The thesis of this site, and the focus of most of my professional work since the earliest days of the Internet, has been focused around a fundamental idea -- that the arts are no different than any other industry -- and should rapidly adopt new technologies to help the industry grow and develop.
In other business sectors, dedicated pools of capital—venture funds, angel networks, and investment groups—drive innovation by supporting promising startups. These sectors have code names such as “fintech, edtech, medtech” and so on. And the capital invested in startups not only aims for financial returns but also serves as an crucial engine of industry-wide progress. What drives these industries toward the future are typically small startups where individual entrepreneurs have a burning passion to both make money and improve an industry.
However, the arts --- there’s a frustrating absence: there is no “arts-tech” Rather, though there is philanthropic support for the creation of art (and individual arts organizations) there is no well organized source of capital for industry-wide technology innovation and risk-taking. As a result, the arts are lagging behind. Managers of cultural organizations use outdated bespoke tools, or are forced to adapt systems developed for other industries.
But, no different than other industries, the arts field has unique business needs and requirements, and to solve these challenges there is relatively little innovation. What’s holding the industry back isn’t a lack of ideas. Rather it’s a capital dedicated to this intersection of technology and the arts.
How Capital Drives Innovation in Other Industries
By way of comparison, let's look at the level of venture capital support driving innovation in other industries over the past few years:
- Fintech: Financial technology has become a multi-billion-dollar industry, with $19.4 billion invested in 2023 alone. VC funding in fintech has helped bring about significant advancements in mobile banking, payment solutions, and customer engagement. Banks used to be buildings where you did “banking” and now it’s all done on the phone. Think of how quickly this has transformed --- over maybe 2 decades?
- Edtech: Education technology In the first half of 2023, edtech saw $1.8 billion in investments, supporting tools that enhance access, quality, and engagement in education.
- Insurtech: Insurance technology continues to see growth, with $1.7 billion invested in Q3 2023. This capital has supported advances in claims processing, risk assessment, and personalized insurance solutions.
- Biotech and Medtech: Biotech and medtech remain essential industries for investment. In Q2 2024 alone, medtech saw $3.3 billion in venture capital, funding developments in medical devices, diagnostics, and patient care that have a direct impact on lives.
The Unique Funding Landscape of the Arts
In the arts, an industry that the NEA says is about $1T, the primary sources of funding are philanthropic donations and grants, typically directed toward supporting artists, productions, and cultural institutions.
This funding stream is more or less focused on maintaining the status quo - producing events - exhibitions, as creative as they may be. Philanthropy in the arts sustains what already exist. It is not structured to spur innovation in the same way that happens in other industries above.
What Arts-Tech Investment Could Achieve
Let’s imagine what a dedicated pool of capital for arts-tech could enable in the arts:
- Enhanced Audience Engagement: Technology such as the emergent virtual reality, augmented reality, and artificial intelligence could transform how audiences experience art. Interactive and immersive experiences could attract new demographics and allow audiences to engage with art in ways previously unimaginable. This
- Operational Efficiency: Just as fintech has streamlined banking as I described above, imagine new tools to make arts management more efficient. From CRM systems tailored for the arts to ticketing platforms designed to reach broader audiences, these innovations could make it easier for arts organizations to operate effectively in a digital-first world.
- Reaching Younger Audiences: Business-to-consumer (B2C) technologies offer a unique way to motivate and empower younger generations to engage with the arts. Apps, digital platforms, and social tools could make the arts accessible and appealing to younger audiences who are accustomed to digital-first interactions.
Why the Arts Can’t Afford to Be Left Behind
As every industry embraces technology, the arts cannot afford to be left behind. By investing in technology-driven solutions, we could empower the arts to evolve, adapt, and reach broader, more diverse audiences. I’ve long believed that the arts deserve the same kind of forward-looking investment that is transforming other fields. Supporting arts-tech is not only a financially viable investment; it’s an investment in the future of the arts itself.
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