Crowdfunding as a business model

Why do creative industries choose crowdfunding when starting projects or businesses? Anders Rykkja has taken a closer look at this in his doctorate, which he will defend on 27 November.

Portrait photo of Anders Rykkja with a light background.

Anders Rykkja will defend his doctoral thesis on 27.11.2023.

Photo: Private

Rykkja thesis is titled "Take a chance on me: Cultural crowdfunding as a necessary, complementary, or substitutive business model in the Nordic countries and in Spain"

A key term in Rykkja's research is "crowdfunding"

"Crowdfunding is a digital campaign-based platform-based method of raising funds for projects and ventures," writes the candidate to inn.no.

It is thus logical that cultural crowdfunding is defined as artists and other cultural job creators' use of crowdfunding as a business model.

In other words, it is the cultural and creative industries as a sector that has formed the framework for the thesis.

Based on an analysis of 7,653 cultural crowdfunding campaigns, Rykkja explains and describes why cultural crowdfunding is chosen as a business model, and how it is used.

He does this through three motifs.

"These are necessity, or usage due to a lack of other options, or usage motivated by crowdfunding as a supplement to or substitute for other sources of funding and financing," he explains.

In addition, drivers and barriers are identified that explain variation in use at geographical as well as industry level. These are linked to background factors and contextual variables. Examples of this are knowledge and attitudes towards crowdfunding among public institutions, use of incentives to encourage use, courses and educational options in addition to projects' funding needs and industry affiliation.

Previous crowdfunding research has primarily focused on campaign success. Rykkja argues that a weakness of these studies is that they are under-concerned with matters such as geography, funding targets or production practices.

The thesis is therefore a significant contribution to the literature in this field.

"as one of the few longitudinal studies that argue for greater sensitivity to contextual issues to understand the potential and impact of crowdfunding as a service innovation within cultural and creative industries," explains Anders Rykkja.  

Anders Rykkja has carried out his doctoral work as part of The PhD programme Innovation in Services in the Public and Private Sectors (INSEPP)

The main findings of the doctoral work:

  • Cultural crowdfunding mainly functions as an alternative funding mechanism for cultural projects that do not have access to other forms of funding.
  • The key themes in the research on cultural crowdfunding are related to value creation, fan communities, campaign success drivers, and experiences and failures with cultural crowdfunding.    
  • The research gaps are investigations of drivers and barriers to crowdfunding adoption by artists and cultural entrepreneurs and comparative analyses of platform market conditions conducive to successful development and growth. 
  • In relation to platform use, the choice of the platform type (local or international) differs according to each campaign’s classification into categories along two continuums: scope (local geographic anchoring vs. international adaptability) and scale (financial requirements—production vs. reproduction).    
  • Differences in the institutional environment may explain different level of support for the impact of scope or scale at the individual country level.     
  • Effective value co-creation between promoters and consumers acting as campaign supporters depend on how participation in valuation processes and the brand development strategy is managed.  
  • Success with value co-creation may require attention to and understanding of shifting consumption patterns in that consumption is simultaneously becoming more inconspicuous (more subtle, less flashy, and materialistic), while production value is moving in a conspicuous direction, implying that differentiation and positioning depend on dissemination of information and knowledge about methods, qualities of raw materials, and their sustainability. 
  • Match-funding programmes show signs of being successful in providing needed support; however, governments show reluctance to fully embrace the role of a facilitators. This may be a “lost” opportunity for the public sector, as the results show that the facilitation of match-funding does adapt to the real needs of the project promoters they intend to support.   

Here you'll find more information about Anders Rykkja public defence on 27 November 2023.

Contact information:

Anders Rykkja
Stipendiat
Mobil: +47 480 25 759

By Ole Martin Ringlund
Published Nov. 26, 2023 6:27 PM - Last modified Dec. 4, 2023 3:06 PM