“People are willing to spend their money investing in others, taking these big risks“- Micheal Schwimmer, CEO of Big League and former pitcher for Philadelphia Phillies.
Throughout the course of history up till the present, skilled professionals like artists, craftsmen, musicians, theatre performers, and several others have often been kept off the stigmatic societal limelight and have usually struggled to voice for their craft. Historically, the nobles and the aristocrats provided patronage to such artists, thus using art as a medium to endorse their political agenda making one’s craft a derivative of sorts, robbing the art of its true meaning and worth.
Soon with the emergence of major advocates like Beethoven and Mozart, the inherent value of art was brought to the notice of the greater society. Although the patronage system still prevails in society, it has taken a very different turn in the twenty-first century. Capitalism is evolving over the due course of time, and so are the investment horizons of the richest.
What if we tell you that the investors are not only investing in the high-end art pieces anymore but artists themselves to help them earn a handsome figure out of skills.
This goes for any form of artists from musicians to painters, to handicraft workers. Having said that, many artists who ask the question- how to become a successful artist?- may soon get the answer that they need.
Let’s know in detail.
“How to become a successful artist?” Angel Investors are the answer
Encouraging artists and craftsmen to enhance their craft, the concept of seed funding professional journey of artists is the new emerging trend. Prior to the present, the involvement of angel investors in creative domains was highly uncommon but has now become a reality.
What does the artist get? The resources to become a renowned, high-end name in the industry. What does an investor get? The decided chunk of income in the future when the artist emerges triumphant.
The student community is the most influenced by this propagating culture as the surrounding environment is protective and supportive. Entrepreneurship is another very flourishing term for students of the present and many start their own businesses in the hope of attracting an angel investor/ seed capital fund one day.
With investors increasingly shifting their focus from investing in startups to investing in professionals, society is quite possibly witnessing an evolution. So much so that experts believe that soon enough, angel investors will be channeling resources into other skilled professions for a share of their earnings in the years to follow.
The reason behind the nascent trend
One of the key reasons behind this trend is backed by the lesser-known fact that the global art industry has significantly outperformed the majority of the global equity indices over the past few decades, recording sales worth $50.1 billion in 2020 itself.
Given this trend, it hasn’t taken long for experts to pounce on the opportunity of investing in artists, almost as if they were fully functioning startups. Just like an investor would scrutinize a project before investing, understanding the psyche and the craft of the artist is what proves to be the difference-maker while scouting for a future star.
Investing in a professional can be quite a risky bet and being a nascent concept has many restricted entry points which are only open to the extremely rich. Funding an artist at an early age might pose the threat of loss of capital but given the size of the opportunity, a talented craftsman can accrue huge returns to the investors in the future. Quite similarly, renowned artists might be reluctant to let an investor take a stake in their craft but do pose as the less risky bet for investors who can be sure to accrue a certain return on their investment.
But at the same time, the right bets can earn you fat checks in future given that so many exceptionally talented artists are still looking answer for the question- how to become a successful artist?
Laura Callanan is yet another advocate of investing in artists and has made several contributions on her part to pivot the field to more respectable stature. Having invested in a recording label named Smithsonian Folkways Records under the Rockefeller Foundation, Callanan believes that the arts community has been deprived of involvement in impact seed investing and funding. Further, she believes that the concept needs to be brought forth the society for practitioners to get the same civic engagement, connections, and stature as other professions.
The norms of the societal hierarchy of professions are hence evolving and angel investors are playing a huge role in propagating the concept. The rare mix of talent and resources has opened up avenues for artists from all classes and is increasingly giving professionals and their professions the platform they deserve. Steering the culture of investing in a new direction, these visionaries have changed the face of the game without a shadow of a doubt.
You can read in detail about the industry at In4art.