Innovative companies at the intersection of art and technology — who are they, and how necessary art-рынку and investor

• @now;
  Source: techcrunch.com

the Word "startup" can be compared with the profession of the curator. At the time of appearing in the daily life of both terms have long existed around us, but most people still needed to explain the essence and value of their work. The basic myths associated with the word startup can be divided into two groups:

1. Startup — is any young company at the stage from idea to open;
2. Startup — a synonym for any business with a high level of risk at the start.

let's Move from myth to reality. Startup — from the English. start-up, start — is a company whose goal is profit from the sale innovative ideas. This is its main difference from starting a business from scratch: a startup gives rise to a fundamentally new product or service which had not previously existed. For example, when you open your own coffee shop, buying a license for known network — is a deductible when creating their own brand — you are an entrepreneur with a unique selling proposition. But if you figure out how to build coffee-машину in the Elevator for employees of the office center, which will be up for work — this will be a startup.

a High level of risk really is a companion of all start-UPS. However, if in case of recurrence of an existing business-модели the risk of the entrepreneur associated with competition when entering the market, the main enemy of startups is creativity: it is often proposed innovative product simply do not need the market or existing "mundane" counterparts new business decide the question familiar to the mass consumer by. Relatively short life cycle of a startup is also explained from the perspective of the market: some die quickly, finding funding, other quickly redeem strategists — a large Corporation, making innovative ideas a part of your business. The third and the smallest category of startups grows into an independent company.

the Term "startup" has gained ground with the beginning of a new technological revolution 1990-х years. Then on the art market appeared first innovative company @Artnet mdas, which formally can be attributed to the ArtTech-стартапам (from the English. art and technology — on the intersection of art and technology). As we remember from the previous material, Artnet has offered collectors search the database of auctions, providing a tool for self-analysis of pricing and investments in art objects. From then on, modern technology has become the main material for innovation in the field of art-рынка: from 2000 to 2020 were more than 200 young companies who have developed their idea to the stage of the business, announced in June 2019 at Christie's Art Tech Summit in new-Йорке (source: christies.com).

in Parallel with the development ArtTech, with startups in other areas — financial, industrial, scientific — have been major changes: major foundations began to use startups as an investment, like securities. Startups were acquired in batches, then was natural selection, and as a result the most successful resold the company has brought in the investor's profit. Those were few, and they were called unicorns — charactersa fabulous breakthrough. The names of these startups are known to everyone today: Tinder, Uber, Airbnb, etc. On the background of the big names for a long time it seemed that the art market remains outside the purview of the investor in ArtTech.

the First study about the investment in the market ArtTech-стартапов was conducted by Fuelarts and became part of the the report Deloitte Art & Finance in 2019. Below we provide some data with comments:

• 2000-2019 ArtTech-стартапы received a $587 million investment;
• 2013-2019 investment in ArtTech increased relative to the period 2000-2012 72 %;
• 2017 appeared more than 30 ArtTech-стартапов;
• the Period 2020-2022 will be characterized by increasing dynamics of the emergence of new ArtTech-стартапов.

In the study, the startups were divided into four categories. Investments between them as follows:

• Transaction (Internet-аукционы, online-галереи) — $439 million;
• Information (databases, indexes) — $107 million;
• Studies (online-образование, machine learning) — $26 million;
• the Management of collections (logistics, storage, insurance) — $15 million

ArtTech-стартапы that appeared after 2017 (at the initial stage of funding) tend to occupy niches of the transaction (the basic idea of the 64 % of all companies), the remaining three areas have an equal share of 12 %. In other words, the majority of founders of companies attracted to the market, while the use of technology for logistics or education seems to them less important. According to Fuelarts, this dynamic has its negative side. Researchers indicate that the transaction market — he is the annual turnover of the art market — is about $68 million in recent years. From the perspective of the professional investor market of $68 billion is too small in volume, while the volume of art in private hands is estimated at $3 billion — and is potentially available market for logistics, storage, examination, and many other operations. In short, startups are the future generation should keep this in mind before communication with investors.

it's time to tell you who were previous investors in the ArtTech. Fuelarts allocates four groups of investors who funded startups at the intersection of art and technology in the last 20 years:

• Institutional investors — 38 %;
• Collectors and art-дилеры — 33 %;
• a Technology company — 24 %;
• Crowdinvesting campaign (ICO) — 5 %.

in Other words, the greatest confidence in the young companies in the fields of art found professional investors and collectors. Motivation often was similar to the social component of investments in art: by funding art-стартапов collectors want to keep their finger on the pulse of the art market, either log in such. The difference between buying a Basquiat for $100 million and invest $1 million in young technology project opened a quite similar perspective: from the VIP-приглашений at fairs and private parties before the formation of the new pool business-знакомств. It is likely that many of them remembered the story that happened in 2008: no one famous unnamed startup three art-дилеров — Gagosian, Tsvirner and Akvavella — were given $500 thousand each. The name of the startup was born a year later — Artsy. Sincethen leading dealers learn about online-продажах and market trends in the arts, the rights of minority owners.

About the problems when you start ArtTech-стартапов, possible solutions, stats, survival, success stories and mistakes in the actions of young companies at the intersection of art and technology we will discuss in the rest of the material.

Denis Belkevich, AI