FAQs

Media for equity funds primarily provide access to media and advertising channels in exchange for equity in a company. However, some media for equity funds may also offer additional services including:

1. Marketing and advertising expertise: Media for equity funds may have experienced marketing and advertising professionals on their team who can provide guidance and advice to the companies they invest in.
2. Networking opportunities: Media for equity funds may provide opportunities for the companies they invest in to network with other businesses, potential customers, or investors.
3. Market research: Media for equity funds may conduct market research to help the companies they invest in better understand their target audience and develop more effective marketing strategies.
4. Business development support: Media for equity funds may offer support with business development activities, such as identifying potential partnerships or acquisition opportunities.
5. Financial and strategic advice: Media for equity funds may provide financial and strategic advice to the companies they invest in to help them grow and achieve their business goals. Some funds provide financial support towards funding the creative costs whilst others provide matched funding opportunities (non-dilutive funding).

These services provided by media for equity funds can vary widely depending on the fund, geography, and the company they are investing in.

In the last two decades over 1000 companies have raised media capita. The best candidates for media capital investments are typically startups in industries where advertising plays a significant role in customer acquisition and revenue generation, such as e-commerce, fintech, digital health, and other consumer-facing sectors.

Based on our latest research conducted at mediaforgrowth analysing 400 investments, most candidates operate on a B2C model while 31% have a B2B or a B2B2C model. 65% of companies are active whilst 30% exited (IPO / M&A).

Some notable examples of companies that have raised media for equity investments include Airbnb, Coursera, Uber, what3words, and Zalando among others.

No, media for equity is a complementary or alternative model to venture capital. Media for equity funds offer startups a unique way to access significant advertising inventory and expertise that they may not be able to afford otherwise. At the same time, VC firms can allocate capital that they can use to fund their growth and other operational costs. Many founders choose to raise a combination of both.

Investing in an independent media for equity fund can offer several benefits for media companies compared to doing it themselves:

Diversification: Investing in a media for equity fund allows media companies to diversify their investment portfolio, spreading their risk across a range of startups in different industries and markets. This can provide a level of risk mitigation that would be difficult to achieve by investing in individual startups on their own.

Expertise: Independent media for equity funds are typically managed by experienced professionals with a deep understanding of the media and venture capital landscapes. They have the knowledge and expertise needed to identify promising investment opportunities and manage the risks involved.

Time-saving: Getting the legal structure and fund mechanics right (even when investing off the balance sheet) takes significant time. Researching the market and performing due diligence adds up to even more time. By investing in a media for equity fund, media companies can rely on fund managers to handle these tasks and provide them with a curated selection of investment opportunities.

Access: Media for equity funds often have access to a broader range of startups than individual media companies would on their own. This allows media companies to invest in a more diverse set of start-ups, increasing their chances of finding successful investments.

Overall, investing in an independent media for equity fund can give media companies access to a diverse range of start-ups, while also taking advantage of the expertise and resources of the fund managers.

Raising a media capital round means that you’re investing in brand advertising and the future growth of your brand. Using mass-media channels such as TV alongside your digital channels provides multiple benefits including:

• Amplify brand awareness nationally and internationally

• Build new category creation establishing trust and credibility

• Enhance the performance and ROI of other digital channels

• Strengthen pricing power and lower acquisition costs

• Boost long-term brand growth and financial performance

All these benefits come with the opportunity to leverage equity for business growth optimizing marketing spending and providing a higher capital runway.

The MFG Program is a specialized media program for growth-stage consumer brandsto amplify reach and optimize their marketing costs using the power of media capital investments

Media capital also known as media for equity is a financing option that allows founders to accelerate their growth through significant advertising in exchange for an equity stake in the business.

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