Investing in the Creative Economy
The report Creatve Places and Businesses looks at investable opportunities in the creative economy with the potential to stabilize threatened communities and benefit regions looking to attract and develop quality jobs. This report suggests that impact investment can be used to shape a creative economy that is inclusive, equitable and sustainable.
Key findings include:
Creative Places and Businesses are ready for impact investing. Demand for impact capital will be strong among Creative Places and Businesses over the next five years throughout the U.S. This research identified 26 projects in 14 states with total project costs of $1.543 billion seeking impact investment capital for the period of 2017-2022. While this pipeline is illustrative, it is far from comprehensive.
Impact investors are seeking ways to deploy capital for creativity. Institutions that value the arts, storytelling, creativity, art lovers, art collectors, and artists themselves are looking for opportunities to align their capital with their priorities. The leading impact investing wealth advisors confirm that their clients are asking for opportunities to invest in the arts and the Creative Economy.
There are addressable barriers. The most immediate barrier is that Creative Places and Businesses must be recognized as a segment so that investors, intermediaries and project leaders can find one another and cooperate more easily. This will enable impact capital to truly meet effective demand. In addition, the ecosystem connecting impact investors to Creative Places and Businesses with sustainable business models must be strengthened. While the pieces are all in place – interested investors, vehicles for raising impact investment capital, vehicles for deploying impact investment capital, and investable deals – some effort is needed to intentionally connect these dots.