Scaleup Mediafund, an Australian fund known for its successful exit rate exceeding venture capital standards, has announced its first three investments for its latest $15 million media-for-equity round. The capital will be used to provide discounted inventory in advertising and marketing to drive awareness for consumer-facing startups.
The first beneficiaries of this round include fast-growing vitamins delivery company Vitable, funeral industry disruptor Bare, and Hawkes Brewing. Since its inception in 2017, Scaleup Mediafund has received $45 million in investments from leading media groups such as News Corp, NOVA Entertainment, Foxtel, Network Ten, and REA Group.
Despite financial struggles, Network Ten, owned by Paramount Global, is not participating in the third series. However, the fund has secured outdoor advertising company oOh!media, expanding its reach to over 35,000 locations.
Investment principal Michael Lamont emphasizes the fund’s role in helping new brands build their presence, attract consumers, and scale effectively. The media-for-equity model has a storied history, with Scaleup Mediafund being the only dedicated fund of its kind in the country.
Five of the company’s initial 15 investments have already achieved milestones like acquisition or IPO, with more breakthroughs on the horizon. Lamont highlights success stories like Better Caring (now Mable) and Billy, showcasing the fund’s ability to support startups in their growth journey.
With a focus on derisking marketing spend and building brand presence, Scaleup Mediafund continues to back its portfolio companies with more marketing capital in later rounds. Lamont remains optimistic about the role of brand advertising and paid media in building successful businesses in Australia.