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.↗
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.