Wine Collecting Pay gets some bucks from Vinfolio

Steve case the former AOL Time Warner chairman and the VC of Revolution firm recently announced funding to the new site Vinfolio that merges a wine store with a wine collector community site.

It’s a San Francisco company that was founded in 2003 and restructuring in January.  Vinfolio had approximately raised $11 million including $4.5 million from Panaroma Capital before restructuring due to slow market for luxury goods that undermined the business.

Investors and entrepreneurs are seduced by the idea of running a fine wine company but there are definitely hurdles to creating a profitable business in the space. It is a tough market for wine collectors and disposable income is still at a premium with plenty of competition.  Sotheby’s that sells fine art auction house which also sells collectible wines dominates the auction scene for liquid bliss.  It is known that Case put $10 million into another luxury business, Exclusive Resorts.

The money in a wine collector’s pocket is always looking for a home. The economic recovery is still delicate but this seems like a smart move for down the road. This announcement was made last week but received little attention outside of a short post on TechCrunch.

via sothebys

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