Private investment firm Comvest Partners acquires the financially troubled e-retailer, which filed for Chapter 11 bankruptcy protection in March.
The company will use the capital to improve its e-commerce capabilities.
Paddle8, an online art marketplace, said today it had raised $4 million in a funding round led by Founder Collective and Mousse Partners. The marketplace, which operates at Paddle8.com, will use the capital to expand its e-commerce features.
Paddle8 launched in May and says it works with more than 200 galleries, the Los Angeles County Museum of Art, art fairs and other outlets to match art sellers with collectors. Paddle8 says it has more than 2,000 “high net-worth individuals” from some 150 countries on its membership rolls.
Paddle8 plans to improve its site navigation, offer more editorial content, upgrade its point-of-sale capabilities and create mobile applications, the company says.
Founder Collective manager partner David Frankel joins the Paddle8 board.
"We are delighted to welcome these dream investors to our team,” says Paddle8 co-founder Aditya Julka. “With their immense entrepreneurial expertise and networks, Paddle8 has a great deal to gain as we evolve our business to focus more on the tools offered to galleries and luxury experience provided to collectors."