In our series Inside the MFG Fundraising Programme, we explore the essential elements of the programme to help founders decide if it’s the right fit for your brand.
This programme is designed to help founders secure media capital to fund their marketing and branding efforts.
This article covers the top 7 questions founders ask about the MFG Fundraising Programme before applying. You might also be interested in:
Do I need a senior CMO to join the MFG programme?
No, our programme is specifically designed to empower those without a marketing background to successfully launch their first TV campaign, craft a detailed marketing plan, and establish a budget. While bringing a marketing manager along can be beneficial, it's not a requirement. We delve into strategic marketing planning, such as constructing a media plan for 2025 and determining the necessary advertising budget. This is particularly valuable for founders who might not have a seasoned CMO on their team, providing critical insights and tools to navigate marketing strategies effectively and efficiently.
By joining the programme, do I have to accept a media for equity offer?
Joining our programme doesn't lock you into any immediate media fundraising commitments. We've seen many of our alumni, including those from our latest cohorts, continue their fundraising efforts with the aim to conclude deals in the latter half of 2024. Our programme offers a flexible structure that supports your business's growth and operational enhancement plans without the stress of having to make immediate fundraising decisions.
I’m fundraising and looking to close the round before the programme starts. Is it still worth joining?
Absolutely. Engaging with media for equity deals can be a strategic component of your broader financing strategy, whether as part of a larger funding round or as a standalone bridge financing option through convertible loan notes (CLNs). Offers arising from our programme aren't restricted by time, meaning you can incorporate them into your subsequent funding rounds at a time that suits your strategy best.
I’m not planning to use mass-media channels (TV, OOH) until Q1 2025. Is it still worth joining?
Our programme is a great way to prep early, giving you the tools and insights to hit the ground running when you're ready. Our 2023 alumni, who are still in the fundraising phase targeting a close in H2 2024, exemplify our commitment to supporting startups at various stages of their media planning and execution journey.
Why should I join the MFG programme instead of working directly with a media partner?
After completing a seed round and starting investing heavily in digital marketing, most startups hit a performance plateau with Meta andGoogle Ads, with costs reach to 30-40% of their revenue, prompting startups to explore new mass-media channels like TV, Radio, and OOH.
Traditional Path
- You open a new round, spending months convincing VCs to invest so that 50% of your capital goes straight to advertising.
- After months of fundraising and pitching to 100+ investors, you finally close the round. Probably the most expensive cash you ever raised.
- You heard TV worked for other brands in your sector but don’t quite know where to start. A fellow founder introduces you to a media agency.
- You sign them as partners and discuss your marketing budget. You land on a £2m plan. The agency charges you a 10% service fee (£200,000).
MFG Path
- Media Capital Investors cover £1m marketing costs in exchange for equity, providing you with the flexibility to either raise less or the same amount of funding and allocate capital to other costs to accelerate growth.
- VCs feel more comfortable seeing a media group on your cap table, providing not only inventory but expertise. You close the round within a few months.
- Signing a media agency becomes optional. The MFG Programme also equips you with the right knowledge and experts to execute your first mass-media campaign.
- You save months of pitching to investors and up to £1.2m in cash by working directly with MFG and media partners.
Do I still need to raise cash if I partner with a media for equity fund? Why?
Typically, yes. The involvement of a lead investor is often a prerequisite for media companies to extend media credits. Besides, maintaining a healthy cash runway post-TV campaign is crucial for sustaining momentum, with continued investment in digital marketing channels leveraging TV's amplification effect. The programme covers the entire spectrum of costs associated with media for equity deals, including creative, regulatory fees, VAT, and legal expenses. We'll walk you through managing these expenses without breaking a sweat.
The MFG Fundraising Programme is a strategic opportunity to connect with leading investors, receive expert guidance on optimising your marketing strategy, and raise media capital effectively. Even if you don’t make it into the programme, MFG offers introductions to 30+ media partners to explore investment opportunities across Europe, the UK, and the US.Apply today to join our next MFG cohort.