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The aim of this report is to collect useful information and opinion from media for growth funds, VCs and founders who have raised such funding and present it in a clear and helpful format. Overall we analysed the data of 382 unique investments where companies were founded in 2000 or later.
We also sought to identify and demystify the most widely held beliefs holding back the ecosystem.
This first global edition on The State of Media for Growth Funding sheds light on the following:
Media for growth funding is a relatively new financing option that provides high-growth startups with media services and advertising such as television, print, radio, and online, in return for equity or revenue share. Ten years ago, there were fewer than a handful. Today, there are more than 30 specialised funds.
Download the report to learn more about the evolution of media for growth funding and some of the factors that are fuelling the growth of this financing option.
Aggregate Media in Sweden was the pioneer of the media for growth model in Europe, followed by Seven Ventures, Ströer’s Media Ventures, and German Media Pool in Germany. On the other side of the globe, The Times Group, the largest media group in India, has been accelerating start-ups using advertising since 2005. Their portfolio amounts to over 1,000 deals.
Read more about new emerging funds operating in Southeast Asia, LATAM and North America in the report.
In the last two decades, over 1,000 start-ups raised media for growth funding. The benefits of this type of model are customer growth, increased brand awareness, customer data, and guidance from media groups, all without having to spend cash.
Timing is everything, and the amount of time it takes startups to raise money is crucial. Media for growth funds deliver immense value to start-ups because of their ability to provide not only advertising but know-how and talent, and to attract investors - resulting in higher rounds of funding.
According to CrunchBase data, the average successfully acquired U.S. start-up has raised $29.4 million and sold for $155.5 million. Based on our analysis, there are 87 start-ups that formerly raised media for growth funding and were acquired. On average these companies raised $83 million pre-acquisition.
This report is intended for the start-up and investment community and aims to help especially founders, and venture capitalists to gain insights to this financing model.