How online is revolutionising the art market and how it affects art investment. Understanding the changing landscape as a new class of art collectors enters the art market with new online and mobile tools while expecting effectiveness and transparency.

1. Alternative Investment Seminar on Art, 6th
September, 2013
Association of Chinese Financial Professionals in UK (ACfPU)
英国 人金融 会华 协
HOW MOBILE AND ONLINE
ARE CHANGING THE ART
MARKET

2. I am CEO at Artfinder
My name is Jonas Almgren

3. 8 years in New York
Co-Founder VIP Art Fair
and oneartworld.com
15 years in Silicon Valley
5 scale-ups: 2 IPOs, 3 acquisitions
Swedish, MSc Computer Science, KTH

4. HOW MOBILE AND ONLINE
ARE CHANGING THE ART
MARKET

5. WHAT MARKET ?

6. Gagosian
Hauser & Wirth
Marian Goodman Gallery
L&M Arts
Paula Cooper

7. High end market
•$30 billion global market
•Tiny group of buyers buying from a tiny
group of resellers
•Supply is limited (sometimes artificially)
•It is highly opaque and co-dependent
•It can only be marginally improved by
internet
ARTSY

8. Reproductions market
• $70 billion market
• It is a global market
• It is a mass market
• It has already been disrupted

9. Middle market

10. What is the
Middle market?
•Affordable authentic art the middle and
middle-upper class can buy
•$60 billion market
•It is operated by local galleries selling to
local buyers
•It has not been disrupted yet

11. How to approach the
Middle market?
Sell limited edition prints by high end
artists?

12. How to approach the
Middle market?
Can we combine authenticity,
affordability, and investor
value with the rich global
choices (including unique
paintings and sculptures) afforded by
the high end?

13. Disrupting a market

14. Pre industrial market
Buyers only buy from the local sellers

15. Industrial market
Mass production and distribution

16. Modern market
Efficient marketplace provided
by players like Ebay or Etsy

17. How to approach the
Middle market?
The Art Marketplace

18. Trusted Two Sided Marketplace
100 million annual affordable art buyers
1 million independent artists
(living from making art)
Efficient global market
Wide selection
Online
High liquidity
Little remnant inventory
A Home for Art Online
Trusted, Quality, Free Returns

19. Artfinder Technology
Online Website
Curated Marketplace, Beautiful & Responsive Design
iPhone App
In-app Purchases, Notifications

20. Large Engaged Community
130,000 members
122,000 FB fans
189,000 Pinterest
800 sellers
10,000 artworks
• More FB fans than Art.sy, Artspace,
Paddle8, and 20x200 combined
• Our FB fans on average engage
150 times with each post
• More than 2 million emails sent
every month with high open rates.
Notifications sent to mobile app.

21. The market
becomes Personal
•Buyers and artists interact
•Artists become marketing
powerhouses on their own thanks
to social media
•It democratizes the market for
artists
•You can be a star by popular
demand rather than gatekeeper
selection

22. MOBILE is more than
MICROTRANSACTIONS
•A big chunk of our sales happen on
mobile apps and we were the first
surprised!
•A mobile sale always happens at
the right moment, in the right place
•Inhibitions disappear

23. NOTIFICATIONS are HUGE
•Buyers following their favorite
artists
•Buyers following other buyers
•Buyers following taste makers
•Buyers discovering local galleries
via apps
•Artists receiving real time feedback
from their fan base

24. How STAR ARTISTS will be born
•The power of gatekeepers will
diminish
•The relevance of social network
popularity will increase
•What will happen if an artist rises to
the high end market? Will he keep
operating in this global market with
other stock?

25. How does this affect ART
INVESTORS?
•Prices are driven by demand
•It is a liquid market
•Prices can go up or down!
ARTIST & ARTWORK
VALUE INCREASE
GATEKEEPERS DEMAND
NEW MODELOLD MODEL

26. JONAS@ARTFINDER.COM