Community Church: 5495 Via Rocas, Westlake Village, CA 91362
  • Ritchie Valens Recreation Center: 10736 Laurel Canyon Blvd., Pacoima, CA 91331
  • Pan Pacific Recreational Center: 7600 Beverly Blvd., Los Angeles, CA 90036
  • Westwood Recreation Center: 1350 Sepulveda Blvd., Los Angeles, CA 90025
  • Pasadena Civic Auditorium: 300 East Green Street, Pasadena, CA 91101
  • Pomona Fairplex: 1101 W McKinley Ave, Pomona, CA 91768
  • Stoner Recreation Center: 1835 Stoner Ave, Los Angeles, CA 90025

Animal Shelters:

Small Animals:

  • Agoura Animal Care Center: 29525 Agoura Rd, Agoura Hills, CA 91301
  • Baldwin Park Animal Care Center: 4275 Elton St, Baldwin Park, CA 91706
  • Carson Animal Care Center: 216 W Victoria St, Gardena, CA 90248
  • Downey Animal Care Center: 11258 Garfield Ave, Downey, CA 90242
  • Lancaster Animal Care Center: 5210 W Ave I, Lancaster, CA 93536
  • Palmdale Animal Care Center: 38550 Sierra Hwy, Palmdale, CA 93550

Large Animals:

  • Pomona Fairplex: 1101 W McKinley Ave, Pomona
  • Industry Hills Expo: 16200 Temple Ave, City of Industry, CA 91744
  • Antelope Valley Fair: 2551 W Avenue H, Lancaster, CA 93536
  • Los Angeles Equestrian Center: 480 W Riverside Dr, Burbank, CA 91506
  • Pierce College Equestrian Center: 7100 El Rancho Dr, Woodland Hills, CA 91371

Disaster Relief Information:

  • LA County Assessor: Information for property owners and FAQs about disaster relief.

Mental Health Support:

  • Los Angeles County Department of Mental Health: Crisis counseling and support for those affected. Access services through their website or call their hotline at (800) 854-7771.

Temporary Housing Support:

  • Airbnb: In partnership with 211 LA, offering free temporary housing for displaced residents. Spaces are limited; complete the form to be notified of availability.

Transportation Support:

  • Uber: Use promo code WILDFIRE25 for 2 free rides up to $40 each to/from active shelters.
  • Lyft: Code CAFIRERELIEF25 offers 2 rides up to $25 each for up to 500 riders, valid until 1/15.
  • Metro: Fare collection is suspended systemwide.

Staying Informed:

  • Watch Duty App: Provides real-time wildfire tracking, evacuation warnings, and updates.
  • Los Angeles Fire Department Alerts: Visit their website for the latest information on fire status and safety guidelines.

Safety Precautions:

  • Ready, Set, Go!: Personal Wildfire Action Plan by the Los Angeles County Fire Department.

To those in our community who are volunteering, donating, or offering aid in any form—thank you. Your efforts embody the spirit of LA: strong, compassionate, and unstoppable.

At dot.LA, we’re committed to amplifying stories of resilience and support. If you’ve seen inspiring acts of kindness or have resources to share, please let us know. Together, we can shine a light on the incredible ways this community is stepping up during these trying times.

In the days ahead, let’s hold tight to the bonds that unite us and remember that we are stronger together. The fires may scar the land, but they cannot dim the collective spirit of Los Angeles.

We’re here for you, and we’re with you.

    Download the dot.LA App

    RELATEDEDITOR'S PICKS
    Trending