Brussels, Belgium
External Finance: Venture capital
Internal Finance: Book sales
Values: Cultural and economic
Key takeaways of this inspiring case: What is special about MercatorFonds’ story is that it shows that it is possible to create new financial opportunities, to change direction, even if you are working in a niche field, like publishing art books. If financing patterns in your industry are changing, you may need to redistribute cards and pursue a new fundraising strategy, even if it means tapping into your established system.
Bring in a fresh perspective if sectoral changes affect your established business: FondsMercator is a publishing house that has been operating for more than 50 years. In FondsMercator's case, there were two reasons for seeking new funding: banks used to invest in art books, but they have now withdrawn, and the industry is becoming more dependent on museums and exhibitions. Also, the old co-publishing model has disappeared. Therefore, a publishing house has to take huge risks on its own in a complex field like art books. FondsMercator found a financial solution to this by turning to a new (to them) financing type: venture capital.
Explore new forms of financing to adapt: FondsMercator was lucky in that respect. Walloon Region of Belgium started a venture capital fund, St’art to support the culture and arts field (Check the tool’s database for more information on the financial provider) and the fund contacted Mercatorfonds to acquire new shares. However, there are many such venture capital companies or funds operating in a wider range of countries, even if they are not arts and culture oriented. Exploring such initiatives can open new doors for your activities as well.
Sources:
https://www.start-invest.be/fr/portfolio/?lang=en
https://www.lecho.be/entreprises/divertissement/le-fonds-mercator-accueille-st-art-dans-son-capital/9924800.html
