The Problem:
Most artists possess creativity and talent but often lack business acumen, leading to the widespread "starving artist" phenomenon. Despite their potential, these artists struggle to monetize their art effectively.
The Solution:
Art Mojo introduces a novel approach to art sales through crowdfunded publishing. This model eliminates upfront costs for artists and provides them with a platform to reach potential buyers directly.
How It Works:
- Artists launch campaigns on Art Mojo and promote them through their social media channels.
- Customers pledge to buy the art, ensuring that only popular and desired pieces are produced.
- Art Mojo manages the entire process from charging customers to printing and shipping artworks, and finally paying the artists.
Unique Selling Propositions:
- Artists face no upfront costs.
- Buyers receive art that has already been validated by the community.
- Art Mojo benefits from cash upfront, minimizing financial risk.
Market Opportunity:
- There are 2.7 million U.S. amateur artists with active social channels but lacking effective market strategies.
- The U.S. art market is robust with $1.6 billion in sales in 2023 alone.
- The art crowdfunding sector is projected to grow from $1.62 billion in 2023 to $4.8 billion by 2033 at a CAGR of 11.47%.
Competitive Landscape: Art Mojo stands distinctively in the market by combining crowdfunding, a marketplace, printing expertise, production, and distribution capabilities into a single platform. Unlike competitors such as Kickstarter and Etsy, Art Mojo provides an end-to-end solution specifically for artists.
Customer Acquisition Strategy:
- Current CPA for account creation is $7.46 with a 4.50% action rate.
- Cost per campaign creation stands at $67.83 with an 11% action rate.
- The tipping of campaigns sees a 37% action rate with a CPA of $183.31.
Unit Economics:
- Campaign retail value: $3,750.
- Artist payment: $2,297.46.
- Art Mojo’s gross profit per tipped campaign: $982.82.
- Gross margin stands at 26.21%.
Go-to-Market Strategy:
- Utilizing Meta advertising, email marketing, and direct interactions at art shows.
- Encouraging artists to promote Art Mojo within their networks.
Traction and Validation:
- Successfully launched a fully functional MVP.
- Demonstrated early success with a solid marketing funnel and significant user engagement.
Three-Year Financial Projections:
- Year 1: 629 campaigns, $913,649 in revenue, EBITDA of $240,778.
- Year 2: 2,745 campaigns, $3,987,228 in revenue, EBITDA of $1,742,109.
- Year 3: 4,624 campaigns, $6,716,554 in revenue, EBITDA of $3,544,891.
Our Team:
- Ken Pettit: 20 years in the printing industry, 15 years in global e-commerce, software developer, previously built and sold a printing company.
- Christine Dahlquist: 10 years in large-format printing, color management expert, research scientist, also built and sold a printing company.
Funding Request: Seeking $100,000 in a convertible note at a $1 million cap with a 20% discount. This funding will scale marketing efforts, enhance platform features, and provide the initial runway for growth.
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