The phenomenon known as crowdfunding or participatory financing is generating a growing interest among creators of innovative products and content worldwide. In Canada, public funding is a limited resource, and while private sector financing for creative industries and innovation is on the rise, it’s still unable to meet the enormous demand for funding in this sector, particularly in the start-up and pre-marketing phases.
In this context, crowdfunding may fill an existing gap in the quest for new sources of financing in the sector that encompasses audiovisual content and production, video games and new entertainment technologies.
The Canada Media Fund (CMF) recently published an article, “Advice on best crowdfunding practices,” which appeared on its industry and market trend blog Trendscape in May.
Today, at the GROW Conference in Vancouver, the CMF announced the publication of a new study titled Crowdfunding in a Canadian Context: Exploring the Potential of Participatory Financing in the Creative Content Industries.
In keeping with its strategic oversight mandate, the CMF commissioned the Nordicity Group to present an overall picture of the crowdfunding phenomenon and identify its potential and limits in the legal, regulatory and cultural funding context in Canada.
In the course of the study, Nordicity analysts reviewed case studies and secondary sources, and also conducted interviews with industry stakeholders, including content producers and broadcasters as well as funding, certification and regulatory agencies.
The study first offers a definition of crowdfunding and an analysis of various existing models around the world (based on grants, loans or investment). Next, it presents an overview of the major crowdfunding trends in Europe, the US and Canada. It then outlines how Canadian producers might implement this practice within the legislative, regulatory and financial context for creative industries in Canada.
Altogether, this is a comprehensive review that includes both a macro view and an analysis of factors that may have an impact in Canada. Producers and entrepreneurs will also find a series of observations and factors that may be helpful in organizing an effective crowdfunding campaign.
The Crowdfunding in a Canadian Context: Exploring the Potential of Participatory Financing in the Creative Content Industries study is available online here.
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