Art Money, a buy-now-pay-later company for artwork purchases, halts operations after running out of money

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Image: Art Money website

 

Art Money, the Australian fintech firm that revolutionized the art world with its ‘Buy Now Pay Later’ (BNPL) model, has abruptly ceased operations. The company, which once held the potential to be a billion-dollar enterprise, has found itself in a precarious situation due to a sudden financial crunch.

 

Art Money’s unique business model allowed art enthusiasts to purchase expensive artworks through their platform, spreading the cost over time. Since its inception in 2015 by Paul Becker, the company had facilitated the acquisition of over 20,000 works of art across 50 countries. Despite securing $100 million in debt finance and raising about $15 million from investors that include renowned art auction house Christie’s, the company has hit a financial roadblock.

 

The company’s founder and CEO, Paul Becker, expressed his disappointment in a statement on Art Money’s website. He acknowledged the company’s financial struggles and expressed regret for letting down those who believed in the potential of Art Money. In his words, "founders really only have 3 jobs: 1) Set and communicate the vision, 2) build a great team, 3) don't run out of money". He then added, "I’ve fallen short on job #3."

 

The company has paused operations as it seeks to secure an additional $5 million in equity, which Becker believes is necessary for the company to become profitable.

 

This development has sent shockwaves through the art and fintech industries. The sudden halt in operations has left many questioning the sustainability of the BNPL model in niche markets. The company’s future now hangs in the balance as it seeks additional funding to resume operations.

 

Will Art Money manage to secure the necessary funding and bounce back, or is this the end of the road for this innovative art fintech? What are your thoughts on this development? Share your views in the comments below.

 

 

Read more:

• https://www.artmoney.com/news/the-hardest-news-an-update-about-art-money
• https://www.news.com.au/finance/business/technology/aussie-art-fintech-business-on-brink-of-collapse-after-it-pauses-operations-to-recapitalise/news-story/1e7d87cac10e906c242e43aa1489ab1f
• https://www.9news.com.au/finance/art-money-australia-business-pause-operations/8b4f0926-124c-4cea-ad3b-b125236e0e89
• https://www.dailymail.co.uk/news/article-13512141/Art-Money-suspends-operations-Aussie-start-up.html