Media for Equity – A Scaling Option for Start-ups.

Startup Stage, October 10th, 16h40

Sebastian Erasmus, Managing Director & Co-Founder, Leverate Media GmbH

Media for Equity – A Scaling Option for Start-ups

Sebastian Erasmus

Leverate Media GmbHManaging Director & Co-Founder

ContactSchivelbeiner Str. 40D-10439 Berlin

serasmus@leverate.de+49 175 7801128

What is Media for Equity (M4E)?

Media Owners

Media

M4E Provider

Media Equity

Company

Media for Equity – Born in Sweden, Raised in Germany

Media for Equity Providers

SevenVentures GmbH (Germany)

© 2013 Leverate Media GmbH

Media for Equity Providers

German Media Pool VC GmbH (Germany)

© 2013 Leverate Media GmbH

Media for Equity ProvidersAggregate AB (Sweden)

© 2013 Leverate Media GmbH

Media for Equity – Focusing NeedsMedia Owners, Start-ups and Venture Capital Firms

Media Owners

Venture Capital Funds

Start-Ups

Media Asset Monetization!?

Big Shots!?

Growth!?

Flexible Equity deals as alternative monetization opportunities

Capitalization of media within 6-24 months

Flexible solutions for most current needs

Target SituationCurrent Situation

Media OwnersAdvertisers shift budgets to emerging markets – the importance of alternative and flexible media monetization will increase even further.

Huge amounts of “unsold” media inventory – competition is getting even harder

Media budget shifts into new media channels & emerging markets

Increasing dependency on agencies and major customers

Flexible monetization channel for media owners

Absolute capitalization opportunity for “unused” media

Decreasing dependencies on single sales channels and media agencies – acquisition of new customer for media owners and agencies

Media for Equity

Start-UpsAvailability of venture capital in Germany is low – but start-ups need remarkable media budgets to scale their business models to the next step of growth.

Provides powerful cross media campaigns for high-potential start-ups

Manages, consults and optimizes each campaign

Offers flexible Media for Equity deals individually applied on the needs of each target

Media for EquityTarget SituationCurrent Situation

Start-ups (Series A & B) are looking for capital to scale their businesses

Venture Capital firms are shy on scaling budgets for start-ups

Start-ups need capital to improve their infrastructure and scale their business with media at the same time

Reach as key driver for absolute success for online start-ups

Flexible amounts of scaling media have to be available for high-potential start-ups

Absolutely optimized media campaigns, continuously tracked and managed in return for start-up equity

Venture Capital FirmsLack of media industry expertise open up opportunities to scale start-ups with media for equity deals.

Creating sustainable value for all parties involved

Minimizing the risk of media inefficiency

“Call option” for VCs to acquire Leverate’s shares of the co-invested start-up within 4 months after start of media delivery

Media for EquityTarget SituationCurrent Situation

VCs do not want to invest in big marketing campaigns to scale start-ups

Bad experiences with poor results of marketing campaigns made VCs more carefully

Start-ups face problems to receive significant scaling budgets

Absolute leverage and acceleration of financial investments

Flexible scaling options for VCs to boost growth of portfolio start-ups

Regular and frequent KPI reports

M4E – Don’t waste your equity! Choose the right approach!.

Media Strategy Workshop Documentation

Health Check Assessments & Documentations incl. As-Is Situation, To-Be State

Health Check Gap Reports incl. Action Plan

Pre-Advisory Presentation 1:1 Advisory

Media Strategy Workshop Documentation

Health Check Assessments & Documentations incl. As-Is Situation, To-Be State

Health Check Gap Reports incl. Action Plan

Pre-Advisory Presentation 1:1 Advisory

Media Selection Assessment and Proposal

Due Diligence Report and Documentation

Tax & Legal Reports and Documentation

Contract Proposal Media Arrangement and

Reservation

Media Selection Assessment and Proposal

Due Diligence Report and Documentation

Tax & Legal Reports and Documentation

Contract Proposal Media Arrangement and

Reservation

Holistic and detailed Media Plan (all media types)

Execution of Media Plan incl. Media Buying, (Technical) Campaign Set-Up and Go-Live

Media Efficiency & Sales Performance Analysis

Campaign Summary incl. Recommendations, Actions Points and Optimization Execution

Legal and Tax Duties Report & Documentation

Holistic and detailed Media Plan (all media types)

Execution of Media Plan incl. Media Buying, (Technical) Campaign Set-Up and Go-Live

Media Efficiency & Sales Performance Analysis

Campaign Summary incl. Recommendations, Actions Points and Optimization Execution

Legal and Tax Duties Report & Documentation

AlternativeMedia Deal

Media Pre-Advisory(Start-Ups) Delivery

RESU

LTS

ACTI

VITI

ES

MEDIA PRE-ADVISORY:Strategy WorkshopHealth ChecksPersonal Advisory

MEDIA OPERATIONS:Media PlanningMedia Buying & ExecutionCampaign ManagementMedia Tracking, Reporting & Optimization

DEALING:Media SelectionDue DiligenceTax & Legal SolutionsContractingMedia Reservation

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© 2013 Leverate Media GmbH

Media for Equity – A Scaling Option for Start-ups.

Sebastian Erasmus, Leverate Media GmbH, serasmus@leverate.de