StartEngine, a top securities crowdfunding platform, has acquired Vinovest, a niche wine-and-whiskey investment platform. The terms of the deal were not immediately available.
According to a company statement, Vinovest currently is home to 200,00 registered users. Since its founding, Vinovest has secured approximately $140 million worth of wine and whiskey for its users.
Brent Akamine, co-Founder and CEO of Vinovest, said that by joining StartEngine, they can now bring their mission to more investors.
Howard Marks, StartEngine co-founder and CEO, said:
“Vinovest opens the door to a new category of alternative assets for our investors, while staying true to our mission of expanding access to private markets. What stood out to me is how similar our communities are: investors looking for uncorrelated investments for their portfolios. Pre-IPO funds and wines are uncorrelated assets.”
Vinovest is expected to continue to operate as a wholly owned subsidiary under its existing brand.
StartEngine said it anticipates growing interest from retail investors in alternative assets such as wine and whiskey. At the same time, the wine and alcohol sector is going through a period of transition as younger consumers have cut back on alcohol consumption, and the once-key China market has reversed its affinity for fine wine and other popular beverage markets like Bourbon. This decline in consumption has impacted wineries and distilleries around the world. Still, enthusiasts may find it appealing to participate in a novel, non-correlated marketplace. Vinovest reports over $27.5 million in capital returned to its investors either via completed or partial exits and sales.