Investment Memorandum
Establishing Artalytics as the Single Source of Truth
Artalytics is revolutionizing the digital art market by establishing itself as the central hub and single source of truth for digital artworks. Our platform empowers artists, instills confidence in collectors, and offers unprecedented insights into the creative process—transforming hidden aspects of art (time, skill, complexity) into measurable, verifiable data.
Introduction
The $6B Problem: A Visual Snapshot
By highlighting these stark ratios—1 vs. 1,383 transactions, and $1 vs. $158 in spending—it’s clear the vast majority of digital art remains unprotected. Without IP verification, both artists and collectors are at risk. Artalytics aims to reverse this trend.
We address critical challenges: rampant theft, poor authenticity, a fragmented market, and difficulty in establishing artwork value. Our proprietary technology not only authenticates and protects digital artworks but also elevates their value through advanced statistical analysis of each artwork’s creation process, making them far more attractive to serious collectors seeking secure investments.
The Market Opportunity
The overall digital art and collectibles market is projected to triple in size by 2030 (17% CAGR). Within this fast-growing ecosystem, Digital Fine Arts—one of the largest subsegments at $1 billion—is expanding even faster (CMI Report 2023).
To better understand the relative market share of digital art segments, we analyzed the top 200 artists, representing 440 collections of digital artwork. We then applied our categorization methodology to each collection developed using industry accepted segments and recent trends in digital art (Gold 2023), most notably including digital fine artworks (also referred to as ‘digital paintings’).
Fig 1 shows the ten categories of NFTs that cleanly segments the digital art and collectibles market1. For a deeper dive into our methodology as well as the categories we’ve identified, their definitions, and our rational for each, see appendix Chapter Appendix F — Digital Art Categories.
Fine Art NFTs (such as digital paintings) represent 1% of the total market cap of the top 100 NFT marketplaces, yet sell at prices 14 times higher than the global average market price. Meanwhile, collectors in this segment spend 196% more per person than the market average, demonstrating extremely high engagement and purchasing power. Notably, 78% of current digital art collectors started collecting in just the last 3 years, underscoring how early we remain in adoption.
To visualize this outperformance, see Fig. 2, where Fine Art NFTs, despite their small share of total volume, command a 19× price multiple and 2.2× the average collector spend.
By unifying the fragmented digital art ecosystem and bridging the gap between creativity and technology, Artalytics is positioned to capture a significant share of this rapidly expanding market—providing investors a compelling opportunity to shape the future of digital art.
Classification Differences. While some industry sources identify Digital Fine Arts as the largest subsegment, certain subsegments in our data (consisting of collections of art for the top 200 artists only) are heavily skewed by major outliers collections (e.g., CryptoPunks, a collection that falls in the category of Collectibles, alone represents over $1B, or ~65% of that category’s estimated total size). We also included certain borderline “Generative Art” collections that other analyses might classify differently. Despite these factors, we accept the commonly cited 25% market share figure for Digital Fine Arts as a valid overall estimate.↩︎