The use of crowdfunding to attract new arts patrons
Digital transformation has brought about new opportunities for democratization. This is especially true in the context of the arts, a field traditionally characterized by elitism and separation between production and consumption (Massi et al., 2020). In particular, the digital environment has provided cultural producers with new chances to engage with donors and backers (Booth, 2015). The most disruptive process being introduced in this context has probably been crowdfunding, a process aimed at raising “external financing from a large audience (the ‘crowd’) [...] instead of soliciting a small group of sophisticated investors” (Belleflamme et al., 2014, p. 585). In particular, digital crowdfunding is increasingly becoming a common practice within the arts and culture sector, making it possible for organizations, such as museums and theaters, as well as artists and other creatives to sustain their business through support derived from digital platforms. Despite the growing debate on new forms of art funding, only a few empirical studies on crowdfunding have emerged to date in the arts field (Boeuf et al., 2014; De Filippi, 2015).
Crowdfunding might function as a more inclusive form of art consumption, leading to democratization of the fundraising process. Once artists and art projects were funded almost exclusively by monarchs, the aristocracy, and popes and cardinals. Now a fragmentation of the traditional patronage paradigm has occurred which is spread out to different patrons, that is, those who have a stake in the project (Brabham, 2017). As a “very democratic way to resource the arts,” crowdfunding takes “the decisionmaking out of the hands of the gatekeepers” and places it “in the hands of the mob” (Creative Partnerships Australia, 2017).
As stated in the mission of Indiegogo, one of the first established crowdfunding platforms, crowdfunding allows for democratization of fundraising and empowers everyone across the world to fund their passions. Crowdfunding, therefore, seems to encourage people, opening up new spaces for value co-creation. Individuals can be extremely motivated to support an organization or a project because they share the values or mission of the organization or because they are simply motivated by the need to belong to a community. However, while several scholars (e.g., Mollick & Robb, 2016) have celebrated crowdfunding as a means of democratizing the arts funding process, others have criticized it, warning that “an uncritical embrace of an Internet trend may threaten public funding for the arts by aligning with neoliberal ideological language” (Brabham, 2017, p. 983). Crowdfunding platforms use two main funding models: “all-or-nothing,” which allows the creator of the project to retain the amount collected only if he/she reaches
The impact of digital transformation 255 or exceeds the funding goal, and the “keep-it-all” that allows the creator to retain the crop regardless of the achievement of the funding goal. Massi et al. (2020) found that backers are more willing to support a project when they receive a reward for supporting the project.
Crowdfunding platforms can be classified based on their orientation (profit vs. nonprofit) and their focus (general vs. vertical). Generalist platforms, such as Kickstarter and Indiegogo, are dedicated to a variety of sectors. In contrast, platforms such as BeArt are dedicated to contemporary art and do a curatorial selection of projects. Art Basel crowdfunding (born from a partnership between Kickstarter and Art Basel fair) and Art Happens (crowdfunding platform of the Art Fund UK) are dedicated only to nonprofit projects.
The success of crowdfunding as a way to raise money to fund projects in the arts and culture highlights the importance of the introduction of innovative and backer-friendly ways of funding projects. Digital crowdfunding is increasingly becoming a common practice within the arts and culture, representing for art organizations and artists a new way for sustaining their business.
