" MUSIC INNOVATION HUB Relevant financial solution for each of your business lines "Share
MUSIC INNOVATION HUB Relevant financial solution for each of your business lines
External Finance: Philanthropy, impact investment, equity crowdfunding, loan, sponsorship, grants
Internal Finance: Ticket sales, consultancy fees, space rental
Values: Social and cultural
Key takeaways of this inspiring case: Music Innovation Hub is the first social enterprise in the music sector in Italy, and the first to launch an equity-crowdfunding campaign. Founded in 2018 by three partners, the Hub intends to increase the opportunities in the field of music for young Italian talents, facilitate music education for new generations and contribute to the growth of independent music production by promoting stable employment. The model is based on various business lines including consultancy in the music sector, project development and management such as capacity building, and format creation in the music sector such as a music festival that brings the industry together. For each of these lines, different financial solutions are being followed.
Equity investment can lay the foundation of your organization: The founding members of the Hub invested €500,000 in equity and equity-based financial instruments in addition to the in-kind contributions. Cariplo Foundation, as a philanthropic organization, contributed €300,000 to the training program, as it is the business line with the strongest social impact. In addition, Cariplo Factory, which is a venture capital platform, invested up to €250,000 for technology in the multifunctional space, and loaned it to the Hub.
Equity crowdfunding to further strenghten the organization: Thanks to a campaign run on the Italian equity crowdfunding platform Lita.co, the Hub managed to collect €300,000. It was a seed funding campaign, which was supported by individuals 66.67% individuals, and 33.33% professionals. The Hub is also preparing for the second round of the campaign.
Using your network to support the sector: During the COVID-19 pandemic, in partnership with other organizations, the Hub initiated a one-off donation crowdfunding campaign to support musicians and professionals in the music sector. The campaign managed to raise €832,581 from 154 supporters of the project.