London-based fine art investment platform, Maecenas, recently launched an equity crowdfunding campaign on Seedrs, seeking 400,000 as it prepares for expansion. The platform describes itself as a marketplace that brings together fine art collectors who are seeking to raise funds and investors looking for exposure to the art market.
“The platform allows both sides of an art deal to significantly reduce the commissions paid. In traditional transactions, these can be as high as 30% of the total value for the buyer and, reportedly, 50% of the total part for the seller. This new venture comes from a team of experts who understand the technological and legal requirements of art and finance products inside out. We have received interest from a number of strong players including a bank, insurance company, and telecommunications provider.”
Explaining how the platform works, Maecenas offered up an example:
“Chelsea Galley wants to acquire a $3 million piece to expand its Warhol collect. Instead of getting a 3 year art-secured loan at a 13.5% annual interest, it can raise finance from Maecenas investors by listing some of their artwork at a 6% one-off fee. This represents a savings of over $400,000 during the loan term.”
The Maecenas team also revealed that over the last few months they have been working on finalizing fundraising from VC firm Polytech Ventures in Switzerland. The company reported that the first £199,756.80 has been invested by Polytech Ventures and the investment will be transferred in USD and has been made on the platform using a rate of $1.25152/£.
Funds from the Seedrs campaign will be used to accelerate client acquisition and market growth. It is set to close later this spring.
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