TechBeat Canada recently met with Craig Follett, Co-Founder, Peggy.com, an innovative social platform that gives access to sought-after art and pays royalties to artists. Peggy has partnered with 30+ contemporary art galleries from around the world to feature artists that push the boundaries of contemporary art. All artwork is original and made by highly acclaimed artists.
If someone google’s your business, what will the prospective customers search for in the google search bar?
Prospective collectors might use search queries like “Buy contemporary art online,” “Contemporary artists in Toronto,” or “Online art auctions.”
What inspired you to start your company, and what problem are you aiming to solve with your innovation?
After I bought my first house, I wanted to make it a home by filling the walls with art. But the question of where to buy art (and what art I should collect) wasn’t easily answered. I visited local art fairs, chatted with artists and galleries, and learned about the presence of art royalties in Europe and their absence elsewhere. While high-net-worth collectors could buy a Picasso or Basquiat and resell it effortlessly, most of the art world couldn’t afford the same flexibility.
In other words, there were a lot of ways that the art world could be better for artists, galleries, and collectors. I collaborated with my longtime co-founder, Adam Meghji, who had started his own art-collecting journey, to think of ways to bring art to more people. The result is an app that supports the important work artists do while addressing the pain points that collectors experience.
Can you describe the core technology behind business? What makes it unique and potentially disruptive in your industry?
The core technology is the Peggy-designed Digital Fingerprint—the first technology to use AI to enable verified resale and facilitate artist royalties. The Digital Fingerprint is disruptive in the art world because the status quo for artwork authentication is failing.
The age-old method for artwork authentication relies on an analog self-reported method of tracking the chain of ownership, also called provenance, from the artwork studio to the most recent owner. Due to the lack of authentication, artists and collectors have been exploited by forgeries. Most recently, the largest art fraud in world history occurred, imitating renowned Ojibwe artist Norval Morrisseau.
More than 1,000 artworks were seized from a forgery ring relying on child labour. Famed institutions are not immune to art fraud, either. In 2022, the FBI seized 25 artworks said to have been created by Jean-Michel Basquiat from the Orlando Museum of Art.
The patent-pending Digital Fingerprint uses artificial intelligence and machine learning technology to create a digital fingerprint of the artwork. It eliminates human error and minimizes fraud in authenticating art, and the best part is how easy it is to use. To create a digital fingerprint, artists scan the artwork with their smartphone camera, and the AI
creates a unique identity for the artwork within a few minutes. To authenticate a work, collectors simply need to take a few captures of the artwork to match the digital fingerprint and register ownership. Beyond authentication, the Digital Fingerprint enables artists to earn royalties on all future sales. In many countries without legislation, artwork will sell on the secondary market for 10x what the artist initially earned. Without Peggy, artists receive $0 of this upside. Even when artist resale rights are introduced, the fine print can block artists from getting paid.
What products are offered by you and who is your target audience?
Peggy has the following products:
- Core marketplace—where collectors can discover, buy and sell contemporary art. On the discovery side, the core marketplace has Pegboards, Pegcasts, Insights and editorial content to build community engagement while collectors discover the art on Peggy.
- Your Vault—where collectors onboard their existing art collection onto Peggy and unlock the power of the Peggy-designed Digital Fingerprint.
- Concierge—a complimentary service for all contemporary art questions and requests.
- LLM—a virtual extension of the concierge service, allowing collectors to have their contemporary art questions answered.
- Royalties—Peggy pays a 5% royalty to artists and participating primary galleries on all secondary sales.
- Auctions—Peggy powers online auctions for contemporary art and art collectables.
Peggy isn’t just another app for scrolling through unattainable art. It’s an app for looking at, learning about, buying, and even selling art. And everyone is welcome.
Every business faces challenges. Can you share a significant obstacle your team has overcome, and what lessons did you learn from it?
One obstacle Peggy overcame was building trust and credibility within the art community. The art world is one of the last analogue industries— think paper certificates of authenticity. Moreover, there is a hesitancy within the incumbent art community to fully open the technology floodgates, especially when navigating generative AI and its impacts on artists. The Peggy team focused on our four cultural values to overcome this obstacle—security, storytelling, straightforwardness, and forward-thinking. In doing so, Peggy established itself as a reputable platform for artists, galleries and collectors. The lesson learned was prioritizing transparency, authenticity, quality, integrity and reliability in building long-lasting stakeholder relationships.
Where do you see your company in five years, and how do you envision your technology evolving?
In five years, Peggy envisions itself as a leading destination for discovering and purchasing contemporary art. Peggy will also power auctions in contemporary art and art collectables spaces. The technology will evolve to incorporate advanced AI and AR features, allowing collectors to experience artworks in their spaces before purchasing.
How does your startup stand out from competitors, and how do you plan to maintain or enhance your competitive edge?
Peggy is the only social marketplace for discovering, buying, and selling contemporary art, so there aren’t any direct competitors. It is also the only art marketplace with verified resale and royalties on all secondary sales. Beyond this, Peggy stands out from companies in an adjacent space by emphasizing community engagement, artist empowerment, and transparency in the art-buying process. Peggy plans to continuously innovate the platform, expand its artist network, and enhance user experiences through personalized recommendations and immersive technologies.
What impact do you hope your technology will have on society or your target industry?
Peggy is re-envisioning the art market by establishing Art 2.0. We believe that artists are the ultimate observers of society—sharing messages of expression, reflection and preservation that create change. Our mission is to support the livelihoods of artists. What does this mission look like materialized? A world with art in every home. Peggy isn’t just another app for scrolling through unattainable art. It’s an app for looking at, learning about, buying, and even selling art. And everyone is welcome.
Peggy hopes its technology will democratize the art market, making it more accessible and inclusive for collectors and art enthusiasts from diverse backgrounds. By providing a platform for artists to thrive and for collectors to discover unique pieces, Peggy aims to enrich society’s appreciation for art and creativity.
Based on your experience, what advice would you give to aspiring tech entrepreneurs looking to launch their own startups?
Dear would-be entrepreneurs: just make the leap. https://peggy.com/artworks/sleep-39?invite_code=CRAIG
To make the leap, break down your process by setting up challenging “hurdles” for yourself, and if you make it past all of them, then you’ve made the leap – this is the approach I described in my process of starting my first venture.
https://entrepreneurship.uwo.ca/services/ondemand-learning/podcasts/2019/04/de-risking-the-d ecision-to-leave-the-corporate-world-as-an-entrepreneur-w-craig-follett/
Dear entrepreneurs: observe the world around you, and evolve that reality for the better. https://peggy.com/artworks/sleep-48?invite_code=CRAIG
Partnership and Collaboration: Are there any strategic partnerships or collaborations that have been pivotal to your success, and how do you choose the right organizations to work with?
The partnership with Pablo’s Birthday, a gallery in NYC, was an inflection for Peggy. Pablo’s Birthday selected Peggy to power a charity auction to celebrate the gallery’s 21st birthday. The auction had an incredible sell-through rate and active bidding activity until the auction ended. After the Pablo’s Birthday auction, Peggy added auctions to the roadmap and has since powered the Secret 7” auction, raising USD 266,000 for charity. Peggy focuses on partnerships and collaborations in the auction space with organizations producing auctions in contemporary art and art collectables.
Yugbodh (YB) is a contributing writer at Tech Beat Canada, he skillfully weaves captivating stories. For him music and movies serves as an escape, and he finds them fascinating as they constantly evolve. If you have interesting tales to share, feel free to reach out via email at: info@techbeat.ca
