09 November 2015
Art investment crowdfunding style
Significant changes in the art investment market
There is a perception that in order to be a meaningful investor in art you must be a rock star, an oligarch or some other member of the wealthy elite.
However, although a high level of personal wealth coupled with a discerning eye is an important pre-requisite for the traditional art investor, new funding models are bringing about some significant changes in the previously conservative art investment market.
This is perhaps best illustrated by Art:i:curate, a crowd-funding platform which has been developed to give new and emerging artists the opportunity to receive investment in their work. However, the good news is that as well as empowering artists, it also empowers investors; giving them the means to make relatively small-scale investments in listed works.
The minimum level of commitment starts at just 10 US dollars and with profits to be shared among artists and investors, the model offers plenty of scope for high returns – potentially.
"It's the first crowdfunding platform that lets artists raise funds for their work and share sale profits with their patrons," Irina Turcan, former investment banker and co-founder of Art:i:curate, told Bloomberg media. "We are disrupting the way the art world works by reinventing the gallery model and enabling everyone to become a patron of contemporary art."
However, as with any investment, the crowdfunding model is not without risk; if a work fails to sell then investors will, naturally, fail to realise any returns.
Experts say the model has the potential to be game-changer in terms of artist-gallery relationships. At the moment galleries typically take 50% of a work's sale value, with Art:i:curate, artists sell 40% to the crowd and receive another 30% of the final sale price; the rest of the proceeds go the crowdfunders.
Creatrust for art investment
Creatrust works with clients to understand their needs, providing advisory services to choose the right investment structure through the ones existing in Luxembourg while taking into account the legal and tax aspects of the case at hand.
Whether you are looking to make an art collection available to outside investors by making it part of an art investment securitisation vehicle or are looking to benefit in some other way from the Creatrust identity of independence, in-house expertise, innovation in technology and, importantly, trust, find out more about us by requesting a brochure today.
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