As investors seek to diversify their holdings in a very heavy traditional asset market, more technology-enabled platforms have emerged, advocating alternative investment platforms of their choice. Masterworks, a startup that sells a fragmented share of paintings and other works by renowned artists, has achieved a unicorn reputation as it seeks to hunt down the market by bringing artistic exposure to people’s portfolios. bottom.
masterpiece Today, it announced that it has raised $ 110 million in Series A funding with a valuation of over $ 1 billion. The round was led by Left Lane Capital, a New York-based venture fund, with participation from Galaxy Interactive and TruArrow Partners.
Alternative assets have become a big business in the last few years as public markets have become more active and investors are seeking greater returns in less traditional markets. Alternative asset classes are diverse, with fine arts occupying a more traditional segment of the class and more predictable upper and lower segments in the market for N64 cartridges, Pokemon cards, Air Jordan and NFT in mint conditions. Occupy.
“Art as an asset class is neither GameStop nor NFT. After all, revenue is pretty predictable,” CEO Scott Lynn told TechCrunch. “Investing in one of these paintings will never make you 10 times more money, but you probably won’t lose 90% of your money.”
That’s why Masterworks isn’t a platform to back up up-and-coming painters, but rather invests entirely in artists who have a proven market for the value of their work, Lin said. “We really believe that the only investable segment of the art market is painting. [worth] Generally speaking, it’s over a million dollars, and when I say investable, I mean something that produces predictable profits, “he tells us.
Masterworks buys and stores a large number of paintings by famous contemporary artists such as Andy Warhol, Keith Haring, Jean-Michel Basquiat and Yayoi Kusama, sells qualified publicly offered shares registered with the SEC, and investors can buy them. Allows stocks to be traded in the secondary market. When the offering is over. Shareholders will be paid when Masterworks finally sells the painting. Startups make money by selling these paintings in a profitable way, earning 20% of the profit each time the painting is sold, and the annual management cost of each artwork is 1.5%.
Startups are chasing investors who still have considerable capital to invest. Lynn states that their average investor has invested more than $ 5,000 in each painting they return and has invested about $ 30,000 throughout his life.
Masterworks raises $110M to sell fractional shares of physical art — not NFTs – TechCrunch Source link Masterworks raises $110M to sell fractional shares of physical art — not NFTs – TechCrunch
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