A major Australian arts fintech has been forced to cease operations and is on the brink of collapse.
ArtMoney, a buy now, pay later platform for the art world used in over 50 countries, said it had taken the “difficult decision” to “suspend its business activities”.
The company’s Sydney-born founder and CEO, Paul Becker, said the company needed another $5 million (A$7.6 million) to stay afloat and turn a profit by 2025.
“The company I founded, Art Money, has run out of working capital and has disappointed many of the people who believed in the company and in me,” he wrote in an email to clients. news.
The platform was designed to allow customers to purchase artworks ranging from $500 to $1 million through interest-free payment plans.
Founded more than 10 years ago, the business partners with more than 2,000 art galleries around the world, making 20,000 works available for purchase to customers.
But currently, existing customers cannot purchase any more and new customers cannot apply for financing.
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Becker said founders have three key responsibilities:Create a vision, communicate it, build a great team, and make sure the money doesn’t run out.” “After 10 years and clients in four countries, I just couldn’t get a third job done,” he wrote.
Becker blamed the company’s problems on a “chain of linked events.”
Specifically, profitability is being affected by the shrinking art market due to the global economic downturn, a lack of growth capital, and rising interest rates.
“This model is now proven and common in every industry outside of the arts, but without sufficient equity capital a business cannot take the next step and realize its potential,” Becker wrote.
“Ideally, we need a combination of strategic partners from the industry, a ‘coalition of the willing’, united in growing the art market so that all stakeholders benefit.”
The entrepreneur isn’t sure what’s next, but he urged people to stay positive and reach out to potential investors.
