Collectable is a new marketplace and investment marketplace that allows anyone to own fractional shares of high-value offerings in the memorabilia markets. Previously, our company developed and maintained the #1 app for sports collectors – a sports auction data aggregation tool that provided pricing transparency and access to the entire market for free.
Here are some questions we are often asked, if you don't see an answer here then please contact us using the link in the header menu.
Yes. Collectable Sports Assets LLC offerings are all qualified with the U.S. Securities and Exchange Commission, under Regulation A.
Fractional ownership allows many people to share ownership in one item. With Collectable, users can purchase ownership shares of high-end sports memorabilia, giving them fractional ownership of that item.
As life-long collectors, we understand how frustrating it is to not be able to acquire scarce and desirable items that we believe will appreciate in value, but are simply unaffordable and out of reach. Collectable now allows anyone to participate in the same high-end sports memorabilia investment opportunities accessible to wealthy investors.
Additionally, collecting physical items can come with its own set of hassles – everything from listing, shipping, marketing, insurance, and maintenance. By owning fractional shares of an item on Collectable, you can leave those pain points to us! Simply enjoy the pride of ownership without any unnecessary burdens whatsoever.
Collectable’s team, along with our advisory board of industry-wide experts with decades of experience, carefully hand picks our offerings based on desirability, scarcity, market demand, and authenticity.
Ensuring the safety, security, and protection security of our offerings is of utmost importance to Collectable. All assets are fully insured and stored in best-of-class bank caliber vaults with state-of-the-art security monitoring and rigorous access control.
Collectable is committed to keeping costs as low as possible for our users, and to do so without sacrificing our high standards for authenticity, security and quality. Fees associated with the initial offering are fully incorporated in the initial offering price and disclosed in our Offering Circular.
In addition, there will be trading fees associated with buying/selling/trading on the secondary market. The fees will be kept as low as possible; however, the fees are necessary to license and partner with the best technology partners to facilitate a secure and dynamic secondary marketplace.
Once an asset is fully funded, and if you bought shares in that asset, you now own an equity stake in that specific item. If the value of this asset rises, so should the value of your shares. If we receive an offer to purchase the item at a significant premium, we will empower shareholders with a vote on the offer. Your vote will be weighted pro-rata to your ownership position. If a majority of shareholders vote to sell the asset, we will do so and every shareholder will get paid out.
Collectable partners with Templum Markets, LLC to provide a secondary market for our offerings. This allows users to sell shares to other new and existing investors.
Please Note: There is an initial a 90-day lock-up period once a user purchases a share of an asset. This means users will not have access to the money they invested for 90 days.
Fractionalization opens up the path to ownership for sports fans and collectors everywhere. We believe the lower price points will be quite beneficial to the secondary market. Our intention is to provide a robust secondary market to maximize liquidity. However, there is no guarantee that sufficient liquidity will develop for our vision to become a reality.
Collectable is not a broker, but we do partner with a FINRA & SIPC registered broker-dealer to administer our securities transaction. They facilitate the sale of our securities and ensure that all transactions are in compliance with FINRA and SEC regulations.
We have a seasoned network of acquisition specialists and advisors that help source the offerings for the platform. Our goal is to provide incredible assets at investable prices for our users. Authenticity and integrity is our primary concern when evaluating offerings.
Collectable is the ideal platform for professional athletes who want to share a piece of their career with sports fans, and collectors who want to sell their high-end memorabilia in a memorable way.If you are interested in listing an asset with us, please visit the “Consignment” tab on our website.
Yes, we do allow sellers to retain equity positions, or financial upside, in offerings sold through Collectable. Sellers must offer a minimum of 40% of the total asset value at IPO. Note: this is evaluated on a case by case basis, and not a guaranteed feature for all consignors. We assess each consignor and consignment to ensure incentives are aligned.
As long-time collectors ourselves, our goal here is to solve for an age-old conundrum: you love the hobby, believe your items will continue to appreciate, but you also seek liquidity and/or diversification.
Offering minority ownership stakes to the public is a widely-accepted practice on the public financial markets, and we are excited to bring this innovation to the sports memorabilia and cards market.
Anyone over 18 with a verified U.S. Social Security number is eligible to invest, but the Collectable marketplace and app itself are free and open to everyone. If you want to invest through a company or partnership, please contact [email protected].
We also plan to accept investments through IRA plans in the near future.
Collectable is currently available in the United States, though we plan to expand internationally soon.
Currently, you can fund your account in two ways:
1) by linking your bank account to Collectable via Plaid. Plaid is a secure data transfer network used by many of the world’s largest and most reputable financial services firms, including American Express, Venmo (Part of PayPal), and Fannie Mae. (Note: We recommend linking a checking account to avoid potential issues.)
2) by linking your credit card. Note, a credit card fee of 3.15% + $0.70 of each transaction will be applied to offset credit card processing fees and additional broker dealer fees. There is a $5,000 limit per transaction.
We will never authorize or facilitate funds from your accounts without your express permission and authorization.
When you sell shares, the proceeds will be added to your Collectable balance. You can view your balance at any time in the app. These funds can be used to make new investments, or you can simply withdraw them into your personal bank account.
Yes, but only when necessary for your reporting purposes. You will receive a 1099 if you have sold shares or if you have received at least $10 in dividends during a calendar year. If you simply purchased shares, then you won’t receive a 1099. Tax documents will become available through your portfolio in the Collectable marketplace in March of the following year.
No, the vast majority of the investment opportunities on Collectable are available to all investors, provided that you do not invest more than 10% of your annual income or net worth in any of our offerings. If you are accredited, that limitation does not apply.
All investments carry risks. Those on our platform are no different, so it is important that you understand these risks. The value of your investment can fluctuate—in both directions—and there’s no guarantee that there will be a buyer for your desired sell price if and when you want to sell.
Furthermore, memorabilia and collectibles are real assets, and while that is certainly part of their appeal, investing in these assets brings risks. The Offering Circular (“OC”) or the Private Placement Memorandum (“PPM”) details risk factors and is available for your review in the “Legal” section of the asset page for each asset. For additional information, please see: https://www.collectable.com/disclaimer/
We get it. We’re a new platform and you might be skeptical of investing your money until we earn your trust. Here’s what we can tell you: All of our investments are registered with the SEC, reviewed by a FINRA registered broker-dealer, and are subject to SEC regulations. In addition, we are committed to adhering to the highest standards of integrity, authenticity, and transparency – across our entire business. To us, trust is everything, and we are hoping to win your business over the long term.
We are always here to help! If you have any questions, please don’t hesitate to email us at [email protected].
As a financial platform that sells regulated securities, we are required to collect and store certain personal information about our investors. Think of it as similar to opening a brokerage account. Rest assured we hold ourselves to FINRA standards for information and data security. Highly-sensitive information, like bank account or social security numbers, is never stored on our servers. A record of your investments is kept with our broker-dealer partners and our banking providers. In addition, Collectable utilizes the data transfer network Plaid to link your bank account to our marketplace. Plaid is a secure service used by many of the world’s largest and most reputable financial services firms, including American Express, Venmo (part of PayPal), and Fannie Mae.
We will never authorize or facilitate funds from your accounts without your express permission and authorization.
All of the assets on the platform are safely secured, maintained, and properly insured. We have a responsibility to our shareholders to protect and preserve their investments, and we do not take this responsibility lightly. In addition, Collectable will always invest alongside you by participating in each investment offering, so our incentives are fully aligned to manage assets at the highest possible standards. In the highly unlikely event of asset impairment, any insurance settlement will be used to repair the asset to its previous condition (when possible), or paid out to the investors as a liquidation event.
Yes, very importantly, you will need to complete and sign a Subscription Agreement in order to finalize your trade. The Subscription Agreement will be automatically emailed to you via DocuSign immediately after someone has reserved shares. Unless the Subscription Agreement is signed, returned and accepted by us, your shares will not be fully reserved or confirmed.
Trades can take 3-5 business days to process while our broker dealer reviews all the compliance checks. This means that funds may not withdraw from your bank account for 3-5 business days. Occasionally, this can create a lag in updating your portfolio value(s). To verify your transactions, go to ‘Portfolio’ → Transactions tab. You will also need to verify that their Subscription Agreements have been signed and completed via the DocuSign email.
In our offerings, Collectable relies on a registered FINRA (the Financial Industry Regulatory Authority), which regulates broker-dealers, broker/Dealer to conduct trading activity. FINRA requires them (and us) to collect this information to determine whether the investment is suitable for each individual investor, given income, net worth, investment objectives, and risk considerations.
Collectable must collect this information in order to ensure that it is complying with the U.S. federal securities law. Ultimately, this step is designed to protect investors’ interests. This information will not be shared or used by any other entities other than our registered FINRA Broker/Dealers. If you are not an accredited investor, as defined in Rule 501 of Regulation D of the U.S. Securities and Exchange Commission (“SEC”, you are limited to investing no more than 10% of the greater of either their annual income or net worth in an offering. This limit does not apply to accredited investors.
Reg A+ is the mechanism by which Collectable is able to provide these investment opportunities to both accredited and unaccredited investors. In brief, Reg A+ allows companies to raise up to $50 million in capital from the public without a registered IPO. Reg A+ still requires companies to file with the SEC and have their offerings qualified by the SEC, but Regulation A’s restrictions and associated filing fees are significantly lower. Collectable essentially creates a separate corporate entity for each offering. The value of each corporate entity is then split into equity shares and offered via an “Initial Offering” where investors can purchase these shares and build their portfolios.
Collectable’s offerings are priced using numerous inputs, including but not limited to recent comparables, testing the waters, independent appraisals, expert opinion, and/or a consignors’ willingness to sell. Valuation, particularly in the collectibles space, is an inexact science and it is sometimes highly volatile; however, as a two-sided marketplace, we strive to balance fairness for both investors and consignors/sellers.
Like any market, the share price will rise or fall based on supply and demand. If there are more investors who want to buy shares than sell them, the price likely will rise. Likewise, if more investors want to sell shares than buy them, the price likely will fall. Demand for the offerings can be influenced by many factors, including industry comparables of the underlying asset, player performance, scarcity, relevance,newsflow, and a multitude of other factors.
Portfolio values will be updated whenever there is a change to a user’s holdings. Events that could prompt a change of value include investing in a new offering, purchasing more shares in an existing holding, fluctuations in the value of current holdings, or selling shares in an existing holding.
If you invest in an initial offering, once the offering is fully funded, investors may be able to sell shares after a 90 day “lock-up” via our secondary marketplace, should one develop. If so, sales may be made through the Collectable app.
At the moment, our system is “first-come-first served”. We recommend investors purchase shares immediately once an offering goes live on our platform. In the future, we may roll out a paid premium membership that will allow paying subscribers early access to offerings.
If you are not an accredited investor – yes – those limits are described above. Collectable will attempt to reserve a percentage of each offering for unaccredited investors. Additionally, Collectable will continue to test the best approach in regards to share limits. Prior to the solicitation of subscriptions, any and all share purchase limits will be fully disclosed in our app.
We are hoping to provide more information on potential secondary market trading frequency in the coming months. Collectable’s vision and mission is to provide a dynamic secondary market with trading access at least five days a week; however, there is no assurance that this market will develop or, if it does, that that sufficient liquidity will establish itself or secondary market technology will allow our vision to become a reality.
Trust, integrity, and authenticity are the central tenets of Collectable’s existence. All offerings on Collectable are and will be authenticated by reputable third-party grading and authentication companies.
Collectable intends to provide a steady cadence of offerings within the sports memorabilia and sports card space. Check back regularly in the app and follow our social media accounts for updates!
Unfortunately, if there is limited share supply and high demand, this scenario could happen. Luckily, after the initial 90-day lock up period, investors may have an opportunity to purchase shares on the secondary market.
Yes, Collectable will email you a digital share certificate once the offering is completed. We will continue to experiment with physical representations of asset ownership as we grow.
I know that sellers are able to retain equity. What happens when a consignor is a majority shareholder?
Collectable allows consignors to retain equity interests in offerings sold through our marketplace. In some select cases, in an effort to bring the highest-quality items to Collectable, a consignor may retain majority ownership, and in some cases, control of the asset. In most cases, the majority of shareholders will simply own the majority of the economics of the offering with no effect on minority shareholders. However, majority control could become a risk factor if an attractive offer was made to acquire an underlying asset an the majority owner could prevent that. All majority shareholders would have an obligation to review and evaluate any tender offers received; however, shareholder approval is not required in order to either accept or reject an offer. The power to sell the underlying assets, except in the case when an asset seller has retained control, is exclusively in the manager and shareholders have no vote on that issue.
If an attractive offer to physically acquire an underlying asset is received, Collectable will poll the shareholders of record as to their desire to sell at that price. Should the majority favor a sale, the offer will be passed to Collectable’s Advisory Committee. Collectable’s Advisory Committee is composed of leading experts and experienced collectors. Should they elect to accept the offer, the item will be sold and shareholders will be paid out pro-rata to their ownership position.
Our main point of differentiation is our area of focus. Collectable’s focus is solely on sports memorabilia, sports cards, and related sports investment opportunities. Our goal is to provide a consistent supply of investment opportunities that previously might have been unattainable or simply unaffordable to sports fans, investors and collectors.
All assets on the platform are properly insured. In the unlikely scenario the asset owned by the series in which you invested gets impaired, any insurance settlement will be used to repair the asset to its previous condition (when possible), or paid out to the investors as a liquidation event.
Like most investments, you will need to pay taxes on any short-term or long-term capital gains and/or dividends realized as a result of your investments through Collectable. Please consult your tax advisor or accountant for individual tax considerations and recommendations.
Collectable receives a sourcing fee on any offering that is successfully funded and completed. In order to properly align our interests with that of our shareholders, our sourcing fees are a combination of cash and equity within the offering. Our fees are fully incorporated into the listed offering price listed and fully disclosed in our Offering Circular. You can find our Offering Circular and other reports we file with the SEC here: https://sec.report/CIK/0001804446
Unfortunately, this is not possible directly through our app at the moment.
As mentioned above, we have on file with the SEC a detailed Offering Circular that discloses the details of our offerings as well as the risks associated with an investment. Again, you can find our Offering Circular and other reports that we file with the SEC here: https://sec.report/CIK/0001804446. We recommend that you read the Offering Circular as well as the exhibits attached or referenced in the Offering Circular prior to making an investment.
The Collectable Early Access loyalty program is accessible to all users who participate frequently on our platform. It is designed to make sure our most loyal users aren’t shut out of IPOs they want to participate in, and designed to ensure everyone has democratic, transparent, and consistent opportunities on our platform.
Here’s how it works: for every 10 offerings in which a user invests on Collectable, regardless of how much or little they invest per offering, they receive 1 Early Access credit to a future IPO of their choice. Then every Saturday afternoon (EST) we send eligible users a link to request shares in the upcoming week’s IPOs, up to the maximum pre-order allocation for that offering.
Extra note: In the near future, we will also create a path for further Early Access credits based on loyalty and support shown through non-monetary means, such as sharing/liking, referring users, or participating in Collectable’s events.