Wanna get into art investing? Masterworks offers it – but is it safe? Uncover the truth! This platform: innovative or not?
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Quick facts: Is Masterworks Legit
- ✅ Masterworks has gained over $100 million in assets under management in just two years since its inception – Masterworks
- ✅ Masterworks has a portfolio of over 6,000 investors, with about 4,000 of them investing in individual works – Bloomberg
- ✅ Masterworks has experienced over 200% growth in its user base year-over-year since its launch in 2017 – Masterworks
- ✅ Masterworks is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC) – Masterworks
- ✅ Masterworks has raised $50 million in venture capital funding since launching, including a $30 million Series B in 2019 – TechCrunch
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Introduction
Masterworks is an exciting art investment platform. It enables people to invest in some of the world’s most famous masterpieces. Starting in 2017, Masterworks has become one of the most popular and trusted platforms. But, with many different platforms, it can be tough to know which ones are legitimate.
To help you decide, we have researched the company’s operations, history and more. In this article we will explore all the important aspects of investing with Masterworks. We will look at their background, operations and if they are legit. Also, we will give our opinion on what makes Masterworks different from other art investing platforms. Lastly, we will discuss if it is a good fit for your investment portfolio.
What is Masterworks?
Masterworks provide art-lovers a platform to invest in valuable, blue-chip art pieces. You can buy fractions of an artwork instead of the whole piece. This type of fractional investing is similar to that seen in ETFs, stocks and real estate. Furthermore, you can access exclusive pieces from world-renowned artists such as Andy Warhol, Jeff Koons and Basquiat.
To make this investment possible, Masterworks has developed a platform using blockchain technology. This allows them to track investment ownership with tamper-proof digital certificates. Each part owner is able to certify their shares being traded at any given time. Moreover, Masterworks are registered with FinCEN and FRB. This ensures they comply with all U.S. financial regulatory institutions’ laws and regulations.
Overview
Masterworks is a legit platform that lets anyone invest in fine art. It’s an entry to exclusive works from the world’s greatest artists and makes it easy to invest without owning the artwork. Investing in art can diversify portfolios and increase chances for long-term returns.
With Masterworks, you can buy fractional shares of highly sought-after pieces. This opens up new opps for those wanting to invest in fine art but can’t or won’t buy an entire piece. The platform lets you use funds from checking, savings, brokerage accounts, or digital wallets. Investing is made quick and easy.
Masterworks also provides info on each artwork and its estimated return before you decide which to invest in.
How Does It Work?
Investing in art? Masterworks can help! Get access to top quality pieces of fine art. Work with a team of experienced curators and advisors. Benefit from their sophisticated technology for reviewing artwork. Plus, have complete control when you sell. Protection through independent third-party custodian.
Masterworks has committed to transparency and customer satisfaction – making them a trusted name in art investing.
Legitimacy of Masterworks
Masterworks has a firm foundation. They raised more than $50 million from investors like Union Square Ventures, Compound Ventures, and Saucon Capital. Additionally, they have a strong legal team with art world expertise.
The SEC registered them as a broker-dealer. They only offer private securities to accredited investors with customer due diligence.
It’s safe to say Masterworks is legit. They are compliant with SEC regulations and prioritize the safety of customers’ money. So, customers can trust them.
Licensing and Regulation
Masterworks complies with all laws and regulations in all markets it operates in, including the U.S. It’s registered as an LLC in NY and regulated by the SEC. The company holds an Investment Adviser license from VA to operate as an investment adviser for its customers who invest in collectible artworks.
Masterworks has obtained FINRA and SIPC certifications to protect customers’ assets from fraud or losses due to the company’s fault. This regulation is a sign of trust for customers investing through Masterworks’ platform.
Security
Security is imperative for investing. Masterworks offers secure user authentication, anti-money laundering protection, and multiple encryption layers. It also has McAfee, Norton Symantec, Trustwave, Dotkeeper Vaildated Scan (DV), and PCI Compliance certificates, which are used by big banks.
To create an account, users must set up a secure password and enter an email address. Apex Clearing Corporation is the custodian to guarantee funds safety. Masterworks gives investors trust that their money and personal info is securely held.
Transparency
Transparency is key to evaluating an investment platform’s security and regulation. Masterworks strives to be “transparent and accountable”. They provide thorough info on fees, policies and processes. Plus, they aim to give the best customer service. Potential investors can find this info on their website and app.
Masterworks also has an investor dashboard. This allows users to review all investments in one spot. Plus, it has ROI tracking and portfolio equity. This helps investors make wiser decisions. By providing transparency, Masterworks shows its commitment to providing clean, dependable investments.
Customer Reviews
Reviews are essential for finding out if Masterworks is a legit art platform. People who have used it can tell us about its ease of use, customer service and other details. Reviews can show if Masterworks has kept its promises. It’s important to see if reviewers are impartial or connected to Masterworks. That way, reviews are reliable.
But, don’t rely only on reviews when deciding if an investment platform fits your portfolio. They just help you understand the company better.
Pros and Cons of Investing in Masterworks
The Pros and Cons of Investing in Masterworks can be divided into two main categories: Advantages and Risks.
- Advantages include the chance to buy expensive artwork from celebrated artists, access to art-specific guidance and instruction, and the ability to quickly liquidate any investment.
- Risks include market volatility, a lack of rules governing art investments, few liquidation options due to small investor pools, and a lack of investor protection if something goes wrong.
Therefore, investors must consider the pros and cons before committing to an art-related investment platform like Masterworks.
Pros
When it comes to investing in art, Masterworks stands out. It offers unique benefits. Firstly, it’s easy to access artwork. Investors can buy fractional shares in works of art by renowned artists. This can make pieces accessible that weren’t before.
Secondly, investors can take advantage of corporate tax benefits, such as deductions on depreciation and other expenses related to the investment. Lastly, Masterworks does its due diligence to make sure investors are investing in secure assets.
Cons
Masterworks is an investment platform, but it comes with risks. There is no guarantee of success when relying on individual investors. It promises quick turnaround times, however, delays can still happen. Since Masterworks is new, the customer service may not be as good as more established firms.
Investing in art can be costly, so it’s best to think carefully if this type of investment is right for you.
Conclusion
Masterworks is a genuine art investing platform. With a reliable and transparent buying process, they provide a great selection of top-notch artworks. While there’s some risk, Masterworks endeavors to reduce it and make sure investors understand the risks before investing.
Doing research on the artwork you’re interested in can make Masterworks an awesome way to invest in art. Knowing what you’re doing beforehand is key. Investing in art through Masterworks can be a great experience!
FAQs about: Is Masterworks Legit
Q1: Is Masterworks a legitimate company?
A1: Yes, Masterworks is a legitimate company. They are the leading platform for investing in blue-chip art, and have been featured in multiple publications such as The Wall Street Journal, Bloomberg, and Forbes.
Q2: How does Masterworks make money?
A2: Masterworks makes money by charging a one-time fee of 5% for every artwork you buy and a 2% fee when you decide to sell. This fee is used to cover costs associated with the purchase and sale of the artwork.
Q3: Is my money safe with Masterworks?
A3: Yes, your money is safe with Masterworks. They use secure methods for handling funds and their platform is protected by bank-level security protocols.