Fuelarts Presents Encouraging Data On NFT Investments

A recent report from Fuelarts analyzes the startup markets around art and NFTs, reviewing funding data and asking market participants about industry challenges.

Fuelarts Presents Encouraging Data On NFT Investments

Fuelarts, the startup accelerator based in New York, has recently released their Art+Tech & NFT Startups Report examining investments across art, tech, and NFTs throughout H1 2022. While the overall NFT and crypto markets have experienced a downturn, the report presents many positive data points showcasing the health of the NFT industry. Their definition of Art+Tech startups spans both physical and digital art startups, with digital art startups often including NFTs. The data comes from both public data and surveys from relevant industry strategists.

Some of the highlights from this report include:

  • In H1 2022, 123 Art+Tech startups received $2.6 Billion in total funding, which is 237% of the total investments from the entire year 2021.
  • 3.8% of the total funding went towards physical art startups, while 96.2% of the total funding went towards digital art/NFT startups.
  • From June 2021 to August 2022, 33 specialized investment funds have announced raising funds for deployment in Web3 startups (including Art+Tech & NFT). The total amount of announced assets is $23.72 Billion, with only $1.5 Billion (6.3%) already invested.
  • The US recorded the highest number of art+tech and NFT startups to receive funding followed by Singapore and the UK respectively.
  • 67% of respondents felt that better curation might help lead to the widespread acceptance of digital art by traditional collectors.
  • 50% of respondents felt that the biggest barrier to adoption of fractional ownership of art is the lack of a specialized exchange.
  • Yuga Labs, creators of Bored Ape Yacht Club, is the company that has received the most investment in H1 2022, which amounts to $450 Million.

Denis Belkevich, Founder and General Partner of Fuelarts, plans to increase the number of reports the organization produces a year, with future focuses on areas around gaming and marketplaces. While the NFT market is facing challenges, looking at a broader view of the market from this report, we can still see large increases in funding throughout 2022 vs. 2021 and a keen understanding of the challenges needed to grow the NFT market.