WEBVTT 00:00:00.000 --> 00:00:03.472 align:middle line:90% [MUSIC PLAYING] 00:00:03.472 --> 00:00:17.870 align:middle line:90% 00:00:17.870 --> 00:00:19.770 align:middle line:84% Well, there actually are a couple 00:00:19.770 --> 00:00:24.210 align:middle line:84% of interesting evolutions in the landscape for what 00:00:24.210 --> 00:00:28.470 align:middle line:84% has happened with respect to financing culture. 00:00:28.470 --> 00:00:34.240 align:middle line:84% I think there are two very important elements. 00:00:34.240 --> 00:00:36.730 align:middle line:84% One is, of course, the financial crisis 00:00:36.730 --> 00:00:40.860 align:middle line:84% and what it has meant for accessing finance 00:00:40.860 --> 00:00:43.410 align:middle line:84% for cultural and creative actors. 00:00:43.410 --> 00:00:48.470 align:middle line:84% And then the second element is, of course, digitization 00:00:48.470 --> 00:00:51.060 align:middle line:84% and social media and all the evolutions 00:00:51.060 --> 00:00:56.130 align:middle line:84% and the new tool-setting tests it has brought about. 00:00:56.130 --> 00:00:57.630 align:middle line:84% When we look at the financial crisis 00:00:57.630 --> 00:01:03.540 align:middle line:84% and the impact of finance for culture, of course one aspect-- 00:01:03.540 --> 00:01:07.470 align:middle line:84% and a very important pillar in financing culture-- 00:01:07.470 --> 00:01:13.780 align:middle line:84% is how it has affected public budgets. 00:01:13.780 --> 00:01:15.570 align:middle line:84% So in several countries there had 00:01:15.570 --> 00:01:19.200 align:middle line:84% been really significant budgetary cuts with respect 00:01:19.200 --> 00:01:22.330 align:middle line:90% to public finance. 00:01:22.330 --> 00:01:31.020 align:middle line:84% Another element that evolved from the financial crisis 00:01:31.020 --> 00:01:37.050 align:middle line:84% is also the way one looks at return on investment. 00:01:37.050 --> 00:01:41.580 align:middle line:84% And there have been a lot of discussions on financial return 00:01:41.580 --> 00:01:47.140 align:middle line:84% on investment, the major focus on that. 00:01:47.140 --> 00:01:49.800 align:middle line:84% And we see in the financing landscape 00:01:49.800 --> 00:01:56.310 align:middle line:84% nowadays that the debate on return on investment 00:01:56.310 --> 00:02:03.060 align:middle line:84% has diversified and that now you see new forms of financing 00:02:03.060 --> 00:02:10.080 align:middle line:84% popping up, trying to combine financial return on investment 00:02:10.080 --> 00:02:13.360 align:middle line:84% with also social return on investment. 00:02:13.360 --> 00:02:16.880 align:middle line:84% And this mix is very interesting for cultural organisation 00:02:16.880 --> 00:02:19.710 align:middle line:90% and cultural practises. 00:02:19.710 --> 00:02:26.940 align:middle line:84% That maybe has influenced what we call market finance. 00:02:26.940 --> 00:02:31.620 align:middle line:84% And you see new ways of finance developing. 00:02:31.620 --> 00:02:36.750 align:middle line:84% For instance, impact investment or impact investing 00:02:36.750 --> 00:02:41.860 align:middle line:84% is an interesting new thing that is evolving and growing. 00:02:41.860 --> 00:02:45.180 align:middle line:84% And then a third pillar in the financing landscape 00:02:45.180 --> 00:02:51.130 align:middle line:84% that has also developed in the last five years significantly 00:02:51.130 --> 00:02:56.820 align:middle line:84% is what we call informal finance or social finance. 00:02:56.820 --> 00:03:01.320 align:middle line:84% And that is a form of finance that has a different mechanism. 00:03:01.320 --> 00:03:06.690 align:middle line:84% Whereas when you want to attract public finance 00:03:06.690 --> 00:03:10.620 align:middle line:84% you have to write a dossier and argue 00:03:10.620 --> 00:03:15.170 align:middle line:84% why you deserve public funding, how your project fits 00:03:15.170 --> 00:03:23.430 align:middle line:84% in to the policy objectives in place, 00:03:23.430 --> 00:03:26.510 align:middle line:84% whereas for market finance the argumentation is 00:03:26.510 --> 00:03:28.410 align:middle line:84% about do you have a good business plan, 00:03:28.410 --> 00:03:34.120 align:middle line:84% can you repay the money that you will lend. 00:03:34.120 --> 00:03:38.220 align:middle line:84% In the formal sphere, the argumentation 00:03:38.220 --> 00:03:44.100 align:middle line:84% is about why do I deserve to get your money, 00:03:44.100 --> 00:03:46.290 align:middle line:90% what will I do with it. 00:03:46.290 --> 00:03:50.790 align:middle line:84% So you have to convince people that your project is 00:03:50.790 --> 00:03:52.110 align:middle line:90% worth their money. 00:03:52.110 --> 00:03:54.890 align:middle line:90% 00:03:54.890 --> 00:03:59.430 align:middle line:84% And crowdfunding, for instance, is a very nice example in that 00:03:59.430 --> 00:04:04.140 align:middle line:84% sphere, specifically when we talk about reward-based 00:04:04.140 --> 00:04:09.450 align:middle line:84% and donation-based crowdfunding, where actually you use 00:04:09.450 --> 00:04:14.220 align:middle line:84% a crowdfunding platform to launch a campaign in which you 00:04:14.220 --> 00:04:20.010 align:middle line:84% present your project and try to convince backers-- 00:04:20.010 --> 00:04:25.510 align:middle line:84% people in your inner circle but also in the outside world-- 00:04:25.510 --> 00:04:30.700 align:middle line:84% to finance or to provide finance for your project 00:04:30.700 --> 00:04:34.020 align:middle line:84% because they like it, because they think it 00:04:34.020 --> 00:04:38.100 align:middle line:84% is meaningful what you do, that you create a certain impact 00:04:38.100 --> 00:04:45.150 align:middle line:84% that aligns with their identity, with their values 00:04:45.150 --> 00:04:47.410 align:middle line:90% and their beliefs. 00:04:47.410 --> 00:04:53.190 align:middle line:84% So it's a different kind of mechanism to attract finance. 00:04:53.190 --> 00:04:59.100 align:middle line:84% And this new field makes the financing landscape 00:04:59.100 --> 00:05:02.910 align:middle line:84% for cultural and creative organisations has become 00:05:02.910 --> 00:05:10.470 align:middle line:84% richer, more diverse than it was like 10 years ago. 00:05:10.470 --> 00:05:17.700 align:middle line:84% All of these instruments-- be it public funding, market finance, 00:05:17.700 --> 00:05:18.675 align:middle line:90% informal finance-- 00:05:18.675 --> 00:05:21.390 align:middle line:90% 00:05:21.390 --> 00:05:25.800 align:middle line:84% they together make that the financing landscape has become 00:05:25.800 --> 00:05:30.060 align:middle line:84% richer for cultural and creative organisations, 00:05:30.060 --> 00:05:35.910 align:middle line:84% and so also the opportunities to create a financing mix that 00:05:35.910 --> 00:05:41.730 align:middle line:84% fits their needs, that also evolve over time. 00:05:41.730 --> 00:05:44.430 align:middle line:84% For an organisation at some point they need this type 00:05:44.430 --> 00:05:46.080 align:middle line:90% of financing. 00:05:46.080 --> 00:05:48.390 align:middle line:84% At another moment, they need another type of finance 00:05:48.390 --> 00:05:50.680 align:middle line:90% also to balance. 00:05:50.680 --> 00:05:54.780 align:middle line:84% So in that sense, it's a positive evolution that you see 00:05:54.780 --> 00:06:01.050 align:middle line:84% in the financing world that this diversity of possibilities 00:06:01.050 --> 00:06:03.900 align:middle line:84% for cultural and creative organisations has increased 00:06:03.900 --> 00:06:05.700 align:middle line:90% a bit. 00:06:05.700 --> 00:06:09.050 align:middle line:90% [MUSIC PLAYING] 00:06:09.050 --> 00:06:09.835 align:middle line:90%