Our in-depth review compiles crucial details to help you assess whether Timeless Investments is legit, ensuring you make informed investment decisions.
What is Timeless Investments and how does it work?
Timeless offers an approach to investing in exclusive collectibles by making it accessible to a broader audience through fractional ownership.
Here's a breakdown of how it operates:
- Identification and Acquisition of Assets: Timeless leverages data-driven methodologies and taps into an expert network to discover unique collectibles with a high potential for value appreciation. These items undergo a rigorous authentication and verification process before acquisition, ensuring that only assets with genuine potential are selected for investment.
- Asset Management: After the purchase, Timeless assumes responsibility for the storage, insurance, and maintenance of the collectibles. They employ decentralized storage solutions to enhance the security and maintenance of these assets, ensuring they remain in pristine condition over time.
- Investment Process: Timeless makes these carefully selected and managed collectibles available to investors through its app. The assets are tokenized, meaning they are divided into shares, allowing investors to buy fractions starting.
- Trading: Investors are not locked into their investment for the entire holding period, which averages between 2 to 8 years, depending on the asset class. They have the flexibility to sell their fractions to other investors through the Timeless platform or purchase additional shares, facilitating a dynamic trading environment.
- Sale and Distribution: Timeless actively monitors the market and the value development of its assets to determine the optimal time for resale, aiming to maximize returns for its investors. When a suitable sale offer is received, Timeless seeks approval from the fraction holders. If the majority agrees, the sale proceeds, and investors are compensated according to their shareholdings.
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How risky is Timeless Investments?
4/5
— High RiskInvesting with Timeless, like any investment platform, carries certain risks that potential investors should carefully consider:
- Market Risk. The value of collectibles can be highly volatile and unpredictable. Factors such as changes in consumer preferences, economic conditions, and market trends can significantly impact the appreciation potential of the assets offered on Timeless. There's no guarantee that a collectible will increase in value over time.
- Liquidity Risk. Despite the platform's efforts to enhance liquidity through fractional ownership and a trading platform, investors may face challenges when trying to sell their shares. The ability to sell depends on the demand from other users on the platform, which can fluctuate. In periods of low demand, investors might find it difficult to liquidate their positions without incurring losses.
- Regulatory Risk. Changes in laws and regulations affecting the buying, selling, and ownership of collectibles can impact the platform's operation and the assets' value. Additionally, the exclusion of US citizens due to SEC restrictions and FACTA implications highlights the potential for regulatory constraints to influence who can invest and under what conditions.
- Asset-Specific Risks. Each collectible comes with its own set of risks, including authenticity, condition, and provenance issues. While Timeless takes steps to authenticate and verify the assets, unforeseen complications related to the collectibles themselves could affect their value.
- Platform Risk. As with any digital platform, there are risks related to data security, privacy, and operational stability. Any breaches or technical failures could undermine investor confidence and affect the platform's functionality.
Investors should conduct thorough research and consider their risk tolerance before investing in collectibles through Timeless. It's important to note that while the platform offers a novel way to invest in exclusive assets, it does not eliminate the inherent risks associated with such investments.
How liquid is Timeless Investments?
2/5
— Moderate LiquidityWhile collectibles are traditionally considered illiquid due to their nature and the specialized markets they operate in, Timeless enhances liquidity through fractional ownership and a trading platform.
Investors can buy fractions of a collectible for as little as 50€, making it easier to enter and exit investments compared to purchasing whole assets. During the holding period, typically ranging from 2 to 8 years depending on the asset class, investors have the opportunity to sell their fractions to other investors on the Timeless platform. This feature introduces a level of liquidity not commonly found in the collectibles market, as investors are not bound to wait until the collective decision to sell the asset is made.
However, it's important to note that the liquidity is somewhat dependent on the demand within the Timeless platform itself. The ability to sell fractions quickly will vary based on the interest from other investors in acquiring shares of specific collectibles. Additionally, the final liquidity event occurs when a collectible is sold after the holding period, with the approval of the majority of fraction holders, at which point investors receive their share of the proceeds based on their ownership stake.
How volatile is Timeless Investments?
3/5
— Moderate VolatilityThe assets available for investment on Timeless, being exclusive collectibles, inherently exhibit a degree of volatility that potential investors should be aware of.
This volatility stems from several key factors:
- Market Demand Fluctuations. The value of collectibles is largely influenced by market demand, which can be unpredictable and subject to rapid changes based on trends, collector interest, and economic conditions. As such, the prices of these assets can fluctuate significantly over short periods.
- Rarity and Exclusivity. Many collectibles derive their value from their rarity and unique characteristics. While this can lead to high appreciation, it also means that their market is more niche, which can result in more pronounced price swings compared to more conventional investments.
- Condition and Authenticity Concerns. The condition and authenticity of a collectible directly impact its value. Any changes in the perceived condition or questions about authenticity can cause sudden shifts in its market value.
- Economic and Cultural Trends. Collectibles are also subject to broader economic and cultural trends that can affect their popularity and, consequently, their value. For example, shifts in cultural interests or economic downturns can reduce demand and value.
While Timeless aims to select and manage collectibles with high potential for value appreciation, the unique nature of these assets means that their values can be highly volatile. Investors should consider this volatility and its implications for their investment strategy and risk tolerance.
What is the average rate of return for Timeless Investments?
40 %
— High ReturnTimeless, like any investment platform, emphasizes that returns cannot be guaranteed, and past performance is not a reliable indicator of future results.
However, historical data from Timeless shows a range of returns from their past exits, with an average annual return of 40%. The minimum annual return noted is 9.1%, and the maximum reaches up to 93.1%.
While these figures indicate the potential for significant returns, investors should approach with caution, understanding that the collectibles market's inherent unpredictability and complexity mean that returns can vary widely and are influenced by external factors beyond the control of any single entity.
What is the minimum investment amount for Timeless Investments?
€50
The minimum investment required to participate in the collectible opportunities offered by Timeless is set at €50 per share.
What is the investment time horizon for Timeless Investments?
2-8 years
The investment time horizon on Timeless typically ranges between 2 to 8 years, depending on the specific asset class. This period allows for the collectibles to potentially appreciate in value.
However, within this timeframe, investors have the flexibility to trade their shares with other investors through the Timeless platform, offering some liquidity before the collective decision to sell the asset is made.
The ultimate sale of the collectible, aiming to realize its appreciated value, is subject to approval by the majority of fraction holders. Investors should consider this time horizon in light of their own investment goals and timelines.
Who can invest in Timeless Investments?
European Union
To invest with Timeless, individuals must meet certain criteria to ensure compliance with regulatory requirements and the platform's operational policies.
The eligibility criteria for prospective investors include:
- Being at least 18 years old.
- Possession of a valid identity card or passport for identity verification purposes.
- Ownership of a SEPA (Single Euro Payments Area) bank account, facilitating transactions within the EU.
- Not being subject to taxation outside the European Union, ensuring compliance with EU financial regulations.
- Having a permanent residence, indicating stability and reliability for financial transactions.
Importantly, Timeless explicitly excludes US citizens and US taxpayers from its service. This exclusion is due to specific regulations set forth by the US Securities and Exchange Commission (SEC) and the implications of the Fair and Accurate Credit Transactions Act (FACTA), enacted in 2010 to combat tax evasion by US citizens living abroad. These legal and regulatory constraints necessitate the exclusion of US citizens and taxpayers from participating in Timeless's investment opportunities.
Is Timeless Investments regulated or audited?
BaFin Regulated
Timeless operates within the regulatory framework of the German financial market and maintains transparency and compliance through its association with the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin).
As a testament to its adherence to regulatory standards, Timeless is registered as a contractually bound intermediary of CONCEDUS GmbH and is listed in the BaFin register of contractually bound intermediaries under the register number 80174023.
This registration indicates that Timeless has fulfilled the necessary criteria and obligations to operate under the supervision of BaFin, ensuring a level of regulatory compliance and oversight in its operations.
However, the specific details regarding audits and additional regulatory measures beyond this registration were not provided, so investors should consider this aspect when evaluating the platform's regulatory standing.
Is Timeless Investments insured?
Yes
Timeless takes measures to ensure the safety and security of the collectibles by storing them in a German storage facility, accompanied by an insurance policy tailored to provide coverage for the collectibles stored within the specified conditions of the policy. This insurance aims to mitigate risks such as theft, damage, or destruction caused by unforeseen circumstances, including force majeure events.
However, it's important for potential investors to understand that despite these precautions, there are scenarios where the insurance coverage may not fully protect against losses. Cases such as burglaries leading to theft, damage due to force majeure, or other scenarios where the collectibles become inaccessible, destroyed, or damaged might not be fully covered by the insurance policy. Additionally, there could be challenges in enforcing claims against the insurance, or situations where the insurance company fails to fulfill its obligations, leading to partial or complete loss of value of the collectibles.
Furthermore, Timeless explicitly notes that there are neither guarantee funds nor compensation schemes available, including no deposit insurance for consumers' claims. This means that in the event of a loss not covered by the insurance, investors would not have access to additional financial protection mechanisms.
Does Timeless Investments distribute payouts?
No Recurring Payouts
Timeless does not offer traditional dividends in the way stocks might, as the platform's investment model is based on the appreciation of exclusive collectibles rather than generating periodic income.
Instead of receiving regular dividend payments, investors potentially benefit from the increase in value of the collectibles they have invested in. The return on investment primarily comes from selling the collectible at a higher price than its purchase value, which is realized when Timeless sells the collectible after the holding period, with the decision to sell based on majority approval from the fraction holders.
The profit from the sale is then distributed to investors proportionally to their shareholdings. Therefore, the "dividend" in this context is the capital gain realized upon the successful exit of an investment, rather than periodic income distributions.
How do I get my money back from Timeless Investments?
An investor can get their money back from Timeless primarily through the sale of the collectible in which they have invested. Once the collectible is sold, after obtaining majority approval from the fraction holders, the profits are distributed among the investors according to their shareholdings.
To receive these funds, investors need to have their SEPA bank account details entered on the Timeless platform. Following the sale and the allocation of profits, the withdrawal amounts are automatically transferred to the investor's designated SEPA bank account within 10 banking days.
This process enables a straightforward mechanism for investors to receive their returns directly in their bank account after the successful exit of an investment.
What are the annual fees for Timeless Investments?
At different stages of the investment process on Timeless, investors encounter various fees, primarily aimed at covering the costs associated with managing and maintaining the collectibles. Here's a breakdown of these fees.
Initial Purchase:
- Service Fee: A one-time 2% service fee is charged when purchasing fractions. This fee covers the costs related to dividing the collectible into fractions, along with documentation and storage of all contractual details.
- Management Fee: Also charged at the time of purchase, the management fee includes expenses for transport, storage and retrieval, maintenance, insurance, and recurring valuation of the collectible. The rate varies depending on the asset category, ranging from 1% to 6%. All costs are disclosed in detail before the purchase.
Trading:
- Buying Shares: When buying shares through trading, investors are charged a 2% service fee. There is no management fee for trading.
- Selling Shares: Sellers do not incur any fees when trading shares on the platform.
There are no ongoing fees for the storage or custody of the shares or for the operation of the platform after the initial service and management fees have been paid. Additionally, there are no fees charged to investors when a collectible is sold.
How do I handle my investments in Timeless Investments?
On Timeless, asset management from an investor's perspective primarily involves the ability to trade shares of their invested collectibles. After purchasing fractions of a collectible, investors have the opportunity to sell these shares to other investors on the platform or to buy additional fractions from others. This trading capability allows investors to adjust their investment portfolios based on their changing preferences, market conditions, or investment strategies over the holding period, which typically ranges from 2 to 8 years depending on the asset class.
However, the direct physical management of the collectibles, including storage, insurance, and maintenance, is handled by Timeless. This setup frees investors from the complexities of managing high-value collectibles while still allowing them to participate in the potential value appreciation of these assets through fractional ownership.
Investors, therefore, can manage their investment by deciding when to buy or sell shares, but the operational aspects of asset management, such as ensuring the collectibles' safety and condition, remain the responsibility of Timeless.
How does Timeless Investments get taxed?
Timeless offers tax reporting support to its investors by allowing them to download an Excel spreadsheet that details their purchases and sales on the platform.
This feature enables investors to easily track their transactions, facilitating the preparation of tax reports and the calculation of potential tax liabilities associated with their investments.
How many investors are on Timeless Investments?
The website received an average of 32,000 visits in the last 3 months.
As of the latest data available, Timeless boasts a community of 411,000 users who have chosen to explore investment opportunities that the platform offers.
These users have collectively financed a total of 551 assets.
In terms of financial volume, Timeless has tokenized assets amounting to a total of 23.6 million euros. This figure represents the overall value of collectibles that have been made available for fractional ownership and trading on the Timeless platform.
Who is the CEO of Timeless Investments?
Timeless Investments is spearheaded by a trio of co-founders with extensive experience in technology, finance, and entrepreneurship.
Malte Häusler - Co-Founder & CEO. Malte serves as the CEO of Timeless Investments, bringing more than 15 years of experience, including five years in C-level positions, to the table. With a strong foundation in Controlling & Finance, Malte's career includes notable achievements such as founding and scaling a FinTech company from the ground up. Before stepping into entrepreneurship, Malte was a management consultant for a decade, involved in various industries and adept at executing fundraising efforts. He has also managed teams exceeding 50 full-time employees, showcasing his leadership capabilities.
Andreas Joebges - Co-Founder & CTPO. Andreas brings over two decades of experience in the tech industry to Timeless Investments, where he serves as the Chief Technology and Product Officer (CTPO). His background is rich with roles such as CTO, Enterprise Architect, and Lead Developer, focusing on growing online and mobile businesses at scale, particularly within e-commerce and media.
Jan Karnath - Co-Founder & Board Member. As a board member, he likely plays a significant role in the strategic direction and governance of Timeless Investments.
