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Feral Horses

Favourite

Logo square

The Art Stock Exchange.

SEIS

Location
London, United Kingdom
www.feralhorses.co.uk

Categories: Finance & Payments Mixed Digital/Non-Digital B2C

Investment
sought:
£100,008
Equity
offered:
5.26%
Funded 20 Apr 2018
Investment
amount:
£135,342
Valuation
(pre-money):
£1,800,000
  • Overview
  • Idea
  • Market
  • Team

Team

  • Square france
    Francesco Bellanca
    CEO
  • Copie de 19901
    Lise Arlot
    CMO
  • Chriatian square
    Christian De Martin
    CFO
  • Carlo square
    Carlo Bellanca
    CTO
  • Romano square
    Romano Oliveri
    Art Director

Idea

Download

Introduction

Our online platform allows retail investors to invest in art by buying and trading shares of artworks.

Primary market


On the “Primary Market”, users can browse the pieces of art that were sourced from promising European Artists and Gallerists and get to know about each artwork’s story and each artist’s career in order to individually decide what to invest in before the end of the selling period. 

At the end of this period, the artworks that have reached the threshold (min target of sold shares) enter our “Secondary Market” where users can freely trade and put their shares on sale. The artworks not reaching the threshold simply exit the platform and the investors get a full refund.

Also, we manage the physical artworks. We take care of insurance and transportation of the artworks. On the top of that, we have recently launched the offering of our collection for rental to privates and businesses, with the aim of generating both visibility and a source of revenue that gets divided among the share-owners, just like a dividend.

Secondary market

Intended impact

The alternative asset market is booming. However, a high-profit asset like art can still be inaccessible for the majority of investors as, we believe, it has high barriers to entry, both on information need and capital.

From a social and ethical point of view, we strongly believe in the fact that the beauty of the art should be available to everyone that is interested in it, and not the few, that, till now, could afford to own it. For this reason, we have built a stock exchange for art, where we allow anyone to buy shares of premium artworks on a platform that gives investors all of the flexibility, freedom, and unbiased information that they need to diversify their portfolio.

By having a secondary market, where participants can buy and sell shares, we are also aiming to create more liquidity for an asset that is traditionally very illiquid.

On top of that, the artworks are rented out to businesses, which we estimate will generate up to 10% a year in dividends for the investors.

Fh art collection 1

Substantial accomplishments to date

- Launched the beta platform (April 2017).
- Sold our 'market-test' portfolio of 17 artworks, which had total asset value of £121,000 in 63 days (Spring 2017).
- Reached 700+ registered users (November 2017).
- Reached 60 investors.
- Reached almost 6K followers on IG (December 2017).
- Put together an art festival: a two-week-long pop-up gallery showcasing our first portfolio (December 2017).

Please note that the company has taken legal advice and, based on the current regulatory environment and the structure of its business, does not believe that it requires regulation. The company will continue to monitor the regulatory requirements as it grows.

Fh team  serious

Monetisation strategy

Feral Horses' business model is commission based:

We charge Artists and Galleries a 20-30% commission on each sale on the primary market.
We charge a 1% commission on each transaction conducted by platform users selling shares on the secondary market.
We also charge a small commission for each rental client: between 3% and 7% of the total value of each rental contract.

Nfc technology

Use of proceeds

Next year, we want to focus on consolidating our market position by developing long-term art rental and art sourcing agreements while continuously improving our product. Consequently, the funds will be allocated as shown below:

Tech 36%
Business development 26%
Growth 26%
Other 13%

Market

Target market

As of 2015, global art sales reached $63.8bn. However, we believe that the art investment market is totally inefficient as it only capitalises on major collectors and investment funds and it leaves out the majority of the potential investors. Additionally, the lack of information and the high minimum investment ticket can be huge entry barriers factors that create low volumes and low liquidity.

The target user of Feral Horses is part of a younger audience: the millennials. He or she is tech and finance and increasingly curious to discover new alternative assets to invest in.

Just you and me by simone fugazzotto

Characteristics of target market

As of 2013, in Europe alone there were an estimated 120M Millennials, of which 45% are more willing to invest than 5 years ago (Blackrock, 2015).

However, their investment behaviour is different from past generations. One reason is that millennials mistrust traditional investment options but at the same time are in need for micro-investments as most of them still owe large amounts of student debts. Consequently, they are widely looking for new micro investment options including alternative assets that match their values and interests. Art could be the perfect asset for them if only they had the possibility to invest small amounts of money and the right tool to do so.

Portfolio

Marketing strategy

Feral Horses is going to capitalise on two key channels:

The Art Galleries: by collaborating with influential art galleries, Feral Horses plans to grow through these players' established online and offline presence. We think our service will allow gallerists to finally interact with art enthusiasts who are regularly visiting their physical space but cannot afford to start a collection. Additionally, we plan to conduct pre-sales with the galleries/artists offline channels to kick off the sales. To finish with, we believe art gallerists are the perfect partners to share content online and educate users about the benefits of art investments.

The Money Apps: By collaborating with diverse money apps, we hope to be able to get in touch with the most personal finance savvy segment of our target and offer our service at a key moment of the micro-investment decision-making process.

Fh art collection

Competition strategy

Our strategic position in the market allows us to avoid negative direct competitive relationships with existing players, as we position ourselves as an enabler for artists, galleries, and small art investors. We see our platform as a tool for artist and galleries to use to reach out to the art enthusiasts who follow them online and visit their space but cannot acquire entire artworks due to the current high barriers to entry.

Nonetheless, the ArtTech space is increasingly getting attention, with more and more companies building solutions to invest in art.

We think Arthena is doing a brilliant job, creating more accessible funds with good in-depth analysis of the assets.

Maecenas is focusing on the crypto-lovers, creating a token that can be used to invest in art.

Feral Horses, however, is the only mass-market solution to our knowledge with an unprecedented minimum ticket of £5. We also combine dividends (coming from the rental) and the possibility for users to freely create their own art portfolios.

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Investing carries risks, including loss of capital and illiquidity. Please read our Risk Warning before investing.

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This webpage has been approved as a financial promotion by Seedrs Limited ("Seedrs"), which is authorised and regulated by the Financial Conduct Authority. It is not intended to be a promotion of any individual investment opportunity and is not an offer to the public. The summary information provided about investment opportunities on this webpage is intended solely to demonstrate the types of investments available on the Seedrs platform, and any investment decision should be made on the basis of the full campaign. Full campaigns are available to investors who have become authorised to invest on the Seedrs platform. All investment activities take place within the United Kingdom, and any person resident outside the United Kingdom should ensure that they are not subject to any local regulations before investing.

Seedrs does not make investment recommendations to you. No communications from Seedrs, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Seedrs does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Seedrs, you should consult a professional adviser.

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Seedrs Limited is authorised and regulated by the Financial Conduct Authority (No. 550317).

© Seedrs Limited 2019. All rights reserved. Seedrs is a registered European Community trademark (No. 008771537) and registered United States service mark (No. 85423072) of Seedrs Limited, a limited company registered in England and Wales (No. 06848016), with registered office at Churchill House, 142-146 Old Street, London EC1V 9BW, United Kingdom, VAT No. GB 208 3065 32. Seedrs.com is a website owned and operated by Seedrs Limited.

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.
This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.