eBay invested in a sporting goods marketplace called SidelineSwap through its corporate venture division called eBay Ventures. It’s not the first time eBay Ventures invested in a rival marketplace – in January it had invested in Cudoni, a UK “luxury resale platform.” It also invested in Notable Live, saying it would bring exclusive player merchandise, non-fungible tokens (NFTs) and experiences to the eBay platform.
As we noted in that January post, while venture capital investments are typically risky, they provide eBay a foot in the door if the startup is successful – and if one of the startups becomes the next big thing, it could result in a sizeable payoff. That was not the case for Cudoni, however, which shut down in the spring citing the economy, writing in part: “the market and the world has seen unprecedented change and the rising cost of living and economic crisis have been difficult to ride out for every start-up, not just ourselves.”
eBay Ventures announced its recent investment in SidelineSwap last week, which it referred to as the premier online marketplace for new and used sporting goods. “SidelineSwap, which launched in 2015, enables resale wherever sports enthusiasts shop or play, both through its peer-to-peer online marketplace and through its trade-in partnerships with retailers and brands,” it explained.
Dawn Block, eBay’s VP of Collectibles, Electronics and Home, said eBay Ventures’ investment in SidelineSwap represented its continued focus on circular economy and resale innovation and its shared commitment to sustainability, affordability and best-in-class experiences for enthusiast buyers and sellers.
SidelineSwap will use the investment to expand its trade-in platform and continue building the leading online marketplace in sports. The collaboration between eBay Ventures and SidelineSwap “will empower both companies to better serve the sporting goods community.”
Midas’ Touch eBay is not.
another scheme doomed for failure
Any port in a storm!