An Impact Fund for Culture: A Good Idea?
It would be shortsighted to think only impact investors are trying to make a positive impact on the world they live in. The cultural world, too, has traditionally favoured stories of innovation, ethical production and enhanced social fabric in our communities. Can the worlds of impact and culture intertwine to inspire meaningful change? It is one of the central questions in a recent report commissioned by our member, Stichting DOEN.
The report, aptly titled Impact Investing in the Cultural and Creative Sector, was presented at Investing in Europe’s Creative Future, a recent event hosted by EIT Creativity & Culture in Amsterdam. It takes the form of a feasibility study, exploring the potential for setting up an impact fund dedicated to cultural production in the Netherlands. If set up, it would not only be the first of its kind in the country, but in Europe. Despite the transformative potential of the cultural sector, it has largely remained outside the scope of traditional impact investing.
Taken more broadly, the financing landscape for the cultural sector is quite fragmented, according to the report. While government subsidies dominate, there are growing opportunities for loans, private funds, and risk capital. Still, cultural enterprises face barriers like small scale, informal structures, and high dependence on grants.
As a framework, the report outlines three key perspectives on culture: the “creative economy” (as an economic driver), “culture as a public good” (intrinsic societal value), and the “social and solidarity economy” (as an agent for systemic change). Examples are given of how culture can inspire new perspectives, while also acknowledging the difficulties in measuring cultural impact.
Six potential focus areas stand out for cultural impact investment:
- New Materials and Crafts
This sector blends traditional craftsmanship (e.g. weaving, ceramics, woodworking) with cutting-edge innovation and attention to the environment. Designers and artists experiment with sustainable materials such as mycelium or seaweed-based dyes to develop circular production methods.
Many operate on the edge of art, science, and entrepreneurship, requiring business development support, IP expertise, and venture studio-style incubation.
- Ethical Fashion
Targeting one of the most polluting industries, this area supports startups and brands that promote sustainable production, fair labor, and recycling in fashion. Brands like MUD Jeans and Loop.a Life, supported by DOEN, exemplify this model. Ethical fashion is also a cultural force, reflecting identity and community values.
Investment needs include early-stage capital, scaling funds, and brand-building mentorship. Revenue models often center on product sales, subscriptions, and resale.
- Social Design
Designers and architects in this field create tangible solutions for social issues—ranging from inclusive public spaces to assistive technologies for people with disabilities. Often structured as small studios or collectives, their revenue comes from project commissions, NGOs, or government tenders.
Financing models like Social Impact Bonds could support this work, but these designers typically need bridge funding and tailored support rather than equity.
- Cultural Spaces
This includes creative hubs, studios, community theaters, and multi-use cultural buildings. These spaces promote collective ownership, local engagement, and often reuse or repurpose urban infrastructure.
Many are developed through grassroots efforts and financed via bonds, cooperative ownership, or mixed models. Impact investors can support real estate acquisition or renovation, ideally through steward ownership or community land trust models.
- Cultural Productions and Expression
This area encompasses theatre, film, music, festivals, and games that express social themes or promote inclusive narratives. Productions need upfront capital for development and execution, with income typically recouped through ticket sales, royalties, and licensing.
Revenue-based financing and bridge loans are well-suited to these time-sensitive, project-based models. There’s also opportunity to fund accompanying social campaigns, like those seen in documentary production.
- “The Culture” (Grassroots Creative Movements)
This segment refers to dynamic, often informal networks led by bicultural creatives and collectives from underserved communities. These entities work at the intersection of art, activism, and entrepreneurship—challenging dominant norms and generating new narratives. Their cultural relevance is high, but they frequently face systemic funding barriers.
Investment in this area requires patient capital, trust-based relationships, and models that account for alternative governance and collective ownership.
As made clear through the examples above, financing for these enterprises is not a one-size-fits-all solution. While fund models are proposed, they also include a blended finance approach that combines grants with equity, venture studios, and revenue-based financing. The authors (Arthur Steiner and our own Martijn Blom) conclude that while challenges remain, there is significant potential and enough interest from both entrepreneurs and investors to warrant concrete next steps.
Top Level Takeaways
- The creativity and culture sector has strong impact potential but is underrepresented in impact investing.
- Nevertheless, there is clear investor and sector interest to pursue fund development.
- A dedicated impact fund, if established, must balance financial, social, and cultural goals.
- Six subsectors are particularly promising for investment.
- Tailored, blended financing models are needed.
You can download the report here: