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Founded Year

2011

Stage

Loan | Alive

Total Raised

$18M

Last Raised

$1.5M | 4 yrs ago

About Worthy

Worthy offers an online and secure marketplace for pre-owned luxury goods. It helps private sellers to auction high-value items including diamonds, brand-named watches, jewelry, gemstones, and precious metals to a market of committed buyers. The company was founded in 2011 and is based in New York, New York.

Headquarters Location

New York, New York, 10036,

United States

888-222-0208

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Expert Collections containing Worthy

Expert Collections are analyst-curated lists that highlight the companies you need to know in the most important technology spaces.

Worthy is included in 2 Expert Collections, including E-Commerce.

E

E-Commerce

10,549 items

Companies that sell goods online (B2C), or enable the selling of goods online via tech solutions (B2B).

L

Luxury Tech

419 items

Tech-enabled companies launching new luxury brands, as well as startups providing tech solutions to the luxury industry, including e-commerce tools, marketing, and more. While these companies may not exclusively target luxury companies, they have notable luxury partners.

Worthy Patents

Worthy has filed 2 patents.

The 3 most popular patent topics include:

  • data management
  • database management systems
  • databases
patents chart

Application Date

Grant Date

Title

Related Topics

Status

5/4/2021

2/21/2023

Data management, Database management systems, Databases, Remote desktop, Systems engineering

Grant

Application Date

5/4/2021

Grant Date

2/21/2023

Title

Related Topics

Data management, Database management systems, Databases, Remote desktop, Systems engineering

Status

Grant

Latest Worthy News

Warning: Don’t Ignore Your Customers’ Secured Lenders, You Could be Required to Pay Twice!

Mar 29, 2023

To embed, copy and paste the code into your website or blog: <iframe frameborder="1" height="620" scrolling="auto" src="//www.jdsupra.com/post/contentViewerEmbed.aspx?fid=cd39f47f-f864-4c31-8718-447de3570550" style="border: 2px solid #ccc; overflow-x:hidden !important; overflow:hidden;" width="100%"></iframe> New York State’s highest court recently dealt a big win for secured lenders holding accounts receivable as collateral. In Worthy Lending LLC v. New Style Contractors, Inc., the Court of Appeals of New York held that, pursuant to Article 9 of the Uniform Commercial Code (the “UCC”), a secured party may directly collect on the proceeds of accounts receivable owed to the borrower from third parties (so called “account debtors” in UCC parlance), even if an event of default has not occurred. In so holding, the Court concluded that Section 9-406 of the UCC (which governs the discharge of an account debtor’s liability) applies to secured lending transactions, notwithstanding the provision’s use of the term “assignment”, which the Court determined to be synonymous with a security interest. Furthermore, the Court determined that a secured lender has an independent cause of action against any account debtor that ignores such lender’s request for direct payment and any account debtor that does not follow such direction will be liable to the lender even if it has already paid its vendor (resulting in double payment). Case Background: The Court of Appeals held: “Under UCC 9-406, a security interest is an assignment and the UCC is purposefully structured to permit a debtor to grant creditors security interests in a debtor’s receivables so that the secured creditor can direct account debtors to pay it directly.” Checkmate Communications LLC and Worthy Lending LLC entered into a Note and Security Agreement whereby Checkmate could borrow up to $3 million from Worthy. As collateral for the loan, Checkmate granted Worthy a security interest in substantially all of its assets including “all right title and interest of [Checkmate] in and to its (a) accounts…”  “Accounts”, as defined under the UCC, include accounts receivable arising from invoices issued by Checkmate to its customers such as New Style Contractors, Inc. Additionally, the Note and Security Agreement provided Worthy the right to “notify and instruct account debtors” to remit payment directly to Worthy including before any event of default had occurred. Worthy perfected its security interest by filing a UCC-1 Financing Statement and subsequently notified New Style of its security interest and the collateral assignment of the accounts receivable of New Style. In its notice to New Style, Worthy instructed New Style to remit all payments to Worthy directly instead of to Checkmate. Citing Section 9-406 of the UCC, Worthy also notified New Style that payments made to any party other than Worthy would not discharge New Style’s obligations and liabilities with respect to its accounts receivable. Following Checkmate’s default on the loan, Worthy accelerated the debt under the Note and demanded repayment. Checkmate filed for bankruptcy protection and Worthy commenced a lawsuit against New Style to collect the receivables owed it to Checkmate. New Style sought to defend the claim by asserting that Section 9-607 of the UCC applies only to assignments of accounts and not to security interests in accounts. The Court rejected this argument based on a plain reading of the statute and commentary thereto, and found that Section 9-607(a)(3) expressly states that a secured party may obtain collateral directly from an account debtor and the parties may contractually agree that the secured party may do so without regard to an event of default. The Court further rejected New Style’s attempt to distinguish a “security interest” from an “assignment” under the UCC citing the definition of security interest in Section 1-201(b)(35) and noting that the definition does not distinguish between the two terms. Addressing New Style’s concern about potential double payment, the Court indicated that is the consequence imposed by the UCC for failure to heed the notice and request for payment provided by a secured party. Lessons for Account Debtors: The ruling in Worthy Lending creates a conundrum for account debtors. If the account debtor ignores a notice from the secured lender and pays its vendor/the borrower instead, such account debtor may nevertheless be liable to the secured lender even if it causes them to pay double. As stated by the NY Court of Appeals—“[t]hat is the statutory consequence of failing to pay a secured party.”  However, if the account debtor obliges the secured lender, there is a strong chance that the vendor/borrower will no longer provide goods or services to such account debtor since the vendor/borrower did not directly receive payment for the goods or services it delivered. If you have received a notice from a purported secured creditor, we suggest that you contact counsel who can assist you to determine whether or not the secured creditor has a perfected lien on your vendor’s receivables and how to respond to such notice. As noted by the Court, an account debtor has certain rights under the UCC to request proof from the secured lender that it possesses a valid assignment and to withhold payment in the interim. Legal counsel can assist you to assert your rights to reduce and discharge your liabilities. Lessons for Borrowers The Court determined that Section 9-607(a)(3) of the UCC establishes the baseline rights of a secured party vis-à-vis the borrower and permits the “the secured party to enforce and collect [from an account debtor] after default or earlier if so agreed.” If you have leverage with your lender and do not want your lender to directly collect from your customers, make sure your security agreements do not give away this right unless an event of default has occurred. If you are planning to take out a loan, you should contact a legal professional to help you navigate the terms and conditions of the loan documents and help you negotiate the best terms with your lender.

Worthy Frequently Asked Questions (FAQ)

  • When was Worthy founded?

    Worthy was founded in 2011.

  • Where is Worthy's headquarters?

    Worthy's headquarters is located at New York.

  • What is Worthy's latest funding round?

    Worthy's latest funding round is Loan.

  • How much did Worthy raise?

    Worthy raised a total of $18M.

  • Who are the investors of Worthy?

    Investors of Worthy include Paycheck Protection Program, Eddy Shalev, Meir Barel, Viola Ventures and OTV.

  • Who are Worthy's competitors?

    Competitors of Worthy include Vestiaire Collective and 4 more.

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Compare Worthy to Competitors

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Rebag

Rebag operates as a fashion electronic commerce platform. It sells designer handbags, watches, jewelry, shoes, accessories, and more. It was formerly known as Rebagg. It was founded in 2014 and is based in New York, New York.

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Vestiaire Collective

Vestiaire Collective is a company focused on the fashion industry, specifically in the domain of second-hand luxury items. The company offers a platform for buying and selling pre-loved designer fashion items, including clothing, shoes, bags, accessories, and vintage pieces. It primarily serves the ecommerce industry. It was founded in 2009 and is based in Paris, France.

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LePrix

LePrix is a company that focuses on the luxury retail sector, specifically dealing with pre-owned luxury items. The company offers a wide range of products including handbags, totes, jewelry, and accessories from top brands like Louis Vuitton, Chanel, Gucci, and more. LePrix primarily serves the retail industry, providing businesses with a platform to source pre-owned luxury items. LePrix was formerly known as SnobSwap. It was founded in 2013 and is based in Arlington, Virginia.

Vinted Logo
Vinted

Vinted operates as an online international customer-to-customer marketplace for second-hand fashion. It enables its users to sell and buy second-hand clothes and lifestyle items from each other. It was founded in 2008 and is based in San Francisco, California.

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ByMov

ByMov publishes a second-hand video social network. ByMov was founded in 2019 and is based in Paris, France.

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Bib + Tuck

Bib + Tuck is a members-only online community for women to trade fashion items. The company brings together people so that each can find the "new" in another's "old".

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