Are you tired of the traditional investment platforms and looking for something new and exciting to spice up your current investment portfolio? I so, you might be interested in finding out more about a new alternative type of investment method. Vinovest is a financial firm that provides a platform for investors interested in adding shares in fine wines to their portfolios. Vinovest helps its clients to build a portfolio of wine investment that is commensurate with the risk profiles. It's a firm that specializes in providing managed portfolios of fine wines across a global network of insured facilities. If you're not yet familiar with the investment platform, here are 20 things you didn't know about Vinovest.
1. Vinovest is an attractive option for investors
According to Crunchbase, the Vinovest platform has made investing in fine wines easy for its clients. It provides help building portfolios that have consistently outperformed the S&P 500. These two facts about Vinovest make it attractive to investors of all kinds including those who are more experienced and newcomers to investing.
2. Vinovest has a three-member executive leadership team
There are three members of the executive leadership team at Vinovest. Hogan Lee is the head of operations. Brent Akamine is a co-founder. Anthony Zhang is a co-founder and chief executive officer. Akamine and Zhang are both credited with the founding of three organizations.
3. Vinovest is still in its infancy
Vinovest is making impressive progress in its development. This is even more spectacular as the firm has only been in operation since its founding in 2019. It has only been in business for two years, but it is already making news in the business sector because of its growth and attractiveness to investors. It maintains unique posturing within the investment arena because it makes it so easy for people to invest in the wine industry. The platform is unique in that it provides automation for investment best on current trends and performance data within the wine industry.
4. The Vinovest website use complex technology
Vinovest has a high overhead when it comes to the technology that is used to power its website. While users enjoy a seamless and smooth experience, there is a lot that is going on behind the scenes. The Vinovest website actively uses 30 technologies simultaneously. Some of the examples include Google Analytics, iPhone Mobile Compatible, Viewport Meta, and many others. Vinovest has not disclosed the annual budget for its use of technology products and services, but from previous experience, we're aware that this high number of products quickly reaches into the tens of thousands of dollars annually as a budget/expense line item.
5. Interest in Vinovest is high
The Vinovest website is a good indicator of interest in the products that it offers for consumers in the investment arena. The analytics for the site shows that there is high interest in the investment platform with high web traffic. The average number of monthly visits is 96,312. Based on the monthly numbers of visitors, the Vinovest website is ranked as number 290,333 of the millions of websites registered on the world wide web.
6. Vinovest is the most popular in the United States
The statistics for the Vinovest website show that the majority of visitors are from the United States. Seventy-nine percent of the web traffic is from this country with a monthly rank growth of 22.61 percent. It is the second most visited by people from the United Kingdom which has six percent of the visitors. This is followed by five percent of web traffic from Singapore, three percent from Canada, and two percent from India. The benefit of tracking this statistical data is to give the leadership an idea of where there is interest in the goods and services and which markets show good potential for growth and expansion.
7. Vinovest is an early-stage venture capital-backed business
Vinovest has participated in one round of venture capital funding. In a Seed round that closed on September 20, 2020, Vinovest raised an undisclosed amount of funding. Six investors joined in the event including Rainfall Ventures, Kevin Breay, UpHonest Capital, GFR Artists, Invariantes Fund, and Fernando Pontaza. The seed funding round gave Vinovest the needed financial boost that it needed to firmly establish its infrastructure and to launch its operations. Overhead is always a concern for new companies because of the necessity to make initial cash outlays to become established.
8. Vinovest is an alternative investment platform
According to Techcrunch, the way that people invest is changing. Investors of the Gen Z and Millennial generations are moving away from traditional public equity investments. Vinovest is getting into the investments industry at a time when the platform is widely accepted as an attractive alternative. Investors see the opportunities to make money in alternative assets such as Vinovest's wine-centric platform. The company is participating in a new frontier in investment strategies with its industry-specific alternative investment platform. The driver is more of a passion for the asset even more than for a fast return on their investments. This is one of the factors that makes alternative investing attractive to them. They're also looking for portfolio diversification.
9. Vinovest's portfolios start at $1,000
In case you're wondering how much it takes to get started with Vinovest, the minimum investment is $1,000. According to Yield Talk, the platform takes this investment and distributes it over wine assets based on the information that you provide in your risk profile. It stores the information for you and also manages the investment. This makes it easy for you to invest in fine wines without the need to find the best companies to invest in on your own.
10. Vinovest investments have advantages
The advantage of Vinovest for the average person is that it is open to all investors who can make a minimum investment of $1,000. It has a low market correlation. The portfolio is fully managed and this includes storage. Investors can liquidate their investment at any time of their choosing.
11. There are a few downsides to Vinovest
While Vinovest is a new alternative investment platform with multiple advantages, there are also disadvantages. The list of cons, however, is short. The company has only been in business for two years, so it has a short track record. The company provides minimal information about how your portfolio is selected. Investors have no idea how the assets for inclusion are chosen, at if you decide to sell your portfolio, it's not instant or immediate. Reports from investors confirm that portfolio selling can take as long as six weeks. These are a few factors that make the platform a bit less attractive to some investors.
12. Vinovest has been mistaken for a crowdfunding platform
There has been some confusion about the Vinovest platform because of its structuring. Some investors looking for exotic assets have come across Vinofest lumped in with crowdfunding options, but it is not technically ranked in that category. We did discover, however, that they do send some investors some of the wines they invest in to sample.
13. Some investors can choose their own assets with Vinovest
The initial $1,000 investment in the Vinovest platform is distributed across assets that are chosen by the Vinovest professionals. Investors have no input into how this amount is invested, however, future investments are different. Investors have the option of choosing their own portfolio. Vinovest manages the assets that are chosen by the investors for them as a complimentary service. This provides those who choose to go beyond the $1,000 initial investment with more freedom and power to choose the assets within the wine industry that they are the most interested in. This makes investing with the Vinovest platform more attractive for those who can put more than $1,000 into the platform.
14. There are age restrictions for investors
Vinovest is open to all investors, however, there are some age restrictions associated with the platform. It is a legitimate investment tool that anyone who is at least 21 years of age can use. The reason for the age restriction is because the asset falls under the category of 21. The legal drinking age in most states is 21 years of age. Persons under this age cannot legally purchase alcohol and they cannot invest in assets related to the alcoholic beverage industry.
15. Vinovest's alternate assets involve tangible goods
When an investor makes an investment in Vinovest they are actually purchasing bottles of fine wine. Vinovest physically stores these assets (bottles of wine), in a secure facility that is insured and climate-controlled. Investors have the option of traveling to the sites where their bottles of wine are stored to visit. They may also obtain photographs of their assets upon request.
16. Vinovest is not a securities platform
Vinovest is different than most other traditional investment platforms. There are no securities purchased because the assets are physical and are taken into possession when they are purchased. The values of the bottles of wine stored for each investor have adjusted in accordance with the current market conditions. Investors may choose to monitor the market conditions and values through the online Vinovest platform.
17. Vinovest charges an annual fee
For anyone wondering how Vinovest makes its money, they do so by charging an annual fee for its platform. The yearly cost is 2.85 percent which goes toward the cost of buying and selling the wines that are held in a portfolio. It also helps to cover insurance, storage, and the staff wages for managing the portfolio. The higher the investment, the better the annual rate. For example, a $50,000 investment results in the rate of 2.85 percent per year to 2.5 percent.
18. Vinovest does not pay dividends
Investors need to know that the Vinovest platform does not offer the option for dividends. Since the investments are made on physical goods, the only time that there is a cash flow is when an investor sells the bottles of wine, also referred to as liquidating either part or all of the investment. The average turnaround time for liquidation is between four to six weeks.
19. There is a reason why liquidation takes so long
When an investor decides to liquidate his or her investments through Vinovest, the company does not merely buy back the wine. Instead, they sell the bottles of wine to other investors. It can take a while for Vinovest staff to find other investors with an interest in making the purchase. This is why it can take between a month or even a month and a half to receive a return on your investment, or take a loss, whichever the case may be.
20. Vinovest investors are diverse
The buyers who use the Vinovest platform are not limited to wine lovers or individuals. There are many types of buyers and some of them are very large corporations. Some clients of Vinovest include big importers, hotel groups, restaurants, and other corporate investors. It is an all-inclusive platform for anyone over the age of 21. It is a diverse platform. All investors must complete a personalized quiz to determine risk and return profiles. Some information listed includes the amount desired to invest and other personal information. Vinovest sources its wines directly from the wineries, merchants, and global wine exchanges. They maintain total transparency about the fair market value and they buy and sell the wines in accordance with the data contained therein. Investors preferring to picking their own wines must invest a minimum amount of $50,000. It is also essential for investors to know that the SEC does not govern the activities of Vinovest because you're purchasing bottles of wine versus security. The alternative type of investment is similar to investment crowdfunding, but it is firmly categorized as an alternative investment platform vs a crowdfunding investment category.
Written by Allen Lee
Read more posts by Allen Lee