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Masterworks, a two-year-old startup, buys
artwork with profit potential then sells shares in it to its
customers using its online platform.
"Our fundamental belief is that this is a very interesting asset
class, which historically has been traded by the ultra-wealthy
for hundreds of years," said Scott Lynn, a 40-year-old founder
and chief executive of Masterworks.
"But the only way to really invest in art has been to purchase a
painting. Masterworks is the first platform that allows anyone
to really invest in these great works of art."
Customers sign up, pick a piece of art, and decide how many
shares they want to buy in it, with minimums starting at $1,000.
For instance, Monet's "Coup de Vent" painting, valued at $7
million, has a couple of thousand investors right now, according
to Lynn, who expects more interest by the time Masterwoks
decides to sell it to a collector and then shares profits with
its clients.
Masterworks, based in New York, divides the art market into two
segments, Lynn said. One, called "blue chips," includes bankable
artists like Monet, and performs with high-single-digit or
low-double-digit returns, with low risk.
Another is defined by mid-career, living artists, whose work can
yield investors a return of roughly 12% to 20% a year, with
moderate risk, Lynn said.
(Reporting by Mark Porter and Aleksandra Michalska; Editing by
Tom Brown)
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