1. What are the goals of Artfonds 21 AG?
Artfonds 21 AG has the goal to build up a collection and make profits in the trade of modern artworks. We acquire works from young artists whose artworks we expect to be subject to a considerable increase in value in the future. We support the artists by facilitating the placement of their works in galleries, other collections and museums. When a considerable increase in value has been reached we will sell a part of the acquired pieces of art. An increase in the value of the company can also be reached when the market value of the acquired pieces of art increases. We are therefore not necessarily dependent on the sale of the pieces of art.
2. Can the artists also participate in the economic success of the company?
The artists can participate in two ways in the economic success of Artfonds 21 AG. They can contribute their pieces of art as contribution and kind against shares into Artfonds 21 AG. This requires that the pieces of art have reached a certain secured market value. Furthermore, the artists can also become a partner of Artfonds 21 Künstler GbR. In order to become a partner of Artfonds 21 Künstler GbR the the artists whose works we want to acquire grants a discount to Artfonds 21 AG. With this discount he or she becomes a partner of Artfonds 21 Künstler GbR. The Artfonds 21 Künstler GbR will conclude a profit transfer agreement with Artfonds 21 AG according to which 10 % of the annual profits of Artfonds 21 AG shall be transferred to Artfonds 21 Künstler GbR.
3. How is it decided whose artworks are acquired?
On our team we have several experts in the modern art scene. The final decision of who is selected to be a part of the portfolio and which works we shall acquire is one of the tasks of Rik Reinking, who is a member of the managing board. Rik Rinking is a young, successful art collector who has proven in the past to have a good intuition as to future developments of the art market. He also has an excellent network in the art scene.
4. How can one expect to achieve an increase in value in the art acquired?
We will actively support the artists, whose works we have acquired by facilitating the placement of their works in galleries, other collections and museums. Furthermore, we will also work with the acquired pieces of art and shall make them available for museums and gallery owners for other exhibitions. The company shall regularly publish its portfolio and thereby intends to increase the publicity of the artists and the acquired pieces of art.
5. The increase in value of piece of art requires a very long term perspective.
....How has this aspect been incorporated into the business model?
Artfonds 21 AG has low running costs in order to save liquidity. The fixed remuneration of the management team is very low and largely success orientated (participation in the profits in case of a sale, stock options in a total amount of 10 % of the share capital). Furthermore, the discounts granted by artists who want to become a partner of Artfonds 21 Künstler GbR also save liquidity of the company as well as the possibility to contribute pieces of art as a contribution in kind into the company. In order to generate liquidity to cover the running costs of the company we also intend to lease pieces of art to our shareholders.
6. When and how is it decided to sell a certain piece of art?
There will be no fixed minimum increase in value which shall determine a forced sale. Instead, we will weigh the increase of value against the prospective future increases of value in each case and decide upon a sale on a case by case basis. The decision when and under which conditions is primarily a part of the tasks of Rik Reinking.
7. Why and when do you want to list the shares of Artfonds 21 AG?
The listing of the shares of Artfonds 21 AG serves several purposes. By way of a public listing we want to generate additional financial means to acquire more artworks. The share price, as an index of market perspective, will indicate to what extent we have been able to achieve an increase in value. Furthermore, the public listing will allow investors to liquidate their investment in part or in whole. We have no strict time plan for a public listing. This will depend on the ability to raise financial means by way of private placements, the investor interest in our business model and in modern art, and the general capital market situation.