As Art-Trope recently opened its services to worldwide Artists after years of research and Proof of Concept by its President and Founder, here’s a quick scan of the new challenges startups have to overcome:
The end of an era: startups VS big players
Across the rest of the world cities have been trying to become the new startup hub. There are now countless accelerators, incubators, co-working spaces such as NeueHouse, in big cities. It is a race to support innovative young companies to be tomorrow’s Silicon Valley. Everybody has in mind the American Y Combinator model that favored the emergence of today’s major players such as Facebook. Silicon Sentier in Paris, Silicon Allee in Berlin, everybody’s on the same page. Everybody but San Francisco’s Silicon Valley itself. For journalist Jon Evans “the golden age of startups is already over”. Effectively, the web boom of 1997-2006 saw the creation of Amazon, Facebook, Google, Airbnb, etc., because the Internet was the revolution nobody expected. The following smartphone boom of 2007-2016 came with Uber, WhatsApp, Instagram, Twitter, etc., because smartphone apps were another revolution on the rise. Nonetheless, big businesses are the ones that colonize both territories now. Today’s new technologies are difficult to handle and very costly. It favors organizations that have extensive amounts of scale and capital. The big benefit from this new era, not the small.
Growing startups: the Venture Capital challenges
For the past few years, startups have hit the headlines with world record Venture Capital operations. This new form of financing is provided by firms or funds to emerging companies which have demonstrated high growth. Nonetheless, the more money raised by a startup, the more pressure it goes under. Most of the time, the indicator that serves as a base for defining performance is growth rate. Indeed, for an early-stage startup, the big assumption made by both investors and the startup is usually that the capital is the major obstacle to its development. Nevertheless, in reality this is actually rarely the case. In fact, as huge amounts of money are injected in the startup, growth objectives multiply dramatically adding an extreme pressure to its productivity. It eventually makes the startup lose focus on the costs that also skyrocket to live up to the new productivity goals. It is not rare to hear founders and investors argue that issues can be fixed as the company scales thanks to capital. But in the end the pressure favors mistakes. By adding overtime, mistakes make startups dependent on ever-injected money to finance a broken model. Art-Trope’s model is the result of a solid market analysis and years of experience. Everything is in place not to fly too close to the sun.
French startups: a different model?
Joana Vicente, executive director of Independent Filmmaker Project which oversees one of the Los Angeles based French American Lab’s structures called Creative Lab, recently stated in Les Echos “French startups have a different approach”. Different how? Over the past few years, French entrepreneurs have been criticized for their lack of international focus and narrow ambitions. However, digital payment new player Stripe’s report shows that 98 percent of French startups launched since 2014 have international customers. Moreover, the highly skilled labor and hordes of engineers favor efficient Research and Development initiatives most likely to foster development on the long-term. Art-Trope’s model is based on long-term perspectives with a quick and yet sound and realistic development forecast. It is the unique accelerator of the global Fine Arts market and the only business model that can support Artists’ careers on the long-term. Our ambition is to increase the chance to succeed for the main players of the Fine Arts market.
Read the words of Art-Trope’s shareholder here.