Invest in fractionalized multimillion-dollar paintings
Invest in startups and venture funds
Investments
$15,000
The minimum investment required is $15,000, which can be used to buy one or more assets.
Investments
$10,000
The minimum investment amounts on the OurCrowd platform are as follows: $10,000 for individual company investments, $5,000 per company with a $25,000 balance transfer for a Portfolio Select Account, and $50,000 for investing in OurCrowd funds.
Moderate Risk
3/5
Investing in art through Masterworks has risks, including concentration in a single artwork, limited insurance coverage, market volatility, and uncertainty in the secondary market.
High Risk
4/5
Investing via OurCrowd carries risks, including the potential loss of capital, market fluctuations, and limited liquidity. Early-stage companies may not succeed, leading to a total or partial loss.
Moderate Liquidity
2/5
You have the option to trade shares on the platform's secondary market, but there are certain restrictions on what and how you can trade.
Minimum Liquidity
1/5
Investments on the OurCrowd platform are generally illiquid, as they involve early-stage, privately-held companies. Liquidity events, such as a sale or IPO, may take several years, and there is no guarantee or secondary market for trading these investments. Investors should be prepared for long-term commitments without immediate liquidity options.
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Not Predictable Return
N/P
Returns on investments in OurCrowd's early-stage companies and venture funds are highly variable and unpredictable. While there is potential for high returns, given the speculative nature of startup investing, there's also a significant risk of loss.
Long-term Investment
5+ years
Investments through OurCrowd typically require a long-term commitment, often spanning several years to over a decade, due to the nature of startup and venture fund investing.
Who can invest
International
Masterworks welcomes individuals, corporations, or entities from any location, including the United States.
Who can invest
International
OurCrowd investments are open to accredited investors as per local regulations, which vary by country. However, residents of Cuba, Iran, Lebanon, North Korea, Syria, and the Crimea Region of Ukraine are excluded from investing through the platform.
Moderate Volatility
3/5
Art market fluctuations can lead to rapid price increases and declines, posing risks for short-term investors who may lose a significant portion of their capital.
Moderate Volatility
3/5
Assets on OurCrowd, being early-stage and privately-held companies, are highly volatile. Their valuations can fluctuate significantly due to market dynamics, competition, and operational risks.
Regulation and audits
SEC Regulated
Masterworks provides SEC-approved offering circulars for each artwork, allowing public investment. AGD Legal reviews art investments annually.
Regulation and audits
SEC Regulated
OurCrowd complies with the regulations of each country it operates in, adhering to laws governing accredited investors and investment platforms. It is subject to regulatory oversight, ensuring transparency and investor protection. While not specified, financial audits and compliance checks are likely part of its operations to meet legal and financial standards, maintaining trust and reliability among investors.
Insurance
Yes
Artworks are insured for up to $500 million by Lloyd's of London, but coverage may not fully match the artwork's value.
Insurance
No
OurCrowd does not offer insurance for investments on its platform. Investments in startups and venture funds are inherently risky, with no insurance protection against losses.
Payouts
No Recurring Payouts
Investors on OurCrowd typically do not receive dividends from their investments in startups and venture funds, as these are growth-focused and aim for capital appreciation. Profits are usually reinvested to fuel further growth.
Withdrawals
Investors should wait for the company to sell the painting to receive their share of the proceeds, after deducting fees.
Withdrawals
Investors on OurCrowd can get their money back during a liquidity event such as an IPO, acquisition, or sale of the company.
Extra Fees
Yes
Masterworks charges a 1.5% yearly fee in equity, takes a 20% cut on art sales profits, and has a one-time sourcing fee per investment.
Extra Fees
Yes
OurCrowd's fee structure includes a 2% annual management fee for the first four years, capped to cover investment management costs. Additionally, there's a 4% upfront administration fee for direct SPV expenses, with the possibility of extra reimbursement set off from returns upon distribution. Carried interest entails a 20% fee on profits up to 5x the invested amount, escalating to 25% for proceeds exceeding 5x.
Taxes
Tax Form
US taxpayers: subject to collectible gains rate (capped at 28%), unless owning 10%+ of a single painting. Masterworks provides a free Consolidated Tax Statement. Foreign investors: no US taxes or tax withholding.
Taxes
Annual Statement
OurCrowd offers investors an annual statement, which is essential for tax reporting. This statement details the year's financial activities, aiding in accurate tax filings.