Art-Tech Pioneers Favor Steady Growth Over Venture Capital Frenzy
As the art world adapts to the digital age, a new generation of art-tech companies is emerging. These startups, often founded by insiders, are taking a different approach to business than their tech-focused counterparts. Instead of seeking rapid expansion fueled by venture capital, they’re prioritizing sustainable growth and a deep understanding of the art market.
One of the most prominent examples is Fair Warning, an auction app launched by former Christie’s co-chairman Loic Gouzer in 2020. Gouzer’s venture, which secured $5 million in Series A funding last year, has offered works by artists like Lucas Arruda and Sterling Ruby. Fair Warning, along with several other startups, was born from the disruptions caused by the pandemic. Rather than seeking investment from venture capital (VC) firms, they have leveraged their connections within the art world for funding. This cautious approach allows them to be selective about the art they offer and to build a business model based on long-term value.
Gouzer, speaking to ARTnews, explained his decision to avoid VC funding, stating, “We decided not to take any interest from VCs—it’s too early in the process… I’m focused on attracting users and investors who have art backgrounds. It’s a complicated market now.” Gouzer noted that his company is valued at $20 million.
The Family Business Model
Oliver Miro, son of London dealer Victoria Miro, is another founder taking a similar path. Miro’s company, Vortic Art, is a virtual reality startup created to display artworks to collectors without expensive transportation costs, especially during the lockdowns. He noticed that the family gallery suffered from a lack of online presence. After a decade working for his mother’s gallery, Miro saw the need for a digital entry point, an issue that became quite evident when the physical location closed during the pandemic.
The Victoria Miro gallery invested heavily in Vortic. This backing allowed Vortic to grow its team from 5 to 14 employees, and the gallery has used the platform for its online presence. While Vortic operates independently, the financial support has given them a considerable advantage. “I’m coming very much from a traditional background. We’re not trying to build the company up to sell it,” Oliver said about his approach. By avoiding a focus on traditional VC metrics, Vortic is free to prioritize the needs of galleries and artists.
Lessons from Other Ventures
Not all art-tech ventures have taken this cautious approach. The e-commerce company Platform, launched by David Zwirner, had initial success but later shifted its focus to editions and luxury collectibles. Pace Gallery’s Superblue, and its goal of presenting large-scale immersive installations, took investments from non-art-focused sources and had a more difficult time achieving its goals. The company reported significant losses, and the founder stepped away.
Dave Benton, founder of Metajive, weighed in that “there’s still uncertainty about how galleries, collectors and museums aim to blend credibility with mass appeal as these companies age.”
As these art-tech companies mature, a central question surfaces: Can businesses that prioritize art-world values thrive in an environment often defined by rapid growth and external investments? The strategies of Fair Warning and Vortic Art suggest there may be a different, more sustainable path to success.
