What is private investment?
On this page
What does private investment mean?
Private investment is support from the private sector. It includes financial and in-kind support, such as goods, services or resources. It can come from:
- individuals or families
- trusts and foundations
- businesses
- partners and investors.
Other terms for private investment
You may know it as private sector support. Terms such as fundraising, development, philanthropy and partnerships are also commonly used across the arts and cultural sector when discussing this kind of work.
Why is private investment important?
Australian artists or arts and cultural organisations rely on a mix of funding sources to sustain their creative work.
Private investment is one of the 3 main sources of support.
- Earned income: money made through sales and services, such as ticket or art sales, merchandise, workshop or performance fees, venue hire and other commercial activities.
- Public investment: funding, grants or other support from local, state and territory or federal levels of government.
- Private investment: funding or in-kind support from the private sector.
The benefits of private investment
Private investment sustains and grows our arts and cultural sector. But there are other benefits for you and your creative work.
Helps you build financial resilience
Private investment gives you more sources of income. This helps you cope better if funding is uncertain. It means you can plan ahead with confidence.
Gives you creative flexibility
Private investment is usually more flexible than public funding or grants. Often you can use private support however you need, giving you the freedom to use it on what’s most important to you now, respond to opportunities and take creative risks.
Connects you to new audiences and supporters
Private investment is built on relationships. Your supporters believe in the value and impact of what you do. Often they become champions of your work, helping to raise your profile and connect you to new audiences and potential supporters.
Helps you make a social and cultural impact
Private investment can help more people access and participate in arts and cultural experiences. This includes people who may otherwise face barriers to taking part. It can connect communities and contribute to positive health, wellbeing and education outcomes. For example, it might support a community music festival, a theatre production touring to schools or accessible art classes for people with disability.
Helps you clarify what you do
Asking for private investment forces you to get clear on your work – your vision, purpose and impact. It helps focus your creative intent so you can confidently explain it to others.
Private investment takes time and effort
There’s more to private investment than asking for money or resources. It’s about:
- building relationships
- sharing visions
- creating value with your supporters
- encouraging investment in the cultural, social, and economic impact of arts and culture.
Securing private investment takes planning, resources and a clear approach. Many people across the sector work to secure private investment, including:
- individual artists and producers
- individuals or teams within organisations, often called ‘development’ roles
- executive leaders
- board members.
This means you need to be strategic about private investment to make it work for you.
