In a market filled with rapid change and uncertainty, D2C startups and media groups have started looking for new opportunities to help drive new ad spend on TV and grow revenue. This paper explores the evolution of Media for Equity as a driver for revenue growth and diversification through the lenses of European startups and broadcasters, the challenges to successful implementation, and the best practices to overcom them.
Compared to early-stage funding rounds, this model presents less risk and higher chancesfor significant returns.Media for equity model is almost always used between conventionalrounds of venture financing or alongside cash investments to fund high-growth startups.
Alot of mistakes that media owners make are that they think it's away to make a quick revenue, they think they can maybe do it in-house with existing teams. It's better to partner with externalorganisations that understand the startup ecosystem.
Implementation of a Media for Equity deal doesn't resume only to advertising. It also means mentorship, access to know-how, and if done right, higher market share.
B2C startups are the best candidates for Media for Equity deals. The majority of the startups and scaleups that have done a Media for Equity deal are based on a B2C (business to customer) business model.
Media for Equity, as an investment model where media resources are traded for equities and capital between Media Groups, Media for Equity investment pool and companies, is quite popular in Western Europe in countries such as Sweden, Germany, Italy, United Kingdoms, Spain, Belgium.