“From the opportunity to diversify one’s portfolio to the pleasure of owning a rare collectible asset, from historically consistent annual returns to the knowledge that one is part of a community that shares the same passions. Konvi offers this and more, the first pan-European crowd-investment platform providing access to alternative assets traditionally exclusive to the retail 2.0 investor. With a mission: to create equal opportunities for enthusiasts or the curious, regardless of portfolio size. With Lena Sonnen, Co-founder & managing director of Konvi, we talk about the motivations (and goals) behind the birth of an exciting investment opportunity and a young and motivated company.
How did the idea for a business like Konvi start? When did you think, “”hold on: there is an interesting opportunity hiding here””?
“”Konvi was founded in 2020 amid the Covid-19 crisis with the full belief that all retail investors should have the same financial opportunities as large investors regarding the asset class. My co-founders and I are retail investors with a passion for luxury assets,”” Sonnen explains.
“”Beyond that, there is the concept of diversification. Information magazines and business textbooks always emphasize how crucial it is to diversify one’s portfolio to fit the risk profile and provide the right stability and returns. However, for neophytes or small retail investors, most asset classes that allow effective portfolio diversification because of their low correlation with other assets are out of reach. This is due to the high barriers to entry in terms of minimum investment for luxury assets such as rare watches, fine wines, whiskey, handbags, and more. However, these luxury assets can have very high potential returns. For example, based on the historical average returns of some of our suppliers, watches can return 15-20 percent annually, fine wines 8-9 percent annually, and whiskey 9-12 percent annually.””
“”In line with recent trends of democratizing the stock market through fractional ownership offerings, we believe it is time for traditionally exclusive alternative assets to be made accessible to the broad population. Especially in current times with a negative outlook on equity markets and alarming inflation rates, retail investors are looking for effective new ways to diversify their wealth and invest in assets that possibly serve as inflation hedges.””
Why have you chosen to devote much of your business to rare watches?
“”Konvi is designed to become the one-stop-shop alternative asset platform for any exclusive high-yield asset class that is difficult for the average investor to access,”” Sonnen continues. “”We inaugurated Konvi with an initial project focused on investing in rare watches because these are a beautiful, high-yielding category. In addition, we enjoy a strong track record and network in this market. This was followed fairly quickly by investments in fine wines and whiskey, a recently launched project. Our network will soon help us launch new investment opportunities.”” Please give us some anticipation about this. “”Let’s just say that our community will very soon be able to invest in classic cars,”” Sonnen reveals.
Now let’s talk about investors. Is it more a passion for alternative assets or curiosity that drives them to Konvi?
“”We think it is a combination of both,”” Sonnen continues. “”Investors on Konvi are driven by the motivation to diversify their financial portfolios with asset classes that have different characteristics than traditional assets such as stocks, bonds, cryptocurrencies, etc. This can give them a stronger financial portfolio during economic downturns and greater stability during high inflation.”” “”In addition, many investors are also fans of rare assets and understand the role of scarcity in exclusive assets and investment opportunities. For example, owning a watch in only 15 other units or even a unique piece gives them joy. This is especially true when you can see your asset live in a Konvi museum or show it to your friends in the app.””
Does Konvi cater to an ‘ideal’ investor?
“”There is no ideal investor when it comes to Konvi, as anyone can invest in exclusive assets through our app,”” Sonnen points out. “”Our mission is to identify a ‘typical’ investor rather than an ideal one. To name a few goals: diversification of the existing financial portfolio by shifting 10-20% to alternative assets, low to medium risk profile, and long-term investment horizon of 3 to 5 years.””
What is the most valuable item you have in your portfolio?
“”Konvi’s first community-funded watch was an ultra-rare Cartier watch called Cartier XL Tortue High Complication Platinum, which exists in only 15 pieces worldwide and has a recommended retail price of $500,000,”” Sonnen concludes.
