NY-based Portero has raised $6.6 million in VC funding in a round led by LFE Capital and joined by return backers like The Grosvenor Funds. The company, founded in 2004, operates an online marketplace and auction service for branded and authenticated luxury goods from more than 180 brands.
Portero.com offers pre-owned vintage and new goods, with a focus on watches, handbags, accessories and jewelry, all certified authentic and often in original packaging. To verify authenticity of goods, Portero draws on the experience of in-house specialists, by working with outside experts, and in some cases even by partnering with selected luxury brands directly.
As Leslie Frécon, CEO of LFE Capital and a fresh Portero board member, notes in the news release, this is an industry rife of counterfeits. If Portero manages not to screw up and remain a trusted brand, they’ve got something going for them.
it’s great to see websites like this, it’s hard to buy luxury goods these days without coming across counterfeits. Authenticity is such a big thing to luxury brand buyers. PLUS when brand new luxury goods are hard to reach, there’s always the 2nd hand stuff which they sell.
TechFilipino
Wow. VC gullibility never ceases to amaze me.
We are in a recession. Luxury goods spending is way down. The share price of established luxury companies like Sotheby’s (BID) is at all time lows.
And they put in 6 million in this?
Anjali Sen
agree. Global recession is just starting, lets invest in luxury goods!
What… a guy/girl earning low 6 figures is gonna start shopping for a Timex watch at Walmart?
This whole “sky is falling” mentality is needs to stop.
No – but I’m sure everyone will be more cautious on how they spend.
I’m just surprised the “market size” slide made the cut given reports like this from Bain/Co.:
http://www.bain...r_the_media.asp
Long term I think it’s great, but the next two years will be tough.
There are people who understand the global consequences of debt leveraging and are planning accordingly and there are those who think we’re going through a ‘mental recession’.
Hello and good day,
it is fantastic to see such a good website like this.
Luxury is only for the rich people…
I am a usual citizen and I won`t be able to pay such an amazing value!
Thanky you and have a nice day
Guys, please explain. What is the startup on this site?! It’s seems like regular site which is not unique at all.
I know of another site, http://www.trendora.com that is a marketplace for luxury goods.
I agree with Francis Simisim, I think this is a great website. Whomever had $8k to spend on a watch before the recession, still does. I work at a jewelry store and I see people throw down $100k on a piece of a jewelry. The rich get richer, and there’s no denying that.
Hey guys do you know that “portero” is a spanish word that means: “the guy that cleans your buildings floor and doors”. “portero” came from “puerta” and it means the one that is at the door at your building entrance, the point is that it´s very funny to see a luxury goods site called “portero” is like the antimarketing, its like the Zoolander “Derelicte”. Well but who knows in internet everything is possible.
I serve as Portero’s Chief Information Officer and posted a response on my blog.
http://spf13.co...ises-66-million
I think it’s important to recognize that Portero.com is the only place where one can purchase certified authentic luxury goods online.
what about @ the brands websites? or eluxury?
Thanks,
To clarify…
*certified authentic pre-owned and vintage luxury goods online.
Steve- You seem to have a mixed message. On one hand your trying to sell preowned goods but
and on another your trying to build authorized brand name luxury portal like Vialuxe. Frankly, I don’t think your concept will succeed. I think
people want to shop with individual stores that are authorized dealers and give exceptional service! A luxury portal cannot do this.
What are these VCs smokin? eTailers are not worth 1x revenues even today. This is not a VC play.
Great comments!!
Alejandro – we like to choose the Portero meaning of “gatekeeper”. The founder chose this name to reflect our process in Authenticating All items vs a wide open wild west marketplace that stings consumers with the rampant selling of counterfeit. Also the meaning of “Doorman” is one we embrace as Portero offers excellence in customer service as is reflected by a great doorman.
Smart Babes & Mathew – Portero is a luxury market platform not a luxury brand. In today’s economy consumers are searching for great values and to purchase lasting assets. Buying authentic pre-owned luxury items (and new – prestine) that hold their value is a good option (oh, and you can wear it! Heck I wish I had all my 401k all in Pre-Owned items like Birkin Bags, Panerai & Cartier watches over the past many months, instead of my lovely Smith Barney Managed Equities Account!).
At the same time in this economy luxury vendors (dealers, brands & consumers) are looking to aggressively sell (pre-owned, new, vintage) because of need to liquidate or trade up.
We facilitate that market exchange, in a fun luxury environment and certify everything to be authentic and guarantee it. “Portero provides certified dealers, vendors and brands a unified selling platform that maintains brand and item integrity and the assurance of authenticity and provides consumers a variety of luxury shopping experiences.”
Our capital use will be to roll out new technology platform experiences (Auction, eCommerce, Private Sale, Item of the Day…) over the next weeks and months as the current site was built only to prove out our model and we feel it can be greatly enhanced in many ways. We are also creating a new technology platform to allow a combination of seamless authentication and for our “vendors” to easily increase their item selection across the Portero site.
B
Bob Schwartz, CEO | Portero
Looking at Portero’s watch selection we found numerous examples of false descriptions under watches for sale.
If accuracy is a desired quality when selling expensive, often-faked merchandise, then Portero has a long way to go.
Good luck!
Initially I thought this was insane given the finanical situation, but I’ve changed my mind. Much of the current problems are about a crisis of trust, or “counter party risk”. People no longer trust their bank, their investment fund, the value of their currency, even their government.
In this environment trusted parties are invaluable. If Portero can leverage the trust it has from it’s customers, which is essentially what their business is, they’ll do very well even as net global luxury goods demand declines.
They could even sell gold and it would fit in with their other products and tap into the current zeitgeist of people looking for stores of wealth.
J
Congrats for the team and especially Bob who came on board not so long ago.
I think this is a very unique website and I’m excited to see the new functionalities!
I Agree with J.” trusted parties are invaluable”. Portero has captured the trust in the luxury goods market. That’s what makes Portero a great site even with our current financial situation. Daniel Nissanoff helped in the building of Portero and wrote a great book called Futureshop (http://www.auctionculture.com) explaining Portero’s mission. This book was one of the inspirations for our statrup.
SJ
YouAuction.com
I also own a luxury goods commerce site (December 2008 launch), and think that these types of curated private party sales are the way to go.
Excellent idea.
1. Wise investors do not invest for the next 2 year, they do looking 5-7 years out, so if you’re looking at the market now and investing then you’re a bank, not a VC.
2. My concern is that with the initial seed and A-round traffic is not significant. (Compete shown only around 45k users, and Quantcast estimates 28k users)
3. The name really does not lend itself to a luxury brand. Great site and model though.
Best of luck guys.
Congrats Bob!!
If they have raised enough money, then they can survive the next 18 months and be will positioned. Their model is good: be the platform to enable the commerce on luxury product. Another company, called 1stDibs, is also doing this and growing.
I also think there is another revenue stream they can add over time – branded advertisers, just like Amzn and others have done. The Portero audience will be in demand from advertisers.
I also think that Bob S. understands challenges and has the right experience.
Until large design houses like LVMH or Gucci Group elect to endorse these resellers as licensed venders I don’t believe there is a vast a difference among these sites as Portero would lead one to believe.