How Media Capital Is Accelerating Brand Growth for Consumer Brands

We’ve laid the groundwork on how strategic brand advertising boosts pricing power and profitability. Now, let's dive deeper into media capital, the investment strategy powering substantial growth for consumer brands worldwide.

Media capital is a fast-growing venture model that enables growth-stage startups to trade equity for access to advertising, such as television, print, radio, or digital media.

Since its founding in 2022, MFG has emerged as the leading platform for media capital investments, partnering with more than 20 media companies and building a portfolio of 24 alumni companies across 10 countries, including publicly listed Camplify (ASX: CHL). In the US, MFG operates a media capital fund of $30 million backing growth-stage consumer brands scaling in the US market.

What sets MFG apart is its diverse media stack, global investor network, and unique media programs, which provide selected brands with a dedicated team of media planners, branding experts, and media capital investments to enhance their presence in key European markets and the US.

To better understand the returns achieved by consumer brands that raised media capital, we analyzed 530+ investments completed over the past decade. dia fund manager survey. You can access a free copy here to see what we found.

1,000+ Consumer Brands Used Media Capital

Over 1,000 consumer brands have already embraced media capital, with investment activity accelerating significantly over the past decade. Specifically, 446 international brands have secured at least one media capital deal, marking a major shift in how companies approach scaling their businesses.

Media Capital-Backed Businesses Penetrate Mass Market 5 Years Earlier

Speed matters, and media capital delivers exceptional results quickly. Analysis of 278 brands founded within the last decade revealed startups using media capital - particularly through TV advertising - reached mass-market penetration five years earlier compared to those relying exclusively on traditional methods.

94% of Media Capital-Backed Companies Remain Active Today

Media capital demonstrates impressive sustainability and success. Of 263 companies founded between 2014 and 2020 that secured media capital, an extraordinary 94% remain active today and continue raising additional funding rounds.

Out of 598: 43 IPOs, 135 Acquisitions

Brands aiming for public markets benefit significantly from media capital, which expedites their journey to IPO. Among 598 analyzed brands, 43 successfully went public, achieving this crucial milestone approximately a year faster than typical B2C companies. Additionally, 135 brands experienced acquisitions, highlighting media capital's substantial role in achieving key financial outcomes.

69% of Fund Managers Report Positive Financial Returns

Media capital has become integral to corporate venture strategies. An overwhelming 94% of fund managers plan to maintain or increase their media capital investments in 2025. Even in its early stages, the media-for-equity model is proving effective: 69% of fund managers report positive financial outcomes, while 56.2% achieve strategic returns such as diversified advertiser bases and new market access. Impressively, 36% have realized at least a 1x Money on Money (MoM) return, with 21% surpassing a 3x MoM return.

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34 Unicorns Are Grateful for Media Capital

So far, 34 unicorns have directly attributed significant valuation increases to media capital investments. Brands at every growth stage, from late-seed startups to publicly listed companies, regularly leverage media capital. Notably, Series A startups represent the majority, comprising 32% of all media capital investments.

Europe Dominates, US Gains Momentum

Sweden, Germany, and the UK currently dominate the global media capital scene. Sweden’s Aggregate Media leads with 126 deals in the past decade, followed by Germany’s SevenVentures and German Media Pool. The UK's Channel 4 Ventures also significantly contributes. The US, currently ranked fourth, is rapidly gaining momentum and expected to become the global leader by 2030.

TV Advertising Continues to Lead, Influencers Rise

Despite digital media growth, traditional TV advertising remains the primary channel in media capital deals due to its broad reach and powerful impact. Additionally, influencer marketing is emerging strongly, with celebrities increasingly trading their influence for equity, signaling a new direction in media capital strategies.

E-commerce at the Forefront

Various industries engage in media capital deals, with e-commerce clearly leading. Other sectors, including healthcare, food & beverages, fintech, consumer electronics, and entertainment, also significantly leverage media capital, highlighting its versatility across different consumer markets.

73% of Fund Managers See Startup Awareness as Key Issue

Despite notable successes, awareness and understanding remain key challenges. A significant 73% of fund managers highlight educating growth-stage startups on media capital's benefits as their biggest hurdle. Addressing this knowledge gap is crucial for future growth.

Media capital represents a powerful force reshaping consumer brand growth. But how did this model come to life? In our next article, we'll explore the historical roots and development of media capital, shedding light on how this model emerged and transformed the business landscape.

This article is part of a series uncovering the funding and business challenges faced by consumer brands and how brand advertising can play a strategic role in accelerating growth. If you missed out on the other posts, take a look here: