Matchfunding Momentum: The Effect of Institutional Funding on the Success of Crowdfunded Cultural and Creative Projects

Purpose: This study examines the impact of matchfunding from public and/or private funders on the success of online crowdfunding campaigns. We explore the signaling effects and crowding-in potential of institutional funding in the cultural and creative industries. Study Design: Using a unique dataset of 2,032 arts-related projects from a Dutch crowdfunding platform, we employ stepwise multilinear regression analyses, including moderation and mediation models, to test our hypotheses. Findings: Matchfunding significantly increases the total funding raised and ensures campaign success. Contributions from public partners and early-stage funding demonstrate stronger positive effects compared to private partners and later contributions. While matchfunding may not increase the number of backers, it boosts the average donation size. Contributions: This study advances the literature on alternative finance and cultural funding by providing empirical evidence on the effectiveness of matchfunding via crowdfunding platforms. We introduce new independent variables related to institutional funding, addressing a gap in the context of alternative financing. Implications: Demonstrating that ‘matchfunding matters’ can encourage institutional partners, campaigners, platforms, and backers to leverage online matchfunding. It offers a cost-effective method of pooling resources to support arts, culture, and creativity through crowdfunding platforms.