Auctionata gets $20.2 million for live online auctions

The online auction platform specializes in fine art and antiques

These days, eBay is putting much more emphasis on its marketplace, but back in the day, it was exclusively an online auction site. The problem: there was (and is) quite a bit of fraud. But that’s one of the downsides of trying to mix a peer-to-peer marketplace with rare artwork and antiques.

A new company is offering a more secure and reliable online bidding experience. Auctionata sources and appraises items before putting them up for grabs in an online auction, and on Tuesday, the company announced a €15.5 million ($20.2 million) round of funding led by the venture capital firm Earlybird. Existing investors include Bright Capital, Kite Ventures, HV Holtzbrinck Ventures, eVenture Capital Partners, and the ­­­­­­Raffay Group.

There are a few key differences between Auctionata and other online auction sites. For starters, Auctionata has actually patented its live auction technology, which essentially uses video to mirror the feel of being in an actual auction house. Auctions are held every Friday evening and users can participate from home, bidding on rare, one-of-a-kind antiques and artwork from their living room.

The other key difference is that Auctionata—unlike eBay and other marketplaces—sources its items from private sellers and reputable art dealers. The company also uses a network of more than 250 experts to appraise and evaluate the items it puts up for auction, and it offers a 25 year guarantee of authenticity on all objects sold.

Fine art represents a $55 billion market worldwide, and in the U.S., there are more than 4,500 auction houses.

Last September, Auctionata launched an online store for art and antiques that charge a pretty penny. Zacke says that only the rarest items go up for auction, while others are sold in the shop.

Auctionata CEO Alexander Zacke says that Auctionata’s user base is 60% male, between the ages of 50 and 60, and they tend to be in the top 10% of incomes. Buyers come from Western Europe, China, the U.S., and Russia.

With offices in Berlin and New York, Auctionata has 100 employees and plans to use the new capital to fuel global expansion, recruiting, and grow its technology platform.

In June, Auctionata will become the first German online auction house to sell an original watercolor by Egon Schiele, which will start at $1.5 million.

“We look for companies with the potential to be global market leaders. Auctionata sells objects that attract interest worldwide – up to and including the level of Egon Schiele. No other online vendor serves this market segment. Auctionata’s business model was developed by two founding figures with decades of experience in both the art market and online business,” said Earlybird co-founder and partner Dr. Christian Nagel, in a statement.