Paddle8

Paddle8 was founded in May 2011 by Alexander Gilkes (a former LVMH executive and the chief auctioneer at Phillips auction house), Aditya Julka (an entrepreneur and Harvard Business School Baker Scholar), and Osman Khan (a banker with experience at Goldman Sachs and Perella Weinberg Partners and a Harvard Business School MBA).

Initially created as a broad platform for presenting exhibitions of contemporary art online,{{cite web|url=http://techcrunch.com/2012/02/08/founder-collective-makes-a-4-million-bet-on-paddle8s-online-marketplace-for-fine-art/|title=Founder Collective Makes A $4 Million Bet On Paddle8's Online Marketplace For Fine Art|website=TechCrunch|date=9 February 2012 }} Paddle8 refined its business model to focus solely on auctions. Paddle8 connects buyers and sellers of fine art, collectibles, design, jewelry, and watches through an online auction platform and an iPhone app. In 2014, Paddle8 sold more than $35.8 million worth of art, a 146% gain over the previous year.{{cite web|url=https://www.forbes.com/sites/natalierobehmed/2015/11/23/the-art-of-the-dealing-inside-paddle8-bid-to-become-the-internet-auction-house/|title=The Art of the Dealing: Inside Paddle8's Bid To Become The Internet's Auction House|first=Natalie|last=Robehmed|website=Forbes}}

Since its founding, Paddle8 partnered with over 300 non-profit organizations worldwide, from the Los Angeles County Museum of Art to the Brooklyn Academy of Music and the Guggenheim, to present their benefit auctions online, dramatically expanding their audience of supporters by tapping into Paddle8's community of 500,000 collectors. By January 2015, Paddle8 had presented more than 500 benefit auctions, with over $500m in bids.

In 2012, Paddle8 acquired online auction platform Blacklots.{{cite web|url=http://arrestedmotion.com/2012/12/overtime-nov-26-dec-2/ |title=Overtime: Nov 26 – Dec 2 « Arrested Motion |publisher=Arrestedmotion.com |date=2012-12-02 |accessdate=2013-06-27}} In May 2013, Paddle8 acquired an option to purchase a stake in Artnet.{{cite web|author=Paddle8's co-founders Aditya Julka and Alexander Gilkes |url=http://www.theartnewspaper.com/articles/Paddle-moves-to-buy-stake-in-Artnet/29603 |title=Paddle8 moves to buy stake in Artnet |publisher=The Art Newspaper |date=2013-05-20 |accessdate=2013-06-27}}

In December 2017 P8H Inc, the New York legal entity that owns and operates Paddle8, had been taken over by a syndicate of Swiss investors {{cite web|url=https://www.nytimes.com/2018/01/23/business/dealbook/paddle8-bitcoin-blockchain.html|title=Paddle8, Online Art Auctioneer, Is Merging With Swiss Tech Company|author=|date=23 January 2018|website=The New York Times}} that installed Izabela Depczyk as the interim CEO and the change manager at Paddle8 with the mandate to introduce and execute on the new business strategy for Paddle8.{{cite web|url=https://robbreport.com/muse/discoveries/paddle8s-izabela-depczyk-auction-house-of-the-future-2836237/|title=Paddle8's Izabela Depczyk on the Auction House of the Future=|date=21 December 2018|website=robbreport.com}}

In the first 10 months of 2018, Paddle8 realized a 21 percent growth compared to 2017.{{cite web|url=https://www.marketscreener.com/NATIVE-SA-73848/news/Native-Paddle8-s-Partnership-with-The-Native-Puts-the-Company-on-Growth-Trajectory-27531302/|title=Native : Paddle8's Partnership with The Native Puts the Company on Growth Trajectory {{!}} MarketScreener|last=MarketScreener|website=www.marketscreener.com|date=2 November 2018 |language=en|access-date=2019-06-04}} By summer 2019, under Ms. Depczyk’s leadership, Paddle8 ventured into new business areas, like gaming, and the company joined forces with new-media platform Highsnobiety for online sales of curated street art, artist’s collectibles, and street wear.{{cite web|url=https://www.galeriemagazine.com/womenofart/izabela-depczyk/|title=Women of Art: Izabela Depczyk=|date=13 August 2019|website= galeriemagazine.com}}

In August 2019 Pulse Evolution Group Inc, the US-listed company, acquired Facebank AG of Switzerland,{{cite web|url=https://www.otcmarkets.com/filing/html?id=13606761&guid=o0pSUeTzDw8cmth/|title=Form 8-K Current Report=|date=15 August 2019|website=otcmarkets.com}} subsequently renaming itself into Facebank Group Inc and becoming the largest shareholder of P8H Inc (Paddle8) through its holding of Facebank AG. In November P8H Inc appointed the new CEO Valentine Uhovski.{{cite web|url=http://www.artfixdaily.com/artwire/release/8162-paddle8-names-new-ceo/|title=Paddle8 Names New CEO=|date=19 November 2019|website=artfixdaily.com}} In March 2020, the board of Paddle8 filed for Chapter 11 in the Southern District of New York, on the heels of a recent lawsuit demanding payment for works of art sold. Paddle8 submitted a petition with various creditors listed, including Justin Bieber and his wife Hailey, to which they owe just over $73,000, and the Susan und Michael Hort´s Rema Hort Mann Foundation. Jay-Z´s Shawn Carter Foundation was also listed, and is owed around $65,000 for a charity auction that was also held in November.{{Cite web|date=2020-03-17|title=Paddle8 Is Filing for Bankruptcy—and It Owes Tens of Thousands of Dollars to Justin Bieber, Jay Z's Foundation, and Others|url=https://news.artnet.com/art-world/paddle8-bankruptcy-1806951|access-date=2021-04-27|website=Artnet News|language=en-US}} Other artists whose sales were also included in the auction in November are, among others, Tom Otterness, Kiki Smith, Jim Jarmusch and Jonas Mekas.{{Cite web|date=2020-03-18|title=One Week After Being Sued, Online Auction House Paddle8 Has Filed for Bankruptcy|url=https://observer.com/2020/03/paddle8-bankruptcy-auction-house/|access-date=2021-04-27|website=Observer|language=en-US}}

By October 2015, Paddle8 had raised $44 million from leaders from across the art, luxury, media, and tech industries.{{cite news|last1=de la Merced|first1=Michael|title=Online Auction House Aims to Give Big Houses a Run for Their Money|url=https://www.nytimes.com/2015/10/28/business/dealbook/online-auction-house-aims-to-give-big-houses-a-run-for-their-money.html|accessdate=3 November 2015|work=New York Times|date=October 28, 2015}} Paddle8's $4-million Series A round was led by Founder Collective {{cite web|url=https://techcrunch.com/2012/02/08/founder-collective-makes-a-4-million-bet-on-paddle8s-online-marketplace-for-fine-art/ |title=Founder Collective Makes A $4 Million Bet On Paddle8′s Online Marketplace For Fine Art |publisher=TechCrunch |date=2012-02-08 |accessdate=2013-06-27}}{{cite web|url=https://venturebeat.com/2012/02/08/paddle8-founder-collective-funding-fine-art/ |title=Paddle8 raises $4M series A led by Founder Collective to bring fine art online |publisher=VentureBeat |date=2012-04-27 |accessdate=2013-06-27}} and Mousse Partners.{{cite web |last=Ferro |first=Shane |url=http://www.blouinartinfo.com/news/story/886990/art-site-auctionata-nabs-202-million-in-venture-capital-is |title=Art Site Auctionata Nabs $20.2 Million in Venture Capital, Is Selling a Schiele |publisher=Blouin Artinfo |date=2013-04-04 |accessdate=2013-06-27 |archive-date=2013-05-11 |archive-url=https://web.archive.org/web/20130511160400/http://www.blouinartinfo.com/news/story/886990/art-site-auctionata-nabs-202-million-in-venture-capital-is |url-status=dead }}{{cite web|url=https://www.telegraph.co.uk/culture/art/art-news/9979752/Art-collectors-buying-more-online.html |archive-url=https://web.archive.org/web/20130412061843/http://www.telegraph.co.uk/culture/art/art-news/9979752/Art-collectors-buying-more-online.html |url-status=dead |archive-date=2013-04-12 |title=Art collectors buying more online |publisher=Telegraph |date= |accessdate=2013-06-27}}

In June 2013, Paddle8 announced $6 million in funding from new investors, including artist Damien Hirst, Prince Alexander von Fürstenberg, Russian mogul Vladimir Yevtushenkov, Matthew Mellon, and Jay Jopling, owner of White Cube.{{cite web|last=Kolodny |first=Lora |url=http://stream.wsj.com/story/latest-headlines/SS-2-63399/SS-2-247508/ |title=With Damien Hirst Backing, Paddle8 Aims to Do for Fine Art What StubHub Does for Tickets - Wall Street Journal - WSJ.com |publisher=Stream.wsj.com |date= |accessdate=2013-06-27}}{{cite web|url=https://techcrunch.com/2013/06/14/with-big-name-backing-and-some-ebay-flavor-these-startups-are-looking-shake-up-the-art-market/ |title=With Big-Name Backing And Some eBay Flavor, These Startups Are Looking To Shake Up The Art Market |publisher=TechCrunch |date=2013-06-14 |accessdate=2013-06-27}}

In October 2015, Paddle8 announced $34 million in Series C funding. New investors represented an array of notable figures from the worlds of technology, art and luxury, including newest Paddle8 board member David Zwirner, one of the most influential international art dealers; German collector and investor Rolf Sachs; Eric Fellner, co-chairman of Working Title Films; and Edgar Berger, Chairman and CEO International of Sony Music Entertainment. The round also saw participation from existing investors including Mousse Partners, Damien Hirst, Jay Jopling of White Cube Gallery; and Stavros Niarchos, a collector and entrepreneur.{{cite web|last1=Sorkin|first1=Andrew Ross|title=Paddle8's plans to disrupt auctions|url=http://video.cnbc.com/gallery/?video=3000439129|website=CNBC|date=28 October 2015|accessdate=3 November 2015}}

Paddle8 also partnered with non-profit institutions to host their benefit auctions online, opening up their fundraising prospects to Paddle8's global community of collectors. As of January 2015, Paddle8 raised more than $33 million for non-profit organizations around the world.{{cite web|url=https://www.wsj.com/articles/SB10001424127887324481204578177391210355294 |title=An Art Auction Site Tries a Charity Model - WSJ.com |publisher=Online.wsj.com |date=2012-12-13 |accessdate=2013-06-27}}

{{further|Auctionata}}

In May 2016, Paddle8 and Berlin-based online auction platform Auctionata announced that they would merge, creating a company with more specialties and broader international reach.{{cite news|url=https://www.nytimes.com/2016/05/12/business/dealbook/2-online-art-auctioneers-to-merge-and-go-global.html|title=2 Online Art Auctioneers to Merge and Go Global|first=Michael J. de la|last=Merced|work=The New York Times |date=May 12, 2016|via=NYTimes.com}} In September 2016 the joint company announced the appointment of a new CEO, Thomas Hesse.{{cite web|url=https://news.artnet.com/art-world/auctionata-paddle-8-announce-new-ceo-630326|title=Auctionata | Paddle8 Names New CEO|date=September 1, 2016|website=artnet News}} In February 2017, Auctionata declared insolvency and Paddle8 became an independent company once again, backed by private equity{{cite news |last1=Gerlis |first1=Melanie |date=24 February 2017 |title=When art dealers just won't name their price |website=Financial Times |url=https://www.ft.com/content/e4d3ab4e-f9ac-11e6-bd4e-68d53499ed71 |url-access=subscription |access-date=2023-02-13}} from a multi-family office called Lightyear Collective, which was incorporated in Delaware only in January 2017 and its members were not disclosed, but are known to include Christopher Hsu, the hedge fund manager who runs the Hong Kong-based Kilometre Capital Management.{{cite news |last1=Gerlis |first1=Melanie |date=31 March 2017 |title=Investors and luminaries |language=en-GB |newspaper=Financial Times |url=https://www.ft.com/content/2d5e0104-149f-11e7-b0c1-37e417ee6c76 |url-access=subscription |access-date=2017-03-31}} At the same time, Patrick van der Vorst bought back [https://www.valuemystuff.com/en/home ValueMyStuff] out of the insolvency.

{{reflist}}

Category:Online auction websites of the United States

Category:Companies that filed for Chapter 11 bankruptcy in 2020

Paddle8 Lalique glass expert (via Auctionata) G.G. Weiner