Artory, a blockchain-based art registry launched in 2016 has raised $7.3 million in a Series A funding. It is worthy to note that one of the major investors in the startup is 2020 Ventures, a firm which is reputably known to have backed the likes of Spotify, Postmates, and other fast-growing tech companies, reports a media outlet on April 22.
Artory is Focused on Bringing Transparency and Data Integrity
Per the report, Artory, a platform that is aimed at bringing transparency and integrity to the art data that is stored on the blockchain has raised $7.3 million in a series A funding. A number of major companies were its investors and notable among them is 2020 Ventures.
The latter has reportedly invested in Spotify, an audio streaming service, Postmates, an American logistics company, and The RealReal, a luxury goods resale platform. Other investments were made by Hasso Plattner Capital, an investment firm, co-founder of SAP, a German-based software company, and several other private equity firms.
Investments May Look Small But it is Remarkable
The $7.3 million may look like a drop in the bucket, but it is remarkable that the blockchain is gaining attention from the $67.4bn global art market and investors alike. According to David Williams, the general partner of 2020 Ventures, its firm likes platforms that address the difficult barriers in the industry. These are platforms that “open large markets to a broader range of participants and transactions.”
Artory, on the other hand, uses the blockchain to keep track of artwork. It also keeps a record of an art sale thereby bring about the immutability of such information. The difficulty in changing the stored data speaks data integrity given that the blockchain’s stored content at any time will be the same.
Funds to be Used in Further Screening of the Registry’s Data
While making comments, Nanne Dekking, the founder of Artory stated that the funds raised will be used to further vet the registry’s data. It will also be used to improve the functionality of its blockchain-based platform.
Dekking also said:
We’re not just making a list of reported sale prices like Artnet’s database, we are building something that has to be vetted, accurate and easily searchable to show the depth of information behind every artwork…Our product is ultimately not the platform itself—it’s data integrity, and that takes time and money.
The use of blockchain in the art world is gaining wider adoption. In November, BTCNN informed that Christie auction had used Artory’s platform for its art sale. It was able to raise $317,801,250 thereby making it one of the largest art sales ever conducted with the use of the blockchain.