SeedBlink Blog

Risto Kaljurand is the Co-Founder and CEO of WineFortune, a FinTech startup. With a strong background in project management, sales, and B2B marketing, followed by a degree in economics from Tallinn University of Technology, Risto brings a blend of different business skills to the table.

Founded with the mission to democratize wine investing, WineFortune offers solutions like a machine-learning passive-fee investment fund and a subscription service for wine list shares. These products enable investors to easily invest in high-demand wines and provide wholesalers with a centralized platform to access a wide range of fine wines from well-aged vintages.

1. What ‘aha’ moment led to the founding of WineFortune?

My co-founder Paavo and I attended a wine-tasting event where we discovered that the other participants were not only interested in enjoying the wines but were also exploring investment options.

As we looked deeper into the topic, we learned that proper storage is crucial for wine investing. From there, our idea evolved from just storage solutions to comprehensive investment solutions. Today, we have a full platform offering multiple wine investment opportunities, catering to investors with various focuses, regardless of their level of expertise or financial status.

2. What was your drive back then, and what change did you aim to make?

Years ago, I began exploring physical assets to add to my personal investment portfolio. When I discovered wine investment opportunities, the entry barriers were too high—minimum investments starting at €10,000. Therefore, it became WineFortune’s mission to lower the minimum investment requirement and make this asset class accessible to all investors, regardless of the size of their portfolios.

3. How does WineFortune's platform contribute to the wine investment market, and what specific market gap does it address?

Classical investors often don't understand the wine market, so we have made it convenient for them to enter this asset class with our actively managed fine wine investment fund.

Fine wine enthusiasts seek access to world-class fine wines, and we have made it possible for them to tap into the largest fine wine database in the world—Liv-ex—which is otherwise only accessible to businesses. Through our wine list subscription service, we have preselected wines that are in their perfect drinking window for them to choose from.

Looking at the fine wine market in a broader sense, it lacks advancement in terms of data and technological innovation. We are on a mission to change that by incorporating data-based decision-making and machine learning into our products. Fraud is a significant issue in the luxury market, and wine is no exception. We aim to reduce fraud and ensure that wine lovers can enjoy the actual wine they have paid for.

4. How do you scale your business model?

By leveraging technology and strategic partnerships we can enhance wine investment outcomes and user experience. This will grow fine wines as a potential asset class to invest in for the classical investors. This will also provide a convenient option for fine wine enthusiasts to access wines in the perfect drinking window when they are ready to enjoy it.

On the other hand, we are continuously expanding our network of wine producers and wholesalers to have the best selection of wines available. This is a huge obstacle in the fine wine industry - you need lots of connections and partners, but even still it is hard to get access to well-aged wines. But these wines are most demanded by wine lovers.

When it comes to our specific growth strategy, we plan to do it through strategic partnerships with financial sector banks and companies. Also, with affiliates to attract and retain a broader retail investor base.

5. How does WineFortune guide and empower investors to make informed decisions about their wine investments?

We have simplified the decision-making process for our investors by offering two main options for wine investing:

• For those interested in wines purely for capital gain and dividends, the fund is the ideal choice.
• For those who would like the option to enjoy the wines they have invested in, the wine list subscription is perfect.

With the fund, investors have a straightforward path, while the wine list subscription offers flexibility with various options to match personal preferences. This approach bridges the knowledge gap between the intricacies of the fine wine market and translates them into easy-to-understand investment choices.

The decision-making process is further supported by detailed data on our platform and a regular newsletter to keep customers updated on historical performance, market trends, and expert reviews. Additionally, we host monthly or bi-monthly online and offline events to educate customers about several aspects of fine wine and wine investment. We also provide comprehensive customer support to address any questions our clients may have.

6. What are potential exit scenarios for investors supporting WineFortune?

• Scenario 1: Vivino will acquire WineFortune. Their goal is to build a platform where users don’t make just a picture of wines but can always order the most favorable wines to their doorstep too. Their biggest obstacle is that wholesalers don’t have wines older than 10 years, while these wines are just exactly in their perfect drinking window. Our platform would solve this problem for them by becoming a key component in their value chain.
• Scenario 2: Getting WineFortune publicly listed on the AIM (Alternative Investment Market) in the London Stock Exchange, and subsequently on the SSE (Shanghai Stock Exchange). This would make us publicly available on two continents where demand for fine wines is the greatest.

7. How do you envision WineFortune's future growth within the wine investment sector?

WineFortune’s primary goal is to become the world's leading fine wine platform for both investors and wholesalers. This would enable us to control the entire value chain from producers to investors to wholesalers who can later sell to the end customer.

How would it work? We would establish direct connections with wine producers to secure the best deals on the market. Investors would use our platform to allocate their investment capital, which we would then manage and grow most profitably. When it is time to sell the wines, we can easily sell them to interested consumers through wholesalers.

Our business model includes generating revenue through transaction, management, and success fees. The management process would be fully automated through AI, which would handle technical market analysis, purchasing the right wines at the optimal times, and selling them to the right parties at the most profitable moments. The physical planning of wine storage would be in Belgium and London through Liv-ex, which has a global network of storage facilities.

8. Do you have a mentor or figure within the investment or wine industries whom you admire and draw inspiration from?

As a business, I admire the LVMH group for how they are building a holistic value chain within the fine wine industry. Their investment and business portfolio includes wine producers, cork manufacturers, glass and packaging factories, transport companies, as well as media publications and exclusive distributors. This aligns well with WineFortune’s goals.

As a person in the industry, I deeply respect Heini Zachariassen, the founder of Vivino, with whom I have had very insightful conversations about the future of the fine wine industry. We have discussed how our business futures can be mutually beneficial and provide a potential exit strategy for us.

9. Why should investors consider being part of WineFortune's journey?

The global fine wine market is expected to grow from $340.23 billion in 2021 to $456.76 billion in 2028. This is a market where demand always exceeds supply. WineFortune aims to make investing in fine wine as simple and accessible as crowdfunding has made real estate investing. Additionally, it offers distributors the opportunity to access a curated list of aged vintages of the world's best wines, which are highly sought after by customers, without needing to store them for years in their limited warehouse spaces.

As an investor, you can become a shareholder in a company with the potential to grow into a billion-euro enterprise within the next five years.

Explore the opportunity on SeedBlink.