Start-ups that secured a media-for-equity investment register a 9x higher survival rate

Grai researched the effect of Media for Equity deals. For the research, Grai analyzed 149 start-ups that have completed a media for equity deal since the start of the century. The results are astonishing. 

Of the 149 companies that secured a media for equity deal, 87% is still active. That is significantly more than the 10% average survival rate of start-ups. That makes you wonder: why are these deals so successful?

According to Grai, media for equity is so successful because start-ups gain access to know-how and mentorship to do media right. Start-ups lack experience when it comes to handling marketing ideas. 29% of start-ups fail because of poor marketing. After product-market fit, poor marketing is the #2 reason for start-ups to fail. With a media for equity deal, start-ups can tap into the expertise of media groups on how to reach their audience. 

It is also successful because mutual interests are aligned. The more successful the media for equity deals is, the more value the equity has. Therefore, media companies are incentivized to produce the best work possible and will support you in the long run. 

See here the link to the full report.