This article was originally published in Impact Insider and is republished here in our Artivism section with the kind permission of its founder and author, Carsten Terp.
Now the investment company DOEN Ventures wants to explore whether there is a basis for setting up an impact fund that can invest in art and culture. This sparks curiosity – but also skepticism – in Denmark.
Where will the ideas for a sustainable future come from?
According to Merijn ten Thije of Dutch investment company DOEN Ventures, we should look to the world of art.
It is a breeding ground for innovation. A cradle for radical social transformation. But it lacks funding – and that needs to change.
“Today, most investments go toward the green transition. That’s great – we’re actively involved in that ourselves. But ideas about what a sustainable future might look like rarely emerge in the corporate world or the financial sector. Ground breaking ideas could also arise from the arts and culture,” says Merijn ten Thije.
That’s why he and DOEN Ventures are exploring the possibility of creating an impact fund that invests in arts and culture.
“We want to invest in these ideas – not only because they hold cultural value but because they are essential to driving social change,” he says.
As principal impact investments at DOEN Ventures, Merijn ten Thije represents one of the pioneers in the impact investing field – and one of its most risk-tolerant players.
The impact investment vehicle is a spin-off from the Dutch foundation Stichting DOEN, which is funded by the Dutch Postcode Lottery. Each year, the foundation distributes approximately 30 million euros across green, socially inclusive and creative initiatives – around 225 million Danish kroner.
Since its founding in 1991, DOEN Ventures has invested in ecosystem-building, as well as early-stage technologies and companies with the potential to improve society.
Examples include the mobile phone manufacturer Fairphone and Ecovative, a company that develops biodegradable materials based on mycelium as an alternative to plastic, foam, and leather.
“We focus on making catalytic investments at a very early stage in technologies and businesses with strong potential to create impact,” says Merijn ten Thije.
In a new study commissioned by DOEN Participaties, two researchers – one art expert and one investment specialist – examined whether there is a basis for setting up an impact fund that channels capital into arts and culture.
In other words, a fund that aims to generate both social and financial returns.
And when asked whether there are enough investable opportunities, Merijn ten Thije’s answer is clear:
“One hundred percent.”
The researchers identified six focus areas which, over time and with the right strategic approach, could become attractive to a category of fund investors who want to do good for the sector and experience being an investor with like-minded people at the the same time – such as family offices, foundations
“You could buy your fifth Van Gogh painting. or you could invest in the creative industries in a way that truly drives change and leaves a lasting impact,”,” says Merijn ten Thije.
New Materials and Craftsmanship
Focus on sustainable materials and the revival of traditional crafts – for example, through innovation in mycelium, textile technology, and circular production.
Ethical Fashion
Circular and socially responsible clothing brands that combine aesthetics, identity, and sustainability – often rooted in subcultures and communities.
Social Design
Design and architecture-based solutions to social challenges, developed in collaboration with citizens, users, and local communities.
Cultural Gathering Places
Physical spaces such as workshops, venues, creative hubs, and community centers where togetherness and cultural expression go hand in hand – often based on co-ownership and local anchoring.
Cultural Expression and Productions
Theatre, film, games, music, and other artistic formats that offer new perspectives and address social issues.
Culture as a Movement
Artists and creative entrepreneurs with roots in minority communities and youth culture, where art and social change are closely linked.
Source: Feasibility Study Impact Investing in the Cultural and Creative Sector, DOEN Ventures B.V.
All six areas combine social relevance with commercial potential. Some – such as new materials and ethical fashion – already show signs of commercial activity. Others, like social design and cultural gathering places, will require more time and patient capital to mature.
But over time, they too could become investable – even for more financially oriented investors, the report concludes.
And the opportunity isn’t limited to the Netherlands. Merijn ten Thije believes that targeted investment in the creative sector could give Europe a global competitive edge.
“If you look at current global developments, Europe has a unique advantage because we have so much high-quality, culture and creative minds. Why not help grow this sector in new ways?” he asks.
According to Merijn ten Thije, today’s developments in arts and culture are largely driven by public funding and philanthropy. This is a great and we do not want to change this, but creating an investment fund next to this could attract additional resources to the sector.
Andt greater interest from investors could inspire more young people to combine artistic talent with entrepreneurship.
“If you’re a student today and dream of becoming a social entrepreneur, the green sector is full of role models and opportunities,” says Merijn ten Thije.
It’s a different landscape if your passion lies in artistic expression.
“If we start building the ecosystem within the creative sector, we’ll attract more talent and entrepreneurs who can build strong teams and develop ideas with high impact.”
That development could also have a positive side effect: greater investment in market-ready art may free up funding for less commercial artistic projects.
“The more we invest in things that are investable, the more philanthropic funds are left for what is not. It makes the sector as a whole more sustainable,” he says.
Currently, impact investing and the arts exist in two largely separate worlds. Bridging the two – financially and conceptually – will take work.
An impact fund could help build that financial infrastructure, Merijn ten Thije believes.
“We are still at a very early stage,” he stresses.
“But the energy, creativity, and enthusiasm we encounter in the sector is incredibly encouraging.”
The Dutch ideas are sparking curiosity at the organization Invest for Impact Denmark.
“An impact investment fund with art and culture as its impact theme is a new and exciting opportunity, and we look forward to following it,” says Stine Lomholt, head of the secretariat.
But she emphasizes that it is crucial to clearly define which societal challenges such a fund’s investments are meant to address, what the intended change is, and how progress will be tracked through data collection.
“An impact investment is made with the intention of generating positive, measurable societal effects alongside a financial return. That’s why it’s absolutely essential to have a clear strategy for how impact is created, measured, and documented. This requires a well-defined theory of change and the establishment of specific impact KPIs,” says Stine Lomholt.
Merijn ten Thije acknowledges that there are challenges to overcome if the dream of launching an impact fund focused on culture is to become a reality.
Measurement is one of them. But at this stage, it is other operational challenges that occupy him most.
“Especially with this fund — which would be groundbreaking in its field — it’s primarily about finding the right talent to lead it, identifying the right investments, and assembling the right teams,” says Merijn ten Thije.
“And of course, you need to find the right level of reporting and measurement. But I believe there are many ways to approach that.”
In their report, the two researchers list five key preconditions for a successful impact fund investing in culture:
Despite completing the study, DOEN Ventures is still in an exploratory phase, Merijn ten Thije explains.
“We’ve reached out to potential fund managers to find out whether they would want to be involved if we decide to establish such a fund – and, if so, what it should look like.”
A conventional venture capital structure is unlikely to work here.
“You obviously don’t want a typical VC person running this. Maybe you need some of those capabilities, but you also need people on the team who understand the sector and entrepreneurs behind it very well and know where the investable cases are.”
Whether these early steps will lead to the creation of an investment fund – and whether DOEN Ventures will ultimately invest in it – remains to be seen.
But on one thing, Merijn ten Thije is clear:
“With the right structure and patience, we believe there’s enormous value to unlock – for investors and for society alike.”
