New York Giants quarterback Daniel Jones in action against the Atlanta Falcons at MetLife Stadium on September 26, 2021 in East Rutherford, NJ
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Yield Street, an alternative investment platform that aims to give more people access to assets such as real estate, art and marine finance, has entered into a multi-year sponsorship deal with the New York Giants, has the company told CNBC.
Yieldstreet will promote its brand on signage at MetLife Stadium in East Rutherford, New Jersey, where the Giants play their home games. The New York-based company will also be able to feature the Giants as a partner in its marketing materials.
The deal is worth around $ 1 million in total, said knowledgeable people who have asked not to be named because they are not authorized to speak publicly about it.
Milind Mehere, the CEO of Yieldstreet, told CNBC in an interview that the company is trying to build awareness and that “the best way for us to start is with a mainstream brand.” He said the National Football League and the Giants are attracting “the right demographics.” And small businesses also benefit from a large sports audience on television and at the Giants Stadium, which is among the largest in the NFL.
Founded in 2014, Yieldstreet offers users access to non-traditional investments that are typically reserved for institutions like hedge funds or affluent family offices. Assets are typically private loans in industries such as real estate, shipping, art, finance, and aviation.
Yieldstreet said it has repaid more than $ 1 billion in principal and interest and currently has more than 300,000 users on its platform. The company raised $ 100 million in June for a valuation of around $ 800 million, according to PitchBook. Billionaire investor George Soros is one of the early funders and Tarsadia Investments led the last round.
Mehere said the company is considering go public through a reverse merger, partnering with a special purpose acquisition company in a year or two.
Yieldstreet co-founders Milind Mehere (L) and Michael Weisz
Source: Yieldstreet
Digital investment platforms were already popular but have grown tremendously during the coronavirus pandemic, with consumers flocking to easy-to-access sites like Robinhood and Coinbase.
Yieldstreet seeks to increase awareness so that investors who have become familiar with mobile financial services recognize other places where they can put their money. Last year, the company worked with BlackRock, the world’s largest asset manager, to launch its Prism fund, which gives investors access to a wide range of securities.
“What consumers are demanding now is that day-to-day technology can put them on the same footing as sophisticated investors,” Mehere said. “As the Giants’ investment platform, we tell this story – it’s time to modernize your portfolio. Alternatives should be part of every portfolio, just like for the richest 1% and institutional investors. . “
Yieldstreet said in its most recent funding round that the money will be used to expand its user base, add products and enter international markets. The company said it plans to reach $ 100 million in revenue in 2021
The Giant’s deal is Yieldstreet’s first with a professional sports team, although he has partnered with an individual athlete. In August, the company announcement a campaign with Washington Wizards goaltender Spencer Dinwiddie to “promote financial literacy around alternative assets”.
Mehere said other deals with a New York-based sports team are in the works.
The Giants started the NFL season 1-4 after fall to the Dallas Cowboys 44-20 on Sunday. The team is heading home to face the Los Angeles Rams this weekend.
– CNBC’s Maggie Fitzgerald and Hugh Son contributed to this report.
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