At the end of the material AI — on measures of success, which draws attention to the investor

• @now;
  Source: pymnts.com

the first and the second parts of the material we talked about the basic numbers and the errors when you start young companies in the field of ArtTech — symbiosis of art and technology. The relevance of technology in the lives of art-индустрии has skyrocketed just in the last few days: the auction houses suffered more than 80@now;% of the trades in online galleries and fairs to massively create virtual rooms for the display and sale of art, museums are actively using the technologies of augmented and virtual reality when creating exhibitions. The other day, one of the largest galleries in the world, Hauser & Wirth, announced the startup ArtLab, which, unbeknownst to the rest of the market, invested in 2019 in the long term development of the young company from Los-Анджелеса will allow you to create a virtual residence for artists, the social network for collectors, as well as new management tools are a collection of both physical and digital art.

the situation with the pandemic and the looming crisis in the economy make ArtTech-стартапы of the outcasts of the art market in the most attractive sector investments — for existing art-компаний and professional investors. With the first group quite simply: if we are talking about the strategist (major player in the market, as mentioned Hauser & Wirth), the company is of a similar level or buys the project together with the team, or will be included in startup money at the level of the majority co-owner, with exclusive use of the technology. Smaller companies (galleries and auction houses of the second order or lower) can become subscribers of the new service and rent virtual offices or equipment to create exhibitions on a monthly or annual basis. In both cases we are talking about a startup with a ready technological solution. But what do the founders, who did not create a product until the quarantine, but they have a revolutionary idea that can help the art market? Their way is harder: going to the investor that in a short time to create such a product, and then to return to the market and try to sell the technology strategist (provided that they have avoided major error and the chosen niche by that time will not be occupied). Accordingly, it is necessary to understand, from the perspective of what data evaluates a startup investor.

as reported in the report Deloitte Art & 2019 Finance (pp. 177 to 179), 100 startups from all directions, passed the way from idea to company formation, survive three. To help increase the survival rate of the accelerators —, the company is intensively developing startups through educational programs with the involvement of mentors — professionals in various sectors of the market (from design to financial models) which give an expert assessment and help a startup improve. Many accelerators are venture capital funds and startup funding at the initial stage or upon completion of the program build a round table of investors for the presentation of its graduates. As a rule, for participation in the program, the accelerator receives a share in the company (average 7-10@now;%). The word "accelerator" implies that the way in which startups themselves overcomeone and a half-два year, with the proposed program they pass for 2-3 months — saving time, money, bypassing competitors and faster understanding of their own weaknesses and opportunities for enhancement. More importantly: according to statistics, the past programmes of the accelerators start-UPS survive up to eight times more often: 25 out of 100 are working. With these statistics a sign and investor.

In relation to accelerators that can help ArtTech-стартапам to make the product more attractive and to bring to investor caution. In the world at the beginning of 2020 were more than 3 thousand programs of acceleration, the niche of which there were only three: LACMA Art Technology Lab, created by the Museum of contemporary art in Los-Анджелесе, and the two new-йоркских company: NEW INC from the New Museum and Fuelarts. The Museum accelerators are more focused on curatorial, social and humanitarian projects, and eligible fall 2019 business-ориентированный Fuelarts suffered a physical set for an indefinite period and may starts online-обучения. As for the world's largest "generic" accelerators, such as Y-combinator or TechStars (has released Uber, AirBnb, Tinder and many other projects), it usually falls to them art-проектам it is proposed to change the vector to a more traditional understanding of the accelerator and its pedagogical structure: how to make a Dating app, they understand, and how to create a new Art Basel — yet.

the report by market technologies in art, made Fuelarts referred to the Deloitte report shows that ArtTech-стартапы, the past acceleration, startups outperform other sectors (financial, industrial, medical) on a number of indicators:

• initial funding: 100 ArtTech-стартапов, created the prototype of their product 50 received money from investors in more than $100 million (figures startups in other markets — 25 of 100);

• subsequent funding: 50 ArtTech-стартапов until the next investment round of more than $500 thousand, reached 23 companies (in other markets — 15 of 25);

• output of start-UPS: from 23 ArtTech-стартапов successfully sold his business strategy 8 of companies (in other markets@now;— 2 of 15).

Even with a modest sample size (number of young companies in the field of art and technology in tens of thousands of times inferior to the total number of startups) we see that ArtTech-стартапы more sustainable from a position of attractiveness. This is especially true exit: the number of final sales art-компаний four times higher than the market in General (eight to two). There are several reasons, however, not all are at the financial level:

• in-первых, investing in technology and art akin to the acquisition of art itself, it has a social implication. For the investor this kind of "entry ticket" for the art-рынок to address issues related to the core business, in a new circle of people. While investing money in ArtTech-стартапы much cheaper than buying complete collections, and the results are the same: VIP-карточки international fairs, invitations to private parties, collectors, participation in discussion forums and other elements of the changed status, and with them — the opportunity to attract a much largermoney for other projects;

• in-вторых, for collectors and dealers in connection with ArtTech-стартапом — is a finger on the pulse of the art market, the possibility of one of the first to get news and respond to trends. Remember that 10 years ago in the Artsy first invested it Larry Gagosian and David Tsvirner, — is it because today they are almost all better prepared for crisis online-кабинетами?

• in-третьих, and this may sound sudden, strategists out does not always preserve the art-составляющую ArtTech-стартапов: of the eight companies successfully sold to a vector of four was radically changed strategy: startups are financial service, sports and even the oil industry. Why is this happening? The fact that the strategist involves not so much the technology and the art market, as the creative team@now;— in other words, the ability to think outside the box when problem solving. Therefore, conventional online-аукцион of art, purchased a strategist starts to trade a little less than conventional oil, and indices of art objects in the result of service sports betting (this is real-life examples. — AI.). However, the founders and early investors ArtTech-стартапа eventually get a financial return and can start the life cycle of a new company.

these figures can serve as a sufficient argument to begin substantive conversation ArtTech-стартапа with the investor. To make it even more concrete, here are a few questions that founders need to ask yourself before searching for financing:

Stage 1: "I Have an idea". Initially, the most important is the definition of the category of the person or company to whom you will ask for money. Ask yourself: who is interested in your idea? If only you — you are a happy person and can become a writer. If the idea is interesting and other people, the next question is: the idea involves sale? If Yes, you@now;— to investor. If sales (monetization) can be expected, there are two options: if the idea involves PR — need the sponsor, if information private — you are looking for patron. Practice shows that the wrong message treatment can radically erase all further work. In other words, do not go to the investor with the charitable project, and to Maecenas — with the financial model.

Stage 2: "I Have an idea involving the sale,". Ask yourself: does your idea solve an existing market need? In other words, whether conditional collector to sleep without your solution? If your answer is: the idea does not solve a need, she creates, — congratulations, you have Google or Tesla. To form need of nothing and establish trends can only be a strategist, taking into account the financial strength and the number of its adherents. If your solution solves a need, the next question: whether it is cheaper than existing counterparts? If Yes, go to next step. If not, ask yourself, what is its added value. If the value of solutions in the conceptual approach, the best way — to sell your idea to, say, a Committee of the Venice Biennale. The investor will also be interested in other types for values@now;— for example, a new technology, yourteam and speed of the finished product. If you've got it, you move on.

Stage 3: "I Have an idea of value, assuming the sale". Look at the competition and ask ourselves do they? If not, the investor asks the question: then who needs your product? If competitors do ideas exist, it is necessary to understand direct they (are doing similar product) or indirect (partly provide such services, but focused on your target audience)? If competitors indirect — proceed to the next stage. In the case of direct competitors, the question will be: what are you doing better than them? If everything is the same, and they have long entered the market — sorry, you are late. But if you have something-то what your decision will be better (faster, cheaper, more ergonomic) — investor would be willing to continue the conversation.

Step 4: "I Have a competitive idea of value, assuming the sale". As you can see, your idea to the fourth stage had grown powerful arguments. But the question the investor will ask the following, may not be in your favor: you tested the idea on the market? If not, maybe it's not too late, go! If the idea was tested (orally, by written survey or opportunity to see and work with the prototype), you will be asked if you received the first followers (potential customers, says the founders that the idea is great and they will buy this service after the official release). If such is not found, in the best case, you will be asked to reconsider value and to come back in the worst — to end the conversation. However, if you received the first followers "on paper", the investor will offer to take them in advance to check the real interest of the market. If you pay in advance for a non-existent product (even at a large discount) not found wanting, be prepared to reconsider the audience or value. And if you give cash, the investor would be willing to listen to you anymore.

This check-лист you can continue, but these four items are mandatory for a startup as a first check of the viability of his idea.

Market projections ArtTech-стартапов at the moment can be reduced to the following:

1. Investors in assets with a high degree of risk (which is traditionally referred and startups) today pay more attention to technological projects, especially related to remote access and control. You need to understand that ArtTech-стартапы got competitors who decided to use technology from other areas — primarily in the fields of health and smart cities (management of social processes at the state level). As far as the investor is interested to invest in the company, connected with art, largely depends on the described above social impact, working on capitalization, — in particular, the attention of the unions of art and technology from the media.

2. Those who managed to get financing until 2020 and to create a minimum viable product (MVP), are in the best position they can be interested in their product market players: large@now;— for the merger (exclusive of the use of technology), smaller — to work on the subscription (non-exclusive license).

3.ArtTech-стартапы, which to date are in the process of finding an investor, behind two steps: first step — to find him and convince to invest in the project, the second — to create a product, given the increased demand (and costs) for technical professionals today. However, the company in the development stage have an advantage: they can make decisions and adjust the focus of the project looking at the needs of the art market that is now rapidly changing.

4. As we remember, ArtTech-стартапы are divided into four categories: transaction (Internet-аукционы, online-галереи), information (databases, indexes), research (online-образование, machine learning) and management of collections (logistics, storage, insurance). 2/3 of young companies want to occupy a niche sales art: it looks appealing and accessible. However, with the advent of the pandemic and the subsequent crisis, we and predicted the development of other, less occupied with technology niches — in particular, projects in the field of market research, open new regional markets and artists, logistics, insurance and virtual reality. In short, everything that aims to reduce the existing costs of buyers and sellers of art, conservation international nature art-рынка and maintaining interest.

Denis Belkevich, AI