Arthena collections are fine art collections curated by notable experts who serve as our art advisors. Arthena members select a collection on our online platform and commit to back that collection. Then, the collection’s advisor leads the acquisition of works that they believe are of artistic significance and will maintain or increase in value during the five-year maturity period of the collection. Throughout this time, Arthena aims to turn its members into educated members of the art world and to prepare them to collect and appreciate art on new levels.
Information about specific collections on Arthena's platform is limited to the logged-in community of Arthena members who have verified that they qualify as "accredited investors."
Regardless of who can see the details of an individual collection, the collection's advisor, along with the company, will ultimately select which collectors can participate and invest.
There are millions of potential art collectors who want to be a part of the art world, learn about art, and be able to connect with leading galleries, curators, and advisors. Many of them don't know how to get started, or how to become a collector.
Arthena provides a comprehensive online platform tailored to the needs and desires of the next great generation of art collectors. We allow members to participate in co-collections with leading figures in the art world. This partnership means that our users can jointly collect and learn about great art that they might not ordinarily be able to access or afford. We also provide our members with access to our blog, which provides details on artists, works of art, exclusive interviews with artists and advisors, art news, and in-depth reports on the art market and art in general. Finally, collectors on Arthena are able to attend our event and lecture series, giving them access to galleries and art world insiders.
Arthena’s method of marketing and selling shares in Arthena collections relies on Title II of the JOBS Act. Title II became effective on September 23, 2013, allowing the general advertising of securities offerings, provided all purchasers of those securities are accredited investors. As Arthena's collections purchase artworks and not securities, thay are not governed by the Investment Company Act of 1940 or the Investment Advisors Act, and investors therefore do not benefit from such protections. Shares of Arthena's collections are securities offerings and are thereby governed by the Securities Act of 1933 and its stipulations regarding proper disclosures and rules against fraud.
The Jumpstart Our Business Startups Act (JOBS Act) was passed with bipartisan support by Congress and signed into law by President Obama in April 2012. Following on the success of donation-based crowdfunding, the JOBS Act now enables businesses to solicit funding from the general public – although only Accredited Investors are allowed to invest at the moment. The JOBS Act also aims to expand investment opportunities to non-accredited investors, who have historically been excluded from this process.
Equity crowdfunding is the offering of securities in a business or entity to a group of people (accredited investors) for investment. Because equity crowdfunding involves investment into a commercial enterprise or individual entity, it is often subject to securities and financial regulation. Equity crowdfunding is also referred to as investment crowdfunding and crowd investing.
Equity crowdfunding is a mechanism that enables broad groups of investors to fund startup companies and small businesses in return for equity. Investors give money and receive ownership of a small piece of that entity.
Arthena handles all administrative work associated with maintaining collections on the platform, allowing advisors and collectors to focus on collecting and enjoying great artwork. This includes legal work, verification of purchased artwork, insurance, and state-of-the-art storage and security for works owned by the collection.
Collectors also have the opportunity to participate in Arthena’s lecture series and to attend selected art world events. Collectors also have the opportunity to directly ask their advisor questions that they might have about the collection, works owned by the collection, or the art market in general. Arthena believes strongly that our members should be able to enjoy and explore art on their own terms. To that end, members of collections will be permitted to loan out works owned by the collection for display in their homes. Please contact a member of our team for more details about these services.
An accredited investor is someone who meets the standards set by the US Securities and Exchange Commission, which allow them to invest in certain private securities offerings. At this time, in order to participate in a Collection on Arthena's platform, you must be accredited.
In general, you are accredited if you are:
An individual with annual income over $200K (individually) or $300K (with spouse) for each of the last two years and an expectation of the same this year
An individual with net assets over $1 million (including spouse's assets), excluding the primary residence
An institution with over $5 million in assets, such as a venture fund or a trust
An entity made up entirely of accredited investors
Please see the SEC's website for the full definition.
If you are accredited based on income, you will need to provide documentation of income for the past two years. This can be in the form of tax returns, W-2s, or other official documents.
If you are accredited based on assets, you can provide recent brokerage statements clearly showing your name, the date, and the value of your account(s). We will also pull your credit report and deduct any non-mortgage debts (as long as the mortgage does not exceed the value of the mortgaged property) from the value of your assets to arrive at net assets.
You can also provide a recent letter from a reviewer like a CPA, attorney, investment advisor, or investment broker. The verification process will allow you to send an email to your reviewer using acceptable language.
Yes! We welcome users from all around the globe and are currently active on five continents. Individuals outside (or inside) the U.S. should consult a tax attorney if concerned about potential tax implications.
Yes. The regulations governing general solicitation require evidence of accreditation from all collectors, not just US-based collectors.
If you claim that you are accredited because you have over $1 million in net assets, then we have to verify your debts as well. Only total debts (excluding mortgages) will be included in your accreditation report.
Type of collecting entity (individual, trust, firm)
A letter from your attorney, or your designated third party advisor, stating that you have presented documents that indicate either income or assets above the required accreditation threshold
The date and total debts (excluding mortgages) from your credit report
The date you last confirmed you were still accredited
For institutions, we will provide links to the evidence of accredited status (government filings or other sources).
You must swear you are still accredited each time you generate a link to share an accreditation report. However, the proof needs to be updated only periodically. How often depends on what the collecting entity is (individual, firm, trust) and whether you use income or assets to prove your status.
Income proof can be used until April 15th of the year following its verification;
Asset proof can be used for 3 months;
Yes. Arthena's collectors must complete accreditation reports through their user dashboards.
Commitments are indications that a potential collector intends to join and invest in an advisor’s collection on the platform. When there are enough reservations for a particular collection (when it has reached the participation goal set by the advisor), committed collectors will be invited to formally join the collection as full-fledged members of the Arthena community.
Each advisor sets a target size for the collection that they plan to lead. The overall size of the collection is designed to allow the advisor maximum opportunities to acquire works they believe will make a high-quaility collection. Each advisor also sets the minimum amount that each collector must commmit in order to be accepted as a member of the collection. The amount will vary based on the collection and the individual advisor's needs but is generally between $5,000 and $10,000. Our advisors have found that when each collector provides this amount, the strength of the overall collection increases, and they are able to acquire elite works that collectors would not be able to acquire without the aggregate resources of the collection and the advisor's connections.
Arthena charges no annual management fee for any of the collections on our platform. Fund expenses associated with maintaining each collection are included in the target size of the collection set by its advisor and do not constitute an additional fee to collectors. Fund expenses include: legal and administrative fees related to structuring the collection, insurance on purchased artwork, storage costs, compliance and verification costs associated with authenticating purchased works, and administrative costs connected to management, reporting, and maintenance. Arthena charges zero additional fees to keep costs as low as possible for our collectors and can do so because we work with our partners in the art world to obtain the most competitive rates on verification, insurance, and storage.
Arthena takes what is known as carry (an industry-standard 20% of any profits) from each collection. Carry is calculated only after all principal investment has been returned. This is similar to the percentage taken by many venture capital firms, private equity firms, hedge funds, and platforms like AngelList and FundersClub. Arthena profits only when its collections profit, so we have every incentive to ensure the highest performance of each collection. In addition, the carry taken from each collection is split between Arthena and its advisors. We believe that allowing advisors to share in the profits of their collections as well as permitting them to invest their own capital ensures that they will use their best efforts and resources to craft and maintain successful collections.
Once a collection has reached its participation goal set by the advisor, collectors who are accepted will receive an invitation to sign documents and transfer money to the acquisition budget of the collection, which will then formally open.
When you join a collection, you will receive the following documents:
1. Documents related to the collection's formation such as its operating agreement, private placement memorandum, and subscription agreement.
2. Terms of the collection as well as templates of the underlying documents that the collection signs.
3. Qualitative information on the advisor’s collection thesis, professional background, and experience in the art world.
Carry is a percentage of any proceeds from a collection after its five-year life. If a collection returns overall net proceeds after all administrative and legal fees are removed and all of the initial commitments have been returned to collectors, the advisor receives a percentage of the remaining amount. After carry has been assessed, the remainder of proceeds are distributed proportionally to collectors.
Arthena collections have a maturity period lasting five years, giving advisors and their collectors enough time to explore the art market in depth and make responsible acquisitions of a number of elite works. Throughout the maturity period and at the closing of a collection, our advisors work with their private partners, as well as institutional partners like galleries and museums, to place works owned by the collection.
Any net proceeds at the closing of a collection will be distributed proportionally to investors based on the size of their intial investment, along with their initial commitment amounts, after carry has been assessed by Arthena.
Collectors do not invest directly in Arthena but rather in an investment vehicle in the form of an LLC that is created for each specific collection. The logistics of each collection are managed by Arthena and the fund administrator for each collection is Assure Fund Management.
Assure Fund Management LLC serves as the administrator of each Arthena collection. They are a back-office provider for many venture funds.
They have over 20 years of private equity investment experience, and a world-class team of experts will handle administration for each collection.