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Scaleup Mediafund has launched its fourth media-for-equity fund with $25 million in advertising capacity, backed by all five of its existing media partners including News Corp Australia, Foxtel, oOh!media and REA Group.
The new fund represents a significant step up from the $15 million third fund, which has been fully deployed across six investments including comparison platform Finder, ASX-listed life insurer NobleOak Life (ASX: NOL), non-alcoholic drinks brand Naked Life, property settlement platform Settle Easy, Hawkes Brewing, and funeral disruptor Bare Funerals.
Since launching in 2017, Scaleup's media investor partners have committed more than $45 million in advertising and marketing inventory, backing a portfolio of more than 20 companies.
Five of those portfolio companies have reached acquisition or IPO.
The model works by investing discounted media inventory - typically $1 million to $2 million worth of advertising across television, radio, out-of-home, print and digital channels - in exchange for equity in high-growth Australian businesses.
Rather than deploying cash, the fund gives emerging brands access to large-scale media campaigns they would otherwise be unable to afford.
“We back founders with premium advertising space, enabling them to reach millions of Australians and scale without draining cash reserves," says Scaleup Mediafund investment principal Michael Lamont.
"The launch of our $25 million fourth fund is a strong vote of confidence in the media-for-equity model.
"Since inception, we have demonstrated that giving early-stage companies access to premium advertising inventory is a powerful catalyst for sustainable growth.
"Many emerging consumer brands hit a wall. They need mass market awareness to grow, but cannot afford the upfront cash required for major media campaigns. Scaleup bridges that gap."
The fund targets companies at a growth inflection point where brand awareness is the primary barrier to scaling.
“With Scaleup Fund 4 now active, we are looking for the next generation of ambitious Australian startups," says Lamont.
"We want to hear from founders with a strong consumer offering, demonstrated product-market fit, and readiness to scale.
“With the combined reach of News Corp Australia, Foxtel, NOVA Entertainment, oOh!media and REA Group, we have the media firepower to help make brands household names."
Scaleup Mediafund is modelled on European media-for-equity funds that have operated in Germany, Scandinavia and the United Kingdom for more than a decade.
The Australian fund remains the only dedicated media-for-equity vehicle in the local market, occupying a niche between traditional venture capital and strategic media partnerships.
Scaleup Mediafund says its team is actively reviewing opportunities across consumer, fintech, health and property technology sectors for the latest round.
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