7 questions for 1 startup: Inkspot

Hello! This is Sergei, founder and editor of Startupt.co. If you've ever wondered about the intersection of traditional art forms and modern tech, you'll want to keep an eye on a startup we featured today for the Monday edition of our newsletter — Inkspot. This startup is trying to make a revolution in the tattoo world, making waves from Lisbon's vibrant streets to Porto's historic alleys.

In our deep dive into Inkspot, we start with a market overview that paints a picture of the tattoo industry's evolution. Then, we roll up our sleeves for a candid conversation with one of the co-founders — Elodie Pagaud. I asked her some questions about challenges, triumphs, and what's next for this spirited startup.

We also get a sneak peek at Inkspot's pitch deck—a behind-the-scenes look at what they're pitching to the investors to keep their dreams (and ink) flowing. And because no creative journey is complete without a soundtrack, we've curated a playlist that captures the essence of tattoo culture, designed to inspire artists and enthusiasts alike.

So, whether you're a tattoo aficionado, a tech enthusiast, or just curious about how cultures blend in the startup scene in Portugal, this piece offers a glimpse into a world where art meets innovation in the most colorful ways. Stay tuned!

📊 Market size. Quick look

Accoding to the reports from Gitnux and SkyQuest, the global tattoo market is projected to grow from $1.89 billion in 2022 to $3.55 billion by 2029, with a CAGR of 9.43%. The tattoo removal market is expanding rapidly, projected to increase from $128.6 million in 2021 to $12.15 billion by 2030, at a CAGR of 12.1%. Despite 76% of respondents believing visible tattoos decrease job prospects, the industry maintains a high average profit margin of 55%.

Tattoo popularity varies significantly across demographics and regions. For instance, 33% of female respondents and 27% of male respondents have just one tattoo, suggesting many do not pursue additional tattoos, possibly due to changing trends or cost concerns. Millennials lead in tattoo prevalence, with over 50% having at least one, indicating a generational shift towards body art. The trend is noticeable in cities like Los Angeles, Sao Paulo, and Milan, where a high percentage of the population sports tattoos, with Los Angeles topping the list at 43%.

During the pandemic, 19% of Generation Z in the U.S. acquired tattoos, underscoring the enduring appeal of tattoos as a form of self-expression among younger Americans. Interest in tattoos remains high globally, with 48% of Italian, 46% of U.S., and 35% of Greek internet users having at least one tattoo. This global and generational embrace of tattoos suggests a robust future for the industry, despite a slight decline in overall interest and ongoing professional biases.

MESSAGE FROM PARTNER:

💡 Inkspot's Pitch deck summary

Name: Inkspot

Industry: Tattoo, Beauty

Problems addressed:
- Tattoo artists depend on search engines for business visibility and lack efficient communication with studios.
- Artists face uncertainties with bookings and limited audience for their flash tattoos.
- Tattoo studios operate below full capacity and deal with disorganized guest spot requests.
- Clients struggle to find suitable artists and lack a centralized platform for exploring tattoo designs and artist portfolios.

Proposed Solutions: Inkspot introduces three innovative digital platforms to transform the tattoo industry:
- #INKSPOTGUEST: A platform enabling tattoo artists to easily find and book guest spots in studios around the world, filtered by location and style, enhancing their visibility and booking certainty.
- #INKSPOTFLASH: An online marketplace for artists to promote and sell their flash tattoos directly to a broader audience, streamlining client transactions and design selection.
- #INKSPOTSEARCH: A service that connects clients with artists through a system where clients can describe their desired tattoo and artists can directly respond, facilitating better matches between client desires and artist skills.

Market and business model: Strong presence in countries with high concentrations of tattoo studios in Europe such as Germany, France, Italy, Spain, and Poland, in a market expected to grow at an 8% annual rate until 2029, with over 3 billion potential worldwide.

Competitive Advantage: Inkspot differentiates itself by integrating digital transformation into the tattoo industry, creating a full-circle business opportunity that drives innovation and efficiency across artist bookings, design sales, and client-artist interactions.

Team: Comprised of individuals with significant expertise in marketing, branding, software development, and direct tattoo industry experience, including former employees of major advertising firms and a professional tattoo artist with extensive industry connections.

Current status and future outlook: Following the incorporation of the company and development of an MVP for #INKSPOTGUEST, the plan includes launching #INKSPOTFLASH and #INKSPOTSEARCH. The team has bootstrapped and is currently seeking funding to sustain operations for the next 18 months.

🧩 7 Questions with Elodie Pagaud

Q: How did the idea for Inkspot come to life, and what gap in the tattoo industry does it aim to fill?

A: On a rooftop in Lisbon, drinking beers, the creative juices were literally flowing. This was during a conversation between Shane and Arie, two of the three co-founders. They were discussing how nowadays, tattoo studios are always highly dependent on fluctuating demand from clients as well as the available tattoo artists in their studios.One strategy to attract more clients and diversify tattoo designs is to invite guest tattoo artists to work in the shop temporarily. Securing a guest spot can be challenging nowadays. At Inkspot, we aim to streamline this process by eliminating its borders and obstacles.

Q: What has been the most challenging aspect of launching and scaling Inkspot in the global tattoo community?

A: The challenge is to initiate a digital transformation within a notoriously traditional industry. We've received feedback that our digital and technical solutions are sought after in the industry. However, we must be careful and thoughtful about how we introduce our solutions, ensuring they're easy to use. Once we achieve that, we can easily scale, even globally.

Q: How do you ensure the quality and safety standards of the studios listed on the platform?

A: Our onboarding process for studios requires verification, meaning we have the ability to review and approve all studios. We've also introduced a review/feedback feature that allows studios and artists to share their experiences with each other, making it easier for us to intervene and take action if necessary. Safety is one of our top priorities. We aim to make it safe and enjoyable for artists to travel and guest wherever they want.

Q: How does Inkspot approach marketing and community engagement to build a loyal user base in the competitive app marketplace?

A: We prioritize studios and artists over clients. While this stance might seem blunt, it's what we firmly believe in. The tattoo industry is an enriching field brimming with creativity, yet when identifying our businesses, we are often categorized under 'others'. What sets us apart is that our features provide services that empower artists to tattoo where they want, what they want, and for whom they want. We ensure that they are less dependent on client demand and can instead create independently. We stimulate demand in the industry with our three solutions.

Q: How have you leveraged technology and innovation to streamline the booking process and what improvements can users expect in the future?

A: We've created a platform exclusively for tattoo professionals. This makes it easier for them to connect, eliminates borders, and provides a more efficient communication channel than currently available platforms to secure a guest spot. Our technology saves time and energy, allowing them to focus on what really matters - their art.

Q: What strategies you have implemented to navigate regulatory and legal challenges across different countries, especially concerning health and safety standards in tattooing?

A: The tattoo industry has long prioritized health and safety standards. Anyone who has received a tattoo from a professional can attest to the high level of hygiene and safety measures taken.At Inkspot, we aim to enhance this by providing free information and tools that can assist any artist or studio in improving these standards. Although we at Inkspot may not be the ones doing the tattoos, we take our responsibility seriously and help whenever possible.

Q: What business model does Inkspot employ to generate revenue, and how does it balance profitability with providing value to both tattoo artists and studios?

A: We implement a transaction-based service fee. This fee is charged because we provide artists with an easily accessible database showing available tattoo beds per region. This eliminates the need for scouring the internet, sending emails asking for guest spots, and provides immediate confirmation if their booking is accepted. For the studios, we generate an additional revenue stream. An empty bed doesn't generate income, so we suggest listing those empty beds to create extra revenue. All this is achieved by creating just one listing on the app.

🎧 Music to go deep

To feel the energy of tattoo salons and the idea to have an ink under the skin — here is a soundtrack that we collect specially for this issue of our newsletter: Spotify Playlist

That's all for today! See you next week. And don't forget to check your email on Thursday — you'll find a regular Startupt.co newsletter with the most important news about startup industry in Portugal.