Varieties of cultural crowdfunding

Abstract

PurposeDue to the unique nature of the Cultural and Creative Industries (CCIs), the impact of crowdfunding on them is more significant than on other industries. This study investigates the association between crowdfunding campaigns in four different categories of cultural production and each campaign promoter's decision regarding platform choice.Design/methodology/approachWe classified cultural productions according to the Cultural Enterprise Framework. We collected data from 1,465 successful, reward-based, culture crowdfunding campaigns from five Nordic countries (Denmark, Finland, Iceland, Norway and Sweden). We used binary logistic regression for estimation purposes.FindingsWe find that cultural productions with a high degree of cultural affinity are more likely to use a local platform, while cultural productions with a higher degree of complexity in production or with composite motives are more likely to use an international platform. Additionally, the funding goal and the platform's financing model affect the probability of using an international platform.Originality/valueOur finding is that there is a relationship between cultural production type and crowdfunding platform choice, and that these choices can be crucial for campaign promoters. Based on the findings and empirical setting, there is evidence that campaign promoters of cultural productions with a cultural affinity orientation may choose to use local platforms, while promoters of projects with complex production requirements or composite motives for using crowdfunding similarly may tend to opt for international platforms. We also propose a framework for the categorisation of cultural productions.

Hustling in the creative industries: Narratives and work practices of female filmmakers and fashion designers

“…This finding supports the work of Rykkja et al. (2020), who found not only that crowdfunding platforms are increasingly important to CCI workers but also that the use of these platforms is context‐ and industry‐specific.…”

Financing the cultural and creative industries through crowdfunding: the role of national cultural dimensions and policies

“…Our paper presents some major findings and provides some new theoretical insights, as discussed below. First, this study contributes to the emerging literature and knowledge on the country-level determinants of crowdfunding in CCIs (Rykkja et al, 2020 ) by jointly considering the effect of national cultural dimensions and policies on reward-based crowdfunding activity across European countries. Although prior studies have used context to explore at a microlevel what makes a specific campaign successful (e.g.…”

“…Lending- and equity-based crowdfunding is prevalent in long-term oriented societies, while countries characterised by higher uncertainty avoidance register higher lending-based crowdfunding activity. Although prior studies have analysed the impact of formal and informal institutions on crowdfunding development, none of them have focused on CCIs (Rykkja et al, 2020 ). In this paper, we fill this gap by investigating for the first time the linkage between cultural dimensions and Europe’s crowdfunding activity in CCIs.…”

Crowdfunding in the Cultural Industries

“…For example, De Voldere and Zeqo 2017show that although Europe was home to some 600 crowdfunding platforms, almost half of European CCF campaigns (47%) between 2013 and 2017 were hosted on global US-based platform. In an attempt to explain such choice, a recent study by Rykkja et al (2020) analysing CCF campaigns from the Nordic countries has found that cultural productions with a higher degree of production complexity and those characterized as incorporating composite motives are more likely to use an international platform, while projects with high degree of cultural affinity opt for using local platforms. Additionally, they show that the higher the funding goal, the more fundraisers are likely to opt for using international platforms rather than local ones.…”