Media for Equity
Media for Equity is an English term that is used in Germany within the media industry and the venture capital sector for an investment model.
Media for Equity describes the participation of media companies in companies (especially start-ups ) using media services instead of money. Experience with the participation model exists in Europe and India. The model is similar to venture capital investments, with the crucial difference that advertising inventory - such as TV advertising times, billboards or magazine ads - is used instead of money as a kind of contribution in kind to the company.
As part of a media for equity investment, one or more media companies provide the company with advertising space or time for a marketing campaign . The company usually can not raise the necessary budget in return and pays in the form of shares in its own company. If the advertising campaign is successful and the company grows, these shares can increase in value. The media company can receive proceeds for its media service through a later sale of the shares. The use of media services for investment businesses does not damage the normal business of media companies with advertisers.
variants
There are two different models of media for equity. The first model is a direct investment by a media company in a company. Several media companies have made these investments since the 1990s, including Ströer Out-of-Home Media and the ProSiebenSat.1 television group with SevenVentures.
The second model is the independent Media for Equity fund. Several media companies jointly provide a fund with advertising inventory. This fund then invests this media service in companies. Alternative names are cross media funds because they offer companies different types of media as part of an integrated campaign - e. B. TV, radio, poster or magazine advertising - can provide. Such funds are, for example, Aggregate Media in Sweden , German Media Pool in Germany and Leverate Media in Germany.
Outside of Europe , Media for Equity is also practiced intensively in India by the Times Group and its investment arm Brand Capital . In India as in Europe, Media for Equity fills a gap in the financing of growth companies between so-called early angel financing and later late stage investments .
Individual evidence
- ↑ a b Air for shares: Could an unusual venture-capital model be taking off? . The Economist. Retrieved April 7, 2012.
- ↑ GMPVC: Media-for-Equity doesn't always have to be internet . etailment - trends and analyzes in e-commerce. Archived from the original on January 23, 2013. Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. Retrieved January 23, 2013.
- ↑ German Media Pool: N24, Regiocast and Wall support start-ups . W&V - Advertising and Selling. Retrieved January 23, 2013.
- ^ New German initiative pools ad media to take stakes in startups . TechCrunch. Retrieved September 28, 2011.
- ↑ German Media Pool: N24, Regiocast and Wall support start-ups with media services . Horizont.net. Retrieved January 23, 2013.
- ↑ SevenVentures ( Memento of the original from November 27, 2012 in the Internet Archive ) Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ Aggregate Media ( Memento of the original from February 18, 2013 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ GMPVC German Media Pool
- ↑ twago Investment Tops Off Great First Year for GMPVC . SiliconAllee. Archived from the original on July 2, 2012. Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. Retrieved June 29, 2012.
- ↑ Leverate Media
- ^ Brand Capital
