Financing new creative enterprise through blockchain technology: Opportunities and policy implications

Abstract

Blockchain technology represents an emerging source of venture capital crowdfunding for creative ventures, specifically in the music industry. Although music streaming is often portrayed as a success story, the internet has in fact been something of a false dawn for the recorded music industry-particularly for emerging musicians. New music ventures might obtain alternative entrepreneurial finance through token sales or Initial Coin Offerings. Policymakers can play a role in developing this form of seed finance for the creative industries and beyond.

Antecedents of blockchain adoption: An integrative framework

“…The fintech sector has long been used to highlight specific examples of how blockchain can be used effectively to leverage the benefits of the technology to create new organizational structures and business models (O'Dair & Owen, 2019; Scott, Loonam, & Kumar, 2017). Potential applications of blockchain technology cover a wide range of different scenarios.…”

“…Notable business use cases of smart contracts across industries include knowing your customer (banking), escrow replacement (real estate), digital identity (academia), insurance policies execution (insurance), digital rights (music), and land rights (legal). O'Dair and Owen (2019) provide a detailed example of how music artists can use blockchain as a means of venture capital crowdfunding.…”

Modeling of Creative Industry Based on Community Participation in Bali Regency

“…The conclusions that can be formulated from the study are (1) the characteristics of creative participation-based industry products in the province of Bali categorized as imitation products, developing in certain regions, short-term consumer utilities, medium-quality mass products, highquality ordered products for long processing time; (2) the creative participation model based on community participation has a strong relationship model with a value of 0.66 (66%) (rounding). The risk challenges of creative participation-based industry products related to the development of new ideas, world market share, create a value chain strategy with new technology, in order to contribute to regional and national economic growth and elasticity growth 31% [20]- [22]. Other risk challenges are the availability of product design, the speed of innovation of human resources, skills with new technology, access to market demand, product quality, creating customer satisfaction that is culturally different, effective communication, and a source of income as a living cost.…”

Blockchain and other innovations in entrepreneurial finance: Implications for future policy

“…They address the financing needs of innovative SMEs in mature and emerging markets (notably in respect of VC developments in Nigeria (Ekanem, Owen, & Cardoso, ) and Estonia (Owen & Mason, ), and in developing early stage financing theory for innovative enterprises (Owen, Deakins, & Savic, ), and those with different forms of ownership, found in Scott and Hussain's examination of owner‐manager intersectionality, focusing on gender, ethnicity and social class, and Lyon and Owen's survey of social enterprise. The papers also examine new innovative forms of finance, notably in terms of new approaches to using Blockchain technology in the music and creative industries sector (O'Dair & Owen, ), crowdfunding in the micro‐brewing sector (Mac an Bhaird et al, ), new forms of social enterprise, social impact finance (Lyon & Owen, ), and new approaches to VC and public–private co‐investment in equity finance in mature (Owen, Mac an Bhaird, & North, ) and emerging markets, including smaller, more peripheral economies (Ekanem et al, ; Owen & Mason, ).…”

“…In further detail, our lead paper (O'Dair & Owen, ) explores arguably the most cutting‐edge transformation in twenty‐first century fintech. Blockchains enable online real time digitally recorded P2P transactions which are currently immutable and secure, at least until the advent of Quantum computing (MIT, ).…”