Interview
The Japanese Start-up using NFTs and more to empower Artists

When Yuya Yoshida was studying in London, he was amazed by the city’s vibrant art scene. Around the city, there were galleries, museums, and studios where local and international artists could showcase their innovative work and gain access to customers. There was an entire network dedicated to supporting artists and valuing their work.

Meanwhile, in Japan, despite a rich cultural heritage, artists often faced barriers in generating revenue and reaching new audiences. This could even deter young Japanese from becoming artists. Yoshida wanted to address that.

“I felt that the art field in Japan is difficult,” recalled Yoshida. “The average age is quite old, and I saw many artists suffering in trying to make a sustainable income. I thought I had to do something to contribute to this industry.”

So, in 2019, he launched HARTi, a Japanese startup with a simple mission; help artists better market and sell for their products with the support of technology. At the start, HARTi opened a physical, Tokyo-based gallery with the idea of bringing digital tools to artists through this physical space.

Today, nearly five years later, HARTi does much more than just help artists – the company has shifted to using NFT (non-fungible token) technology to offer services including the buying and selling of digital collectibles and the streamlining of artists’ customer relationship management. They also expanded significantly, with a sales team in Japan and a development team in Indonesia.

“HARTi is a platform for established and up-and-coming artists to sell their art globally,” said Yoshida. “Right now, not many artists are using digital tools, so we have to let them know about NFT, generative AI, and many other emerging technologies.”

NFTs are unique digital identifiers that can be digital art products, recorded on a blockchain to certify ownership and authenticity, and that cannot be copied, substituted, or subdivided. They gained popularity and are seen as a way to combat illegal copyright infringement online.

In fact, it was the pandemic that led Yoshida and HARTi to embrace NFTs, as the pandemic forced the physical gallery to close and saw artists around the world face even more challenges in reaching customers. Their NFT marketplace now allows artists to sell digital collectibles and other goods directly to consumers. HARTi also provides various digital support to help artists expand their online presence.

So far, over 10,000 people are using the HARTi platform, including more than 80 Japanese artists. HARTi has also participated in TechCrunch Disrupt and was at CES last year.

One thing that has helped Yoshida reach new markets and improve their ability to aid creatives has been partnerships. In fact, HARTi has found a way to work with some of Japan’s largest and most established corporations.

“I’ve approached many traditional Japanese companies,” said Yoshida, adding that he believes “new technologies and startups need collaboration and support from large companies in Japan.”

One particularly innovative partnership is with the insurance giant MS&AD (Mitsui Sumitomo and Aioi Nissay Dowa Insurance). Earlier this year, they launched a pioneering insurance policy for NFT art in Japan. This policy protects exhibitors against the theft of artworks due to unauthorized access, among other risks. For example, if someone has an insured NFT compromised by a third party, they’ll get compensated.

“Insurance is very key to the sustainable growth of the NFT industry,” said Yoshida. It was a mutually beneficial partnership, he added. “Their team is quite innovative and is focusing on new industries to create new insurance products”.

Another benefit is that, now, transactions on HARTi's marketplace will have the option of being insured through this program, giving customers more security around their purchases. The partnership shows the potential for building tools and services on top of the HARTi platform.

While NFTs are central to HARTi’s offering, the company is quite different in its approach from other startups in the NFT space, which, after seeing significant buzz a few years ago, has seen a contraction in the past year. One challenge will be to attract the right balance of artists and customers.

“We have to attract users and attract artists, and we have to increase both at the same time. It's a difficult challenge,” said Yoshida. “We need to be bigger to support artists more.”

Despite the expansion into new technologies and working with diverse partners, at its core, HARTi remains focused on its initial mission – use technology to help artists increase and sustain income to support their creative endeavors.

Potential users and investors can get a chance to learn more about HARTi at CES in Las Vegas in January, where Yoshida’s team will share their unique platform, but also explore potential partnerships, international collaborations and expansion opportunities, including in the United States.

“CES is very important for approaching these potential international clients and building tangible relationships,” said Yoshida. “I think expansion to the US is a necessary step for us to become a unicorn and be part of a global trend”.