What is an art share?


When one of our artists start a funding campaign, they sell a percentage of their artworks on creatyve in the form of shares.

Owning an art share is like owning a virtual piece of the artwork. The owner is entitled to a part of the revenue generated when the artwork is sold, in accordance to his percentage. The ownership and rights of the artwork belong to the artist.

Funders can hold these shares in their creatyve portfolio and once the campaign has ended they can sell them in the creatyve market.

Here is a simple example of the process:

1

Laura is a London artist. She usually sells her paintings at around £3000 and she is currently working on a new one. She decides to sell 30% of this new painting on creatyve, aiming to raise £1000 in her campaign (setting the total value of her artwork at £3333).

2

We create one-hundred £10 shares that investors can purchase during the duration of the campaign. After the campaign ends, shares will be freely exchangeable on our platform with prices given by demand and supply.

3

5 months after the campaign ends, Mr. Koch, a rich hedge fund manager, falls in love with Laura's painting and decides to buy it for £10'000.

4

Laura receives £10'000 and returns 30% of that to creatyve and in turn, to her shareholders. All investors are then paid out at a price of £30, given that the new 30% is now worth £3000.


Clearly, this example is for illustrative purposes only. The value of the artwork present on creatyve will not always increase in value and many times it may be the case that an investor loses part or all of his money. For instance, this may happen if Mr Koch in the example above were to buy the artwork for less than its initial value (£3333). All investors would thus receive less than the £10 they spent for each of their shares.


For more investor information, visit our About us Page