Media for Equity has been proven to be a successful investment model, offering new emerging companies and startups media inventory in exchange for equities or capital. The media inventory is later used for advertising, especially TV advertising which brings numerous benefits to the startup, including a brand awareness that is so necessary at this stage.↗
Media for Equity investments require an exchange of media resources for equity or capital. The model is being touted as an alternative to the classic VC (Venture Capital) investment and it has gained popularity over the last 20 years in Western and Northern European countries.↗
In the past 20 years, Media for Equity deals have helped European startups become unicorns on their own rights and establish themselves as leaders in their respective fields. But what is Media for Equity and why should Media Groups consider offering Media for Equity deals to companies?↗
Some corporations, including Google, Cisco or Axa have successfully developed their own “venture studios”, launching numerous new businesses over the course of several years. However, most of these ventures once validated are spun-out and not developed internally. Netflix spun out its “Netflix Box” division, which became Roku -- a company that now has a $4 billion-plus market cap. Fog Creek Software (now Glitch) spun out Trello and Stack Overflow. Cisco spun out -- and subsequently acquired -- three different startups from the same group of founders. However many more had tried but failed to deliver the expected results and had their units closed.↗
In this article, we’ll explore the first phase of the venture building process - a 2-3 months venture validation sprint covering the building blocks of start-up creation: idea generation, validation and pre-launch execution. This process is designed to quickly identify, validate and test new concepts and de-risk the chances of failure when scaling the business further.↗
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. Aside from Russia and Poland (whose Media for Equity investment fund has gone defunct meanwhile), there are virtually no Media for Equity investment funds in Eastern Europe. Read this article to learn more about the untapped potential of media for equity.↗
An untapped investment model for broadcasters and startups in Eastern Europe
David Timis is a keynote speaker focused on the impact that AI will have on the future of work. He has Master’s Degrees in Business Administration and Management and Public Policy, and work experience in the private, public and NGO sectors. He has guest lectured at renowned universities, such as Cambridge University in the UK and the College of Europe, and delivered presentations for a diverse range of clients, including Google, the European Commission, and AIESEC.Read Show notes
Max is an entrepreneur turned investor, based in Sofia, Bulgaria. After co-founding and exiting an online legal services company in The Netherlands, Max was on the founding team of Eleven Startup Accelerator in Bulgaria, after which he turned to angel and private investments by co-founding an angel investment syndicate, called Teres Angels and he also pioneered several leading ecosystem initiatives like EIR Tribe, TRACTIONCamp, and SummitSummit. Currently he is a managing partner at Vitosha Venture Partners.Read Show notes
Louis Havriliuc is the founder and owner of Simbound, a digital marketing learning platform. While on the lookout for ethically designed technology, he has pioneered a simulation method for digital marketers to hone their skills.Read Show notes
Recent headlines about large valuations and big funding rounds hide the fact that a huge number of venture-backed startups fail. 34% of startups fail because they lack a product-market fit whilst a further 22% do so because of little understanding of marketing strategies and how the media works.↗
We knew that the tech startup ecosystem is lacking sales departments inside the fresh-founded companies. Together with Grai we defined a venture structure, services, and technology that proved to be what the market needs. With Grai's experience, venture building systems, and processes we launched the new business in 6 months.
When deciding who to work with we met two camps: people who said they could do everything we said we wanted, and then Grai, who came with a real process and a methodology about how to achieve what we wanted. We were faced with the challenge of turning out tech conference of 1000+ people into a hybrid event and increase sales. – and Grai’s digital strategy approach was the perfect match.