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Naked Life Spirits, a low- and non-alcoholic cocktail company that undertook one of the largest crowdsourced funding (CSF) raises of FY24, will dilute some of its shares in exchange for advertising inventory through a media-for-equity deal with Scaleup Mediafund.
In May the fund announced the first three investments for a new $15 million round, allowing investees Vitable, Bare and Hawkes Brewing access to discounted ad and marketing rates with partners including oOh!media (ASX: OML), REA Group (ASX: REA), News Corp (ASX: NWS), NOVA Entertainment, and Foxtel.
Scaleup Mediafund has today announced a further two additions to the fund, backing both Naked Life and end-to-end property conveyancing platform Settle Easy, both headquartered in Melbourne.
"Scaleup Mediafund’s unique proposition to support building brands and driving growth aligns perfectly with our mission to change the face of drinking in Australia," says Naked Life founder and CEO David Andrew, whose company raised $3 million on CSF platform Birchal in July 2023, setting a record at the time for Australian crowdfunding in the food and beverage sector.
"The fund provides us with a valuable opportunity to expand our awareness and reach through premium channels - helping to increase penetration and demonstrate that life’s moments can be celebrated with both alcoholic and non-alc drinks - the choice is yours."
The news also follows a recent deal for Naked Life with American-Canadian brewing giant Molson Coors to take the brand to the US.
Settle Easy co-founder and CEO Sam Almaliki says the latest investment will help cement the company's position as a leading provider of settlement services for property buyers and sellers.
"Since our launch in 2020, we’ve expanded nationally to become one of the country’s fastest and most efficient conveyancing providers," Almaliki says.
"With Scaleup Mediafund’s investment, we can continue to build the brand, extend our services to more Australians, and achieve our growth plans."
Scaleup Mediafund's investment principal Michael Lamont says the two latest investments highlight the fund’s distinctive structure to support founders’ growth strategies.
"Scaleup Mediafund continues to offer consumer-facing brands affordable access to high-impact branding and advertising opportunities in exchange for equity. Since our inception in 2017, we’ve consistently demonstrated how we help founders build their brand, attract consumers, scale effectively, and accelerate growth," Lamont explains.
"We’ve now completed five deals from our third funding round, which showcases that more founders are proactively seeking media-for-equity support for their ambitious growth plans. They’re recognising the critical role that marketing plays in driving business expansion."
The fund, which has also backed the likes of Billy, Mad Paws (ASX: MPA), Bricklet, Hey You, and Mable, notes that a recent investee that declined to be named was able to lift its conversion rate by 200 per cent thanks to the impact of "premium inventory".
Similarly, Hawkes Brewing’s advertising campaign helped the company maintain its market position in a challenging retail environment and is now embarking on its second Scaleup Mediafund campaign to support further expansion of its retail distribution.
Since its launch, Scaleup Mediafund’s investors have committed more than $45 million in advertising and marketing inventory to support Australia’s start-up sector, backing the growth of 19 businesses, five of which have reached the significant milestones, such as an acquisition or initial public offering (IPO).
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