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.