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CONSUMER TECHNOLOGY TRENDS 2020
Image: William Iven
Finance and insurance Broadening access
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any attractive asset classes are available only to wealthy individuals or institutional investors because they are nontradable, have high minimum investment requirements and high fees or are prone to information asymmetry. In a low interest rate environment, investors seek alternative asset classes such as real estate, private equity and venture capital, commodities, forestry, hedge funds and various exclusive assets, ranging from vintage cars and watches to coins and fine art. But retail investors are excluded from almost all of them, leaving them to suffer lower returns and higher portfolio risk. This is beginning to change. The
emergence of crypto-currency technology, regulatory willingness to test new models and the internet’s ability to reduce information asymmetry means that most asset classes can become accessible to retail investors. If you believe in the proliferation of electric vehicles you can invest directly in cobalt, a commodity used in batteries. If you rent, but have some savings, you can still invest in property. Exporo, a Heartcore portfolio company based in Germany, allows you to build a real estate portfolio with as little as ₏500. We have our eye out for retail investor platforms in large asset classes from forestry and commodities to private equity, as well as niche luxury asset classes
such as rare gems, vintage cars and fine wine. Early investment activity in this category picked up in 2019, with Otis Wealth, a marketplace for investment in exclusive alternative assets such as art, sneakers, music albums and collectibles, picking up a $3m seed round and shortly after a $11m Series A with Maveron. The model works as follows: Otis purchases high-quality assets and then issues shares through an SEC-approved offering. Through weekly drops, it offers fractional ownership starting at $25 per share to its users,
Most asset classes can become accessible to retail investors
