This Week in Startups E1087: Democratizing art as an asset class, indicators of a rapidly appreciating piece of art & more with Masterworks CEO & Founder Scott Lynn
Jul 24, 2020
Scott Lynn, CEO and founder of Masterworks, discusses how the art market is evolving into a lucrative asset class worth $1.7 trillion. He sheds light on the democratization of art investment and the use of data in valuing art. Lynn highlights trends in art investing, especially post-COVID, and the growing interest from international markets. The conversation veers into the complexities of treating art as an asset, including risks and fees, while emphasizing the importance of education for new investors navigating this dynamic landscape.
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Art Market Performance
- The art market, valued at $1.7 trillion, has outperformed the S&P 500 for 20 years.
- This performance is coupled with relatively low volatility, especially in the blue-chip segment.
Internet's Impact on Art
- The internet digitized the art market, introducing transparency with platforms like Artnet.
- This transparency, including auction records, enabled investment perspectives by verifying prices.
Art Returns and Recency
- Returns in art tend to follow recency, with post-1970 art outperforming older pieces.
- Newer art exhibits higher volatility but offers better returns than pre-WWII art, except for Monet.