Total amount raised
$110 Million
Latest funding date
10/1/2021
Location
Masterworks has successfully raised funds through a Series A round, with notable investors including Tru Arrow Partners, Galaxy Interactive, and Left Lane Capital. The platform offers art investment products to the retail investing public.
Keep reading to explore the intricacies of Masterworks' fundraising journey and the investors backing this innovative platform.
What Is Masterworks?
Masterworks is a platform that offers art investment products to the retail investing public. The company is based in New York, New York, and operates within the art, financial services, and trading platform industries.
Founded with the aim of democratizing art investment, Masterworks has grown to employ between 101-250 people. The platform has successfully raised funds through a Series A round and has acquired another company named Arthena.
How Much Funding Has Masterworks Raised?
- Series A
- Amount Raised: USD 110,000,000
- Date: October 2021
- Lead Investors: Left Lane Capital
- Valuation at Round: Over $1 billion
- Motivation Behind the Round: To accelerate growth into various distribution channels, including financial advisors, wirehouses, and institutions. The funding will also help Masterworks build out its platform to provide outperforming and non-correlated art investment products to all types of investors.
Total Amount Raised: USD 110,000,000. Current Valuation: Over $1 billion.
Key Investors
- Left Lane Capital
- Details: Left Lane Capital is a venture capital firm based in New York City. They focus on high-growth consumer internet and technology companies.
- Investment Focus Areas: Consumer internet, technology, high-growth companies.
- Notable Investments: Not publicly disclosed.
- Galaxy Interactive
- Details: Galaxy Interactive is a division of Galaxy Digital, co-founded by Sam Englebardt. They specialize in interactive content, social platforms, and technology.
- Investment Focus Areas: Interactive content, social platforms, technology.
- Notable Investments: Not publicly disclosed.
- Tru Arrow Partners
- Details: Tru Arrow Partners is a venture capital firm co-founded by Glenn Fuhrman. They invest in innovative and high-growth companies.
- Investment Focus Areas: Technology, innovation-driven companies.
- Notable Investments: Not publicly disclosed.
What's Next for Masterworks?
Masterworks is poised to capitalize on the vast opportunities within the art market, aiming to securitize high-value artworks by renowned artists like Picasso and Banksy. With plans to purchase nearly $400 million worth of art this year and targeting closer to $1 billion in 2022, the platform is set to become a significant player in the high-end art market.
Future fundraising opportunities are promising, with the potential for additional Series funding rounds to support their ambitious growth plans. The company also leverages the Reg A+ securities exemption, allowing for increased funding caps and broader investor participation. This financial strategy positions Masterworks to continually expand its portfolio and investor base.
However, challenges such as competition from other art investment platforms and navigating regulatory complexities could pose hurdles. Ensuring the scalability and security of their online platform will be crucial as they grow. Despite these challenges, Masterworks' strategic partnerships and innovative approach to art investment suggest a bright future ahead.
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