What is Encrypt Ventures?
Encrypt Ventures is a fine art investment platform with offices in the Netherlands. Through the platform, investors can purchase fractional shares of fine art masterpieces, leveraging the benefits of blockchain technology and cryptographic security to diversify your portfolio.
How can I start investing in fine art?
You can start investing in fine art in just a few easy steps. The process is fully digital and securely encrypted through our investment platform. You can register for free and enter your personal details such as identification, address and contact details for verification.
Afer your successful registration you will enter our investor dashboard, where you can select the amount of tokens you want to purchase. Next you will have the option to choose your preferred payment method for your transaction.
Once you complete the purchase, we will check your personal and investor data to verify the information you provided, your suitability as investor, and to ensure that all legal requirements are met.
With the successful verification of your purchase, your tokens will be credited to your digital wallet. The digital wallet was set up automatically when you registered and is accessible through our investor dashboard, where you will also find detailed reports and all legal documents concerning your investment.
How much money do I need to start investing in fine art?
You can start investing in fine art from 10.000 Euro on the Encrypt Ventures investment platform. By owning fractional shares of multi-million Euro paintings, you can benefit from the price developments in the high priced art market with smaller investments.
What are the fees for using the investment platform?
Encrypt Ventures charges an annual management fee of 1.5%. Our annual management fee covers admin and legal costs, professional art storage, insurance, research and appraisals. The fee is paid in the form of equity.
What are asset tokens?
Asset tokens are digital certificates of ownership in real assets. The bearer of the asset tokens becomes the owner of a percentage of the underlying asset, in this case fine art masterpieces. These digital certificates are issued on the ERC20 standard on the Ethereum network. Each artwork that we offer is represented by a different asset token and has a unique code. For example, our first Token Offering is represented by the code EVTA1, standing for Encrypt Ventures Token Art 1.
How can I check my token holdings?
You can always check your token holdings by simply logging into the investment platform.
Can I trade my token holdings on the investment platform?
Shareholders on the Encrypt Ventures platform can trade their tokens with other shareholders. On the dashboard you can create an offer to sell tokens and see offers made by other shareholders.
What type of art will be listed on the investment platform?
Encrypt Ventures focuses exclusively on the top 500 market of artists as evaluated by artprice.com. Our recent acquisitions have all been artworks from the Old Masters segment (Europes most recognized artists working between the Renaissance and 1800), such as Francisco de Goya and Petrus Paulus Rubens. This segment is not only attractive for museums, collectors and enthusiasts. The demand for the Old Masters is continuously growing, while there is a relative scarcity of artworks available on the market. Some paintings in this segment have seen the highest short term capital gains in the art market, with price increases of over 200% in one year for selected artworks.
How do you ensure that the artworks are authentic?
As part of our due diligence process, we arrange for provenance checks to be conducted by reputable and trusted institutes and experts. This includes not only physical inspections by art institutes, but also validating certificates of authenticity, insurance policies and background checks on the previous owners. The entire due diligance documentation is stored securely and protected.
How is the artwork valued?
For the valuation of artworks we work similarly to auction houses and galleries. We gather third-party valuations from experts for the particular artwork and artist (taking into account the artist, their period, medium, and other factors). This valuation is then cross-checked with our internal valuation estimates.
How is the price of the token calculated?
The price of one token/share is calculated by dividing the artworks valuation with the total amount of tokens issued. For our token offerings we generate a total amount of 100.000.000 tokens per artwork. For example, an artwork that is worth 5 Million Euro would result in a token price of 0,05 Euro per token.
Where is the art stored?
The artworks offered on the Encrypt Ventures platform are stored in dedicated fine art storage facilities in Zurich, Switzerland, built to the highest industry standards and secured by state of the art security systems to ensure the correct storage.
What happens if a piece of art is damaged, lost or stolen?
This case is extremely unlikely. However, if it were to happen, the insurance policy payment would be initiated and all investors would receive a pro-rata payout.
Can I see the artworks personally?
Upon request, exclusive inspection and curation facilities are available to discretely and safely view and inspect the artworks within the safe environment of the partnering fine art storage facilities. Such visits are only made by appointment for existing investors with holdings of more than 500.000 Euro. Encrypt Ventures does not cover the costs for travel to and from the storage facilities.
