When many of us think about art, we're reminded of our younger years of finger painting, water colors, and watching Bob Ross create happy little trees. The fine art in museums and galleries was always out of reach; meant for a different class of people living vastly different lives.
But fast forward a few decades and technology has matured, laws have changed, and there are now new ways to invest in this asset class that was historically reserved for the ultra rich. Our relationship with art has evolved from something we stuck on the fridge with a magnet to a viable, exciting, and no longer out-of-reach investment.
Indeed, you don't need to be a Rockefeller to join this party.
We're now living in the future where incredibly rare fine art, technology, and your investment portfolio can collide to create a new experience of ownership. This is about democratizing access to the high-flying world of fine art. This is about forging a new path to unearthing previously exclusive assets, while also bringing the joy of the collecting experience to life for normal people.
How, exactly? Fractionalization. That's right, friends - divide and conquer.
The Power of Fractional Ownership
So, you're probably asking, "What in the world is fractional ownership?" Picture the Mona Lisa, or Starry Night, or anything at all by Rembrandt. You can't afford the whole thing, right? But what if you could get a group of people together - legally, in a trusted way - to make the purchase? That's the gist of it. Now we can break down the barriers thrown up by the highbrow art world and make these pieces accessible to anyone with a few hundred bucks to invest. The beauty of it is you can now benefit from the appreciation of the art, just like the big-shot collectors of yore.
Make it easy
Owning high value physical assets can be a chore. If you can even afford to purchase a $500,000 Warhol, you have to not only keep it safe - climate and temperature controlled, out of sunlight, away from children and pets - but also insured. You'll have to transport it between locations from time to time, adding to the risk of damage. You have to worry about theft. It can be exhausting.
Allowing a third party to manage all of this takes the psychological stress (along with the associated costs) out of your hands. Less to worry means more time to enjoy the rest of your life, while still maintaining exposure to an incredibly unique asset class.
Show Me the Money
So how does one make money? Well, imagine you bought a fraction of a Banksy piece. His artwork has a tendency to appreciate over time. If the value of the piece goes up, the value of your fraction goes up too. You can then sell your fraction for more than you paid for it (so long as the platform has an active secondary market). Voila, profit! Alternatively, you can wait for the piece to be resold in full and then get paid out proportional to your ownership share.
Now to be clear, like any investment it also comes with risks. The value of the artwork might go down, or it might not sell at all. As with any investment, you shouldn't put all your eggs in one basket. And that's because...
Diversification is key
Fractionalized ownership makes it easy to diversify your investments - not just between asset classes, but also between individual assets within one class. Instead of going all in on a single artwork (and crossing your fingers), you can spread your funds across many. This is an efficient way for you to broaden your collection while mitigating risk through exposure to multiple works, genres and artists, ensuring that all of your eggs don't sit in one basket.
Let's do this
Remember, the fine art market has historically been a playground for the rich. It's time to change all that. We're bringing fine art to those who've never has access before, so that everyone gets a chance to participate in this new paradigm of investing.