Media-for-Equity deals in Europe March 2017

Media-for-Equity (MfE) rounds in Europe: an instrument that’s mainly been used in Germany, Spain, France Media-for-Equity in Europe (nr. of rounds)

Media-for-Equity by country (number of rounds)

36 21 31 28

28 16

11 10

10

8

8 7 6

5

7

5 4 3 2

2

4 3

2 1

– 2012

2013

2014

2015

2016

Europe

Source: Dealroom.co

'12 '13 '14 '15 '16 Germany

–

'12 '13 '14 '15 '16 Spain

'12 '13 '14 '15 '16 France

1 –

'12 '13 '14 '15 '16 Sweden

1

– '12 '13 '14 '15 '16 Rest of Europe

2

Selected active investors in European Media-for-Equity rounds. Many of them tied to TV network Fund name

Amount

MfE Rounds

Companies

ProSiebenSat.1 Accelerator

€ 27M

39

Jim Drave, Cashboard, Clark, Fairr.de, Foodist, Mossify, Meine SpielzeugKiste, Valendo GmbH, 123Makler, SpringTab, tripRebel, KUKUMI, kaputt.de, Layoutfabrik, Asanayoga, Pablo & Paul, Jaimie Jacobs, HelloCare, Eurosender, Ekoio, Myonbelle GmbH, SecureBeam, Little Postman, Media4Care, Flairelle, Veeplay, Photocircle, MyRadioDay, Kinematics GmbH, Tvib, Videostream360, EYEGLASS24, Jurato, get2play, Talentry GmbH, Tickethelden, Dreama.tv, Ampido

GMPVC - German Media Pool

€ 90M

19

JobToday, Book A Tiger, About You, Clark, Twago, Geschenke.de, Marley Spoon, Urbanara, ePetWorld, Danato, Momox, JustBook, Firma.de, Tab Ticketbroker, MyBestBrands, Toptarif, Pauldirekt, Medikompass, 9flats

€ 7M

18

Centralway, About You, Ayondo, Jawbone, PippaJean, Fineartmultiple, JutFab, asgoodasnew, Kiveda, Zalando, Shopkick, HolidayInsider, Lieferando, Lottohelden, Mawaku, Tirendo, BabyMarkt, Kuchen Quelle

Aggregate Media

€ 12M

12

Vakanta, Storegate, Billogram, Readly, Lastgrab, Teknikdelar, Fello, Calmino Group, Larma Gruppen, Plick, Nattpasset,MrGreen

5M Ventures

€ 13M

8

Jobaroundme, Youbox, e-loue, Easy cartouche, Albert Learning, Sefaireaider, Wingit, CornerJob

Atresmedia

€ 32M

8

Groupalia, Fintonic, PromoFarma, Restaurantes.com, Hundredrooms, Job Today, Fever, Wallapop

Ad4Ventures

€ 22M

7

PrivateGriffe, La nevera roja, Fever, Deporvillage, Springlane, CornerJob, Fazland, Playspace

Media Digital Ventures

€ 8M

6

Hundredrooms, Groopify, Deliberry, Waynabox, Washrocks

L'Express Ventures

€ 0M

5

MorningCroissant, Kitchen Trotter, Immoinverse, Chicplace, Short Edition

Mediaset

€ 20M

5

La nevera roja, Deporvillage, Springlane, CornerJob, Deporvillage

Channel 4

€ 35M

4

Billogram, Readly, Deezer, Eve Mattress

TF1

€ 12M

3

Sejourning, Sefaireaider, CornerJob

RTL Group

€ 9M

3

AlloVoisins, CornerJob, Solvo (Heilzaam), likely many more via subsidiaries

WeltN24

€ 5M

2

Clark, Savedo

SevenVentures

Source: Dealroom.co Note: amount often includes mix of media and cash for equity.

3

With 31 rounds in 2016, Media-for-Equity continues to be an actively used instrument for scaling European companies € 6M Lottohelden

Centralway

ePetworld

€ 4M

Leetchi

Youboox

FamiHero City

€ 3M

Jobaroundme

Sejourning

€ 10M

Kiveda

Tab Ticketbroker

ChicPlace (€ 0.3M)

Short Edition

€ 3M

€ 10M

BabyMarkt

Wallapop

Media4Care (€ 0.6M)

OpenRent

fintonic

Fineartmultiple

Kuchen Quelle

Danato

e-loue (€ 0.6M)

Momox

PippaJean

Springlane

Kitchen Trotter

MyBestBrands

Photocircle (€ 0.6M)

Jaimie Jacobs (€ 0.6M)

PromoFarma

KUKIMI (€ 0.6M)

€ 6M

HolidayInsider

Videostream360 (€ 0.6M)

Veeplay (€ 0.6M)

HelloCare (€ 0.6M)

€ 4M

MyMicroInvest

Fairr.de (€ 0.6M)

Medikompass

Ampido (€ 0.6M)

Tvib (€ 0.6M)

na

Flairelle (€ 0.6M)

Eurosender (€ 0.6M)

Ayondo

Easy cartouche (€ 0.4M)

na

Pauldirekt

Dreama.tv (€ 0.6M)

Jurato (€ 0.6M)

Groupalia

na

SecureBeam (€ 0.6M)

Ekoio (€ 0.6M)

Plick (€ 0.1M)

kaputt.de (€ 0.6M)

JustBook

get2play (€ 0.6M)

EYEGLASS24 (€ 0.6M)

Headweb

Immoinverse

Myonbelle GmbH (€ 0.6M)

Pablo & Paul (€ 0.6M)

PromikBook AB (€ 0.3M)

Cashboard (€ 0.6M)

NattPasset AB (€ 0.6M)

Twago (€ 2.7M)

na

PanoraBanques MorningCroissan (€ 3M) t

Q1

Q2

Q3

na

na

Talentry GmbH (€ 0.6M)

MyRadioDay (€ 0.6M)

Firma.de

asgoodasnew

Little Postman (€ 0.6M)

Toptarif

Tirendo

Tickethelden (€ 0.6M)

Kinematics GmbH (€ 0.6M)

Lieferando

Mawaju

Readly (€ 1.2M)

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Includes (up to) $ 44 million in media for Marley Spoon, March 2016.

La Nevera Roja (€ PrivateGriffe (€ 6M) 2.7M)

Q3

Q4

€ 5M Geschenke.de

€ 44M

Waynabox

Deliberry (€ 0M) Hundredrooms

€ 13M Eve Mattress

Includes €32 million for Job Today.

Clark

Hundredrooms

About You

€ 4M

JimDrive (€ 0.6M)

Larma Gruppen

CornerJob

€ 1M

Clark (€ 0.6M)

Localisy

123makler (€ 0.6M)

Deezer

Vakanta (€ 0.9M)

Storegate

€ 42M

Wallapop

tripREBEL (€ 0.6M)

Restaurantes.co m

Valendo GmbH (€ 0.6M)

Savedo

Billogram (€ 1M)

Wingit

BOOK A TIGER (€ 10M)

Asanayoga (€ 0.6M)

Fever

Foodist (€ 0.6M)

Groopify (€ 0.8M)

Meine SpielzeugKiste (€ 0.6M)

Washrocks

Clark (€ 3.3M)

CornerJob

Fazland

SpringTab (€ 0.6M)

Hundredrooms

Deporvillage (€ 2.5M)

Clark (€ 1M)

Fello (€ 1.1M)

Readly (€ 2.1M)

Deporvillage (€ 3.5M)

Cocoricauses (€ 0.4M)

playspace

Layoutfabrik (€ 0.6M)

Albert Learning (€ 0.2M)

Sefaireaider (€ 4.5M)

AlloVoisins (€ 1.7M)

Marley Spoon (€ 40M)

CornerJob (€ 3M)

CornerJob (€ 4.5M)

Lastgrab (€ 0.5M)

Job Today (€ 31.9M)

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

2012

2013

2014

2015

2016

2107

7 rounds

27 rounds

34 rounds

27 rounds

31 rounds

4 rounds

Source: Dealroom.co

4

Media-for-Equity: five tips for start-ups (by Nicolas Eglau) Introduction

▪ Media-for-Equity structures offer the opportunity for start-ups to increase brand awareness and scale up the business at an early stage without using their limited funding resources. Various media groups such as ProSiebenSat1, Channel 4 and RTL Netherlands have been building portfolios of ventures through MfE deals, each of them in a slightly different way. ▪ From a start-up perspective, it's key to leverage its position and negotiate the best possible structure.

1. Quality of media

▪ MfE structures have traditionally been built on the basis of unsold advertising space. Commercials were placed in off-prime slots, whether in day or night time or on smaller channels. This approach isn’t sufficient anymore for start-ups to reach their targets whilst other competitors promote their products in premium slots. Start-ups therefore need to make sure and agree in the contract they get the best possible campaign mix including prime time slots in big entertainment shows like The Voice. Only such mass audience positions will help scale up brand awareness and number of transactions.

2. Media planning

▪ Start-ups should make sure they get the best possible support form their MfE partner in building a media plan. Such services should be part of the MfE agreement, otherwise a lot of the media value could be wasted. The start-up team needs to give a clear and complete briefing regarding their marketing targets and agree with the broadcaster or publisher on concrete deliverables.

3. Media mix

▪ MfE deals potentially bear the risk of limiting specific campaign results. One reason could be that certain target groups are not sufficiently covered by the outlets of the media partner. It's key for the start-up to maintain the right to extend campaigns and include 3rd party media space. Alternatively a second MfE party with complementary demographics could be added to the partnership. Start-ups should absolutely avoid entering into exclusivity agreements with their MfE partner.

4. Creative

▪ Media contributions as part of MfE deals potentially create a step change for a start-up. A lot will however depend on the creative execution. The strongest media mix will fail if the message isn't clear or the spot perceived boring. Most new businesses have no experience in creating first class campaigns. It's in the interest of the media partner to give full support, potentially using internal resources or its network of creative agencies. If possible, start-ups should put such commitments into their partnership contract, the more concrete, the better!

5. Cash element

▪ MfE structures are a big step for young entrepreneurs as they trade a real asset (shares) against something they don't really know or understand. Founders want to be absolutely convinced their media partner is fully committed to the venture. One way to secure this commitment is to insist on a cash element alongside the media contribution. Such cash injection will definitely help from a psychological point of view. Beside this, these funds are needed to cover cost for staff, google or tech development. About Nicolas Eglau:

▪

Nicolas Eglau is based in London working as an advisor to A+E Network UK (a JV of Sky and A+E Networks). In his previous role as Chief Operating Officer, he managed A+E Networks' operating and commercial units in the UK and other territories including Finance, Legal, Operations, Strategy, Distribution and Ad Sales. He also served as General Manager, Nordics, Benelux & CEEMEA, overseeing the company’s offices in Copenhagen, Warsaw, Amsterdam and Johannesburg

▪

Eglau joined A+E Networks from RTL Netherlands after serving five years as a member of the Executive Board and Managing Director, Ventures. In this role he built and managed RTL Netherlands’ cable TV division as well as a portfolio of high growth digital start-ups, ranging from disruptive e-learning platforms such as Squla to digital marketplaces such as Couverts (in the meantime acquired by Tripadvisor)

▪

Previously, he was Vice President, Central and Eastern Europe for RTL Group. In this role, he executed a range of M&A initiatives across the region. Prior to joining RTL Group, Eglau held a Corporate Development position with Kirch Holding in Munich where he was part of a small strategy unit linked to the group's owner Leo Kirch

Source: Dealroom.co

5

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