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Several entrepreneurs have harnessed the power of the community to raise capital to get their ideas off the ground. However, entrepreneurs are not the only ones to benefit from the concept. Crowdfunding also opens up several possibilities for people and institutions to work together on culture and heritage products through a concept known as matched crowdfunding.

 
Matched Crowdfunding for Arts, Culture and Heritage Projects
 


Matched crowdfunding for Arts, Culture and Heritage Projects

Today, donation and reward-based crowdfunding are being increasingly used to fund everything from charitable causes to art festivals. Matched crowdfunding goes a step further by involving funds from government bodies or large organisations to match the money raised on a platform for a project. This helps the “public money go further” by ensuring both financial and voluntary support from the public.

According to Nesta, “Matchfunding, where institutional funding is matched with crowdfunding on an online platform, is attracting increasing amounts of interest from public and philanthropic funders interested in understanding if a match fund can make public grant money go further, get more people involved in developing and supporting projects and use the knowledge of ‘the crowd’ to test public demand for projects.”

In October 2017, Nesta published a report titled ‘Matching the Crowd’ based on a pilot project carried out with the Department for Digital, Culture, Media and Sport to analyse the financial and non-financial impacts of matched crowdfunding. As part of this pilot plan, two funds providing £251,500 in match funding for crowdfunded arts and heritage projects were set up. Eventually, 59 projects were funded through this pilot with support from 4,970 backers.

According to the report, match funding can bring in more finance for arts and heritage projects. Besides, match funding can also increase the average donation size, says the report.

Below is a summary of some of the key findings of the report:

  • Matched crowdfunding can help mobilise additional funds for arts and heritage projects. The £251,500 in match funding provided by Arts Council England and Heritage Lottery Fund as part of the pilot helped leverage an additional £405,941 from the crowd of 4,970 backers.
  • 20 per cent of the backers had never funded any arts or heritage projects. This means, matched crowdfunding can attract new supporters and finance for arts and heritage-based projects.
  • Matched crowdfunding goes beyond increasing financial contributions. 85% of fundraisers reported receiving non-financial contributions such as voluntary work offers and campaign design advice.
  • Matched crowdfunding campaigns can bring people closer to art and heritage. As per the report, two in three project backers expect to visit/experience the project they supported in person.
  • Interestingly, more than two in three fundraisers reported that running the crowdfunding campaign significantly improved their pitching and fundraising skills.

You can read the full report here.


Matched Crowdfunding in Australia

In Australia, one of the most interesting examples of matched crowdfunding is the MATCH Lab, which is a fundraising platform initiated by the Australian Cultural Fund (ACF) to encourage donations for promoting arts.

Through this platform, artists can start fundraising campaigns to raise money for their art. Creative Partnerships Australia that manages the platform matches the amount raised by the artists on the platform, dollar by dollar, up to AUD 10,000.

Donations over AUD 2 are tax deductible through the ACF.


Facilitating development across sectors

Benefits of crowdfunding can be seen across the ecosystem. From promoting arts to facilitating social causes to accelerating innovation in business and technology, crowdfunding has emerged as a popular alternative to traditional financing today. Crowdfunding also returns some power in the hands of customers by giving them a chance to support and be part of projects they would like to succeed.

In Australia, the latest to join the crowdfunding bandwagon is HashChing, a borrower-friendly online marketplace that has settled (as at 31 March 2018) home loans worth [$797 million] for over 36,000 borrowers in less than three years.

HashChing has partnered with the equity crowdfunding platform Equitise to issue its first round of shares to interested investors who can make an investment in the company with a minimum of $250, worth 200 shares. The offer is open to the public on the Equitise platform until 5 pm (AEST) on 15 June 2018.

The fresh capital would be used to increase brand awareness, introduce new technology and expand the team. The crowdfunding campaign is also an attempt to keep HashChing free from the influence of any major bank so that it can maintain its position as an independent and transparent mortgage marketplace, explains Mandeep Sodhi, CEO, Hashching.

Read more about the offer here to partner with one of Australia’s fastest growing fintech companies that keeps its customers’ interests first.


About HashChing

HashChing is a borrower-friendly online mortgage marketplace that enables home borrowers to compare broker pre-negotiated home loan deals from over 80 lenders across Australia. Using sophisticated algorithms and artificial intelligence, HashChing connects borrowers to local mortgage brokers, ushering the concept of on-demand service that was previously unheard of in the mortgage industry.

One of the fastest growing fintechs in the country, HashChing is backed by VC firms such as H2 Ventures, Picus Capital, and Sapien Ventures. Currently, the company is raising more capital via equity crowdfunding for investing in technology and expanding their footprint.

Disclaimer: Like any investment, Crowd-Sourced Funding (CSF) is risky. Investors may lose their money, and the business may not achieve its objectives. You should consider the CSF offer document and the general CSF risk warning contained in the offer document in deciding whether to apply under the offer.

 

By Vidhu Bajaj,
HashChing Content Writer

 

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