Millennials comprise the largest consumer group today, bringing new perceptions, attitudes, behaviors, and outlooks into their purchasing decisions. Millennials and Gen Z are more reliant on technology and particularly social media for discovery of purchases. The art world is no different with a new generation of buyers reliant on digital channels; 79% of millennials reported buying artwork online more than once within the last 12 months. ArtSugar is an e-commerce destination for art and home decor that is catered to millennials and Gen Z collectors. Offering accessible price points, the platform also features popular artists from Instagram including Angie Crabtree and Betsy Enzensberger that have harnessed the power of social. Since the pandemic, the company has grown revenue 80% year-over-year. A portion of each sale goes to support charity.
AlleyWatch caught up with CEO and Founder Alix Greenberg to learn more about curating art for the next generation of art collectors, the company’s strategic plans, recent first institutional round of funding, and much, much more.
Who were your investors and how much did you raise?
ArtSugar, which is a female-founded e-commerce retailer pioneering art curation for the Instagram generation, raised a $500,000 seed round. The new investment, the first for previously bootstrapped ArtSugar, was from Curate Capital, a venture capital firm empowering female founders to accelerate their paths to success.
Tell us about the product or service that ArtSugar offers.
ArtSugar uniquely solves the challenges millennials and Gen Z face when shopping for art and home decor – mainly an overwhelming quantity to choose from and cost-prohibitive original works. ArtSugar successfully bridges the gap between mass-produced wall art & decor at big-box retailers and the high-end fine art market, boasting an exclusive selection of affordable art prints, sculptures & home goods by Instagram-famous artists along with in-house designs. ArtSugar is expertly curated by me, a fine artist, to fit a distinctively glamorous, on-trend, and uplifting aesthetic. By featuring artists resonating on Instagram, ArtSugar’s assortment is “pre-approved” and primed to interest its social media-minded audience. These goods are perfect for posting on social media, too; customers can switch up their decor to fit their moods and feeds, without the sticker shock. Plus, ArtSugar donates proceeds from every purchase to a selection of notable charities, with partners including God’s Love We Deliver, Gyrl Wonder, and The Trevor Project. Select artists on the platform include Michael Turchin, Angie Crabtree, and Betsy Enzensberger.
What inspired the start of ArtSugar?
With an M.A. from Christie’s and a BFA from Cornell, I pivoted from a traditional art career working at Skarstedt Gallery and with Peter Tunney to turn my side business Portraits for Good into a full-time effort with ArtSugar, after my grandma passed away of pancreatic cancer. I was very close with her and realized that life was too short; I wanted to do what I loved while scaling my business, so ArtSugar was born. I first became involved with pancreatic research organization CodePurple Now to implement a socially responsible element into purchasing art. Now ArtSugar donates proceeds from each sale to an array of important charities.
How is ArtSugar different?
ArtSugar provides a novel and accessible marketplace for millennials and Gen Z to buy the eye-catching art they spot on social media – and beyond. It also offers a technology solution that helps these artists monetize their art efficiently, so that they can create and sell without the headache of managing backend logistics, and focus on their craft. Plus, ArtSugar boasts a socially responsible element by giving back to organizations that matter.
What market does ArtSugar target and how big is it?
The global home decor market was valued at $616.6 billion in 2019, and is estimated to reach $838.6 billion by 2027. Our products attract mainly Millennial and Gen Z on-the-pulse female consumers looking to purchase on-trend home decor, including wall art and accessories.
What’s your business model?
Our primarily drop-ship model keeps inventory costs low. By keeping our costs low, we are able to pay artists between 20 – 15% gross commission, thereby staying competitive with other art platforms.
How has COVID-19 impacted the business?
ArtSugar experienced impressive growth with an 80% increase in year-over-year revenue since March 2020, as a full 55% of Americans made a significant change to their home decor in 2020, and 71% plan to redecorate in 2021. Online art sales also doubled in value from 2019 to reach a record high of $12.4 billion. The pandemic drove people to focus more on the look of their homes, which could have led to this upswing. Also, ArtSugar sells many uplifting and colorful prints, which attracted consumers during the gloomy pandemic.
What was the funding process like?
It took a lot of patience. I was pitching VCs for 6 months or so before I met our current investor in October 2020. We were officially funded in July 2021. It was a process that required a lot of grit and optimism.
What are the biggest challenges that you faced while raising capital?
As a solo founder and a small company, it was difficult to both build the company and raise capital simultaneously. Each requires 100% of you and there aren’t enough hours in the day sometimes.
I found that a lot of VCs were only focused on the exit. Curate Capital was more so invested in me as a founder, believing in me and where I could take the company long term.
What factors about your business led your investors to write the check?
Carrie Colbert, founder & CEO of Curate Capital, said that she invested in ArtSugar because ArtSugar both honors and compensates artists today and equips art collectors of the future with its curated, eye-catching selection and accessible price point. She also mentioned that she looks to invest in businesses that are effectively leveraging social media to market and sell to the millennial consumer, and that ArtSugar is doing that wonderfully. She also said that I have a discerning eye and know what the chic female consumer wants in her home.
What are the milestones you plan to achieve in the next six months?
The financing from this investment will be used to expand ArtSugar’s product line, create immersive in-person experiences, grow the company’s artist repertoire, and enhance its e-commerce customer experience.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
If their business needs capital to grow, then they should just keep pitching, networking in their industry, and not give up. It’s important to persevere and say yes to the meetings and calls even if they don’t seem fitting at first. Be open-minded!
If their business needs capital to grow, then they should just keep pitching, networking in their industry, and not give up. It’s important to persevere and say yes to the meetings and calls even if they don’t seem fitting at first. Be open-minded!
Where do you see the company going now over the near term?
I see us expanding much more into interactive in-person experiences. Holiday 2021 will be our first launch of this kind, and I’m excited for that.
What’s your favorite outdoor dining restaurant in NYC?
Via Carota – It’s in the West Village where I live, and it has a great ambiance with delicious food.
