Matt Browning is the Head of Investment at Creative UK where he manages the Creative Growth Finance fund, a £35 million fund for creative sector SMEs. Victoria Poon, Interim Investment Officer at EIT Culture & Creativity, met Matt Browning for an interview to discuss the opportunities to invest in the Cultural and Creative Sectors and Industries. Creative UK is an investor on EIT Culture & Creativity’s EuroQuity community platform.
Creative UK is an organisation that empowers, promotes, connects, collaborates and invests into the creative sector of the UK. Through funds including their landmark offer, Creative Growth Finance, they have been able to support thousands of organisations and individuals, investing more than £50 million into creative businesses over the last 10 years. They also support the Creative Industries with capital, events and advocacy.
Victoria: What excites you most about investing in the creative sector?
“What really excites me about investing in the creative sector is that it’s a hugely enthusiastic and growing sector. There’s a tremendous amount of collaboration, innovation and a fantastic ability to tell stories. To elaborate a bit further, the creative audience has the ability to dream up innovative solutions. In our role as investor, we have been able to work with extremely hungry entrepreneurs who have been promoting innovation, storytelling and contributing significantly to our economy. We’ve supported a wide range of organisations that have mobilised not only the creative sector but also others.
One of our spotlight Creative Growth Finance investments was with a games company based in Brighton which created its own content for a very engaging simulated game. Interestingly, this game also serves a dual purpose; it aids in research and provides support to individuals dealing with anxiety, showcasing the versatility and the innovative potential the creative sector holds.
It was fantastic to see how creative solutions could be applied in healthcare and medication. On the storytelling front, we’ve been able to support businesses that have used multiple media to tell engaging and authentic stories. One of the organisations we recently supported in Bristol is ‘Wake the Tiger,’ which offers a completely unique, immersive experience using a lot of physical immersion to tell stories that cultivate a significant amount of culture across industries.
Regarding productivity, there are several businesses with substantial output for the creative economy. We’ve worked with businesses that have galvanized substantial work for both the UK and wider Europe, showcasing numerous stories from our culture and worldwide.”
What do you think is a common misconception about the creative sectors?
“A common misconception about the creative sectors is that they are ‘soft’ and that a lot of commercial outputs don’t align. We see that as completely untrue. The funds that we’ve supported have demonstrated that there’s a substantial amount of commercial art in them, which generates not just excellent profits but also a huge number of jobs in the UK.
The creative sector employs 2.3 million people and has grown in economic value 1.5 times faster than the average economy, debunking the notion that it lacks commercial viability. It is essential to appreciate the multifaceted impact the creative sector has, from fostering innovation and culture to contributing significantly to economic growth and employment.
Collaboration is pivotal in our approach, especially in aligning with domains such as the EIT Culture and Creativity which focus on circular economies and green initiatives. We strive to enhance connectivity between countries and find the creative sectors tremendously collaborative. We’ve witnessed synergy between media and games as well as various other sectors. Our endeavours span beyond investment; we conduct numerous programs to bolster investment readiness and mentorship.”
Could you tell us more about your initiatives aimed at fostering development within companies in the creative sector, especially considering the common misconceptions about the business models in this sector?
“The flagship mentorship initiative, the ‘Create Growth Programme,’ (on which we partner with Innovate UK) aids companies in refining their sophistication. There is a prevalent misconception regarding the lack of sophistication in business models within the creative industries. However, I’ve observed that these business models are not only dynamic and robust but are also extremely agile, adapting swiftly to economic pressures where more traditional business models have struggled.”
How has Creative UK Invest integrated with other support and investment initiatives, particularly with public authorities like Innovate UK and the North of Tyne Combined Authority?
“Our collaborations with Innovate UK and the North of Tyne Combined Authority are aimed at creating a significant impact in localised areas, providing them with not only investment but also grant and support funding. This allows us to cultivate and highlight the stories within those regions. It is crucial for us to not just invest and return funds, but to continue our portfolio collaboration with clients, providing hands-on relationships across the whole of Creative UK. Mobilising further investment from other funds and unlocking private matches are integral to infusing more income into the creative industries from non-traditional sources.”
Can you elaborate on how Creative UK collaborates with other entities, and how it contributes to long-term journeys of the companies you work with?
“Collaborative efforts are not only aimed at uniting industries but also at solving crises and unlocking opportunities. For instance, we’ve worked with the British Council to encourage partnerships and opportunities in the Western Balkan regions, fostering a melting pot of cultures and creating cultural narratives which are quintessential to the creative industries.
Moreover, collaboration is enriched by our partnerships with other investors and local authority partners. We don’t just invest or support companies; we assist them on their longer journey, connecting them with entities like BFI, Triodos Bank, and Innovate UK, and local partnerships like the Combined Authority, ensuring sustained support and growth. Our Creative Growth Finance fund, which is run in partnership with Triodos, the sustainable bank, is a fully commercial endeavour and exemplifies our commitment to amalgamating commercial and public interests for a holistic impact.”
So, the integration of cultures and collaboration with diverse entities is pivotal in your approach to promoting the creative sector?
“The amalgamation of diverse cultures and narratives is what makes the creative industry vibrant and enriching. It is rewarding to bring together different stories and showcase a cultural narrative. Our collaboration also extends to linking our clients with support schemes and other investors, which is crucial for the companies we work with, ensuring their growth and development in the longer term. We aim to be a constant support, connecting companies with relevant entities that can help them grow and realize their full potential.”
How do you envision these partnerships benefiting the creative sectors and enhancing connectivity within the industry?
“Collaborations and partnerships are pivotal. We aim to foster a network where insights, narratives, and innovations in the creative sector are shared and promoted. We are passionate about investing in the creative sector, recognising that it is often under-invested. Our organisation strives to mobilise not just investments, but also partnerships that understand and appreciate the value of the industries. We are keen on being a part of initiatives that give back, share stories, and promote dialogue within the sector, enhancing overall community building.”
About EIT Culture & Creativity
EIT Culture & Creativity is the ninth Innovation Community by the European Institute of Innovation and Technfology (EIT), a body of the European Union. It is designed to strengthen and transform Europe’s Cultural and Creative Sectors and Industries (CCSI) by connecting creatives and organisations to Europe’s largest innovation network. It takes a holistic and open approach to innovation – from tech to artistic driven innovations, from business to citizen driven – and reinforces the appreciation and anchoring of European values and identities. EIT Culture & Creativity will unlock latent value from a multitude of small CCSI stakeholders through technology transfer, improved cross-sectoral collaboration and their effective integration in production value networks. EIT Culture & Creativity will support technology and business innovation; artistic innovation and social innovation. It will also harness the unique position of the CCSI to facilitate the Triple Transitions in Europe – green, digital and social.
About The European Institute of Innovation and Technology (EIT)
The EIT is Europe’s largest innovation ecosystem bringing together close to 3,000 partners from top business, research and education organisations across Europe in over 80 innovation hubs. The EIT strengthens Europe’s ability to innovate by powering solutions to pressing global challenges and by nurturing entrepreneurial talent to create sustainable growth and skilled jobs in Europe. The EIT is an EU body and an integral part of Horizon Europe, the EU Framework Programme for Research and Innovation. The Institute supports dynamic pan-European partnerships, EIT Knowledge and Innovation Communities, composed of leading companies, research labs and universities each dedicated to solving a pressing global challenge, from climate change to health, to renewable energy.
