How It Works
A Platform for “Crowdfunding” Stringed Instrument Purchases
Traditionally, violinists, violists and cellists have depended on loans from collections of the ultra-wealthy. But this doesn’t often make for an ideal match of instrument and musician. Strumenti solves this problem for musicians. All our instruments are chosen by the artists, who engage with their patrons help acquire them.
Time and again, string musicians report that access to a quality instrument is an important advantage in big career steps, such as gaining entry to a conservatory or winning an orchestral audition. Learn more
We Work with the Musician
We work with up-and-coming musicians who will most benefit from a new instrument, and who have an active patron community to support their effort to finance an instrument.
We Help Source the Instrument
We identify only highest quality investment grade options. The musician selects from among these an instrument that is a match for their unique playing style.
We Take Care of the Paperwork
Each instrument is owned by its own LLC as an investment vehicle. Strumenti takes care of legal paperwork, regulatory filings, and banking transactions associated with the group purchase
How it Works for Patron-Investors
Patron-investors will become partial owners in an LLC that will acquire the instrument and loan it to the musician to play. You will receive updates on where you can hear the instrument in performance.
Accredited investors can complete their investment paperwork completely online, quickly and securely, with just a few clicks. Access your investor dashboard anytime to see the status of your investments, retrieve tax paperwork, and get updates on the artists.
Investors are committing to support the artist. Part of that support is committing to allow the musician to play it for a long period of time without expecting it to be sold for the initial 7-10 year hold period. Therefore, liquidity opportunities are limited.
Early Liquidity
Periodically, we will offer to facilitate early sale options, e.g. to the musician or another investor, for a fairly negotiated price.
Charitable Gifts
We are happy to help facilitate gifts. Strumenti shares may be pledged and/or transferred to approved nonprofits, which might have tax benefits.
Identifying Investment-Worthy Instruments
We crunched the numbers
Using publicly available auction data, we’ve identified the violin makers that have held value well over time. And we look at which makers are currently in demand and likely to have price momentum.
Instruments from trusted sellers
The majority of instrument sales are private. We have relationships with a global network of reputable sellers. This is key to acquiring quality instruments at attractive prices that we can feel good about offering to investors — and to musicians.
Investment Criteria
Maker reputation and model
Condition of the instrument
Provenance (clear chain of ownership and notable former owners)
Learn more about what makes a violin a good investment.
Fees and Expenses
Strumenti takes care of all the details — for the entire 7-10 year hold period. We use upfront fees to cover all anticipated expenses. This helps to ensure the long term viability of the LLC and continued care for the instrument.
These expenses include:
Acquisition, transport, maintenance and care
Worldwide insurance for the instritument
Promotion of the musician playing the instrument
Marketing the instrument
Legal fees
Securities compliance and other regulatory and tax filings
Accounting for the LLC
Annual tax paperwork
We also set aside some additional cash just in case funds are needed to care for the instrument. Unused reserves are returned to investors.
A sponsor fee is collected as a proportion of proceeds on a sale, and is only collected if the instrument is ultimately sold for a profit. This way Strumenti is aligned with musician- and patron-investor interests only to sell the instrument for a fair price.
This summary of the generally applicable fee structure which may vary from instrument to instrument.
Prospective investors must review the entire specific set of offering documents for important additional disclosures.
Patron-Investors must meet requirements
Our offerings are currently only open to accredited investors, which means you must meet certain income, net worth, and/or other requirements under SEC guidelines. The first time you invest at Strumenti.com, you’ll be asked to provide evidence to support your accredited investor status.
Frequently Asked Questions
How do you make “shares” of a violin?
Each individual instrument will be acquired by a single limited liability company (known as a “special purpose vehicle” or SPV). When you invest, you will be purchasing a certain “member interest” in that SPV. You will literally own a portion of a company that holds the instrument. If the value of the instrument goes up or down, then the value of the SPV should change proportionately (net of fees and expenses).
Can anyone invest?
To participate in current Strumenti offerings, patron-investors must be a “accredited investors” under SEC guidelines. You will need to provide documentation as part of the registration process. In addition, minimum and maximum investment amounts may apply for each offering and be listed in the offering details. Typically, the minimum contribution will be $10,000.
What if the instrument is damaged?
All our instruments are subject to strict use and maintenance guidelines. Nonetheless, there is always a risk that an instrument gets damaged while in use with a musician. For this reason, every instrument will be insured and your investment will include expense allowances for maintenance and repairs. Read more about instrument maintenance.
When can I sell my stake? / How does liquidity work?
Strumenti offerings should be viewed as long term investments, generally 5-10 years. However, we understand that investors may want to prematurely liquidate (or "redeem") their stakes. After the first year of any investment, we expect to be able to begin receiving requests to sell some portions. Approval of such requests will be case by case, and is likely subject to a finding a willing buyer among our existing investor pool (including possibly the musician). There may be costs associated with such transfers, if approved. Investors should be prepared not to be able to liquidate their investments until the instrument is sold.
Is the musician also an investor? Can they buy the instrument over time?
Yes! Our musicians typically will personally invest in the instrument, and we will do our best to facilitate fairly priced sale of patron-investor interests to the musician over time.
Are my investments tax-deductible? Can I donate them?
Investments themselves are not tax deductible. However, consistent with our mission, we are happy to facilitate requests to transfer investments for charitable purposes. Many charities are happy to receive “in kind” donations of shares and assets, which might then be eligible for beneficial tax treatment. Please contact us if you are interested in this option. And, as always, consult your tax adviser regarding your personal situation.
Does Strumenti.com get paid?
The specific terms may vary from offering to offering. Please read the disclosures on the specific offering. Strumenti will collect amounts intended to cover, among other items, the expenses associated with administering the instruments, facilitating investor relationships, and promoting the instruments and our artist community. Strumenti will also take a share of any proceeds upon disposition of the instrument. We intend to donate a portion of Strumenti’s profits to charitable causes relating to social justice and racial equity. Strumenti.com will be working to achieve a certification as a “benefit company,” which means we are legally required to consider the impact of our decisions on all of our stakeholders including not just our patron-investors, but also our recipient musicians, and the broader community. Read more About Us.