Square media for equity deals with business as usual

The biggest challenge with enabling media inventory in exchange for equity is balancing business-as-usual (BAU). TV advertising is measured on KPIs and short-term financial targets – a CEO of a TV station or a TV show producer would always prioritise cash over outputs they cannot see. Squaring this requires a fundamental shift in the way media holdings are designed. A potential solution is to start at the top – where the C-suite looks after the core business and the investment unit is governed separately.

Align key stakeholders on a strategy moving forward

Transforming a business model requires a communication plan to engage internal and external stakeholders, demonstrate buy-in and position the organisation at the forefront of Innovation.

Be clear if you want to align future investments with the company's financial strategy or aim for early wins that accelerate your rate of learning.

Consider introducing an internal process and a selection committee to help enable fast decision-making, meaning that a startup investment can be approved within days, not weeks.

Build a strong ecosystem network

Promising startups attract investors quickly and are less likely to cast a wide net to attract funding.

As we’ve shown in our latest report, the right type of company for this model has already secured an initial round of funding and is looking to use advertising as a “bridge round”, or complimentary to another fundraising round.

Communication with stakeholders and partnerships with aggregated media funds and startup experts are essential to identify the best startup opportunities and increasing return on investment.