Borderbridge Consulting
BBC
Borderbridge is a media capital consulting firm that helps media groups diversify their revenue streams through innovative frameworks such as Media-for-Equity investments and venture building.
ID: 835972996824-55
Lobbying Activity
Response to EU Start-up and Scale-up Strategy
12 Mar 2025
In the EU Startup and Scaleup Strategy consultation, I emphasize Media-for-Equity investment models as a key tool to enhance startups access to finance markets. Despite documented challenges with venture capital availability, regulation, and market access, innovative financing models like media-for-equity remain underexplored in the EU. In this model, startups trade equity for advertising inventory (TV, radio, print, digital). It significantly aids their growth by enhancing market penetration, brand awareness, and customer acquisition without the upfront costs of traditional advertising. The European media landscape is highly diverse, with large pan-European media groups and strong national players. As a European innovation, Media-for-equity was first implemented in Sweden, and next-gen funds have emerged successfully in several Member States, such as Germany, France, Belgium, Netherlands, Spain, Portugal, Italy, and others; supporting high-growth companies like Zalando (Unicorn, Germany), Satispay (Unicorn, Italy), JobToday (Luxembourg), what3words (UK), dott (Netherlands), Rappi (Unicorn, Colombia), AboutYou (Unicorn, Germany), and more. We propose the EU Startup and Scaleup Strategy incorporate the following measures to unlock the potential of media-for-equity and make it a strategic enabler for startup growth across the Union: 1. Recognition and Promotion: The Commission should recognize media-for-equity as a key financing tool for EU startups, encouraging engagement from startups, media groups, and investors. 2. Establishment of European Media-for-Equity Platforms: The EU could fund cross-border media-for-equity platform development, enabling partnerships among media groups, venture capitalists, and startups to enhance scalability beyond domestic markets. 3. Public-Private Co-Investment Funds: Consider co-investment funds where EU resources match media-for-equity investments. This would leverage private investments and reduce risks for startups in sectors aligned with EU priorities like green transition and health. 4. Access to Expertise and Standardization: Develop guidelines for fair valuation in media-for-equity deals and provide advisory services to help startups negotiate agreements effectively while maintaining growth control. 5. Inclusion in EU Support Programs: Integrate media-for-equity into existing EU funding and accelerator programs, encouraging startups to consider it for scaling. 6. Economic Incentives for Media Groups: Introduce tax breaks or subsidies to encourage media groups to participate in media-for-equity, enhancing their view of startup equity as a valuable asset. 7. Cost-Efficiency and Low Risk: Emphasize that media-for-equity is cost-efficient, requiring minimal financial commitment from public funds. Risks are lower than cash investments, as advertising inventory retains value while offering potential growth benefits. 8. Monitoring and Research: Research the impact of media-for-equity on startup growth and the European innovation ecosystem to inform future policymaking. 9. Synergies with the European Media Freedom Act: Media-for-equity can support the Media Freedom Act's goal of safeguarding editorial independence by providing non-intrusive funding to independent media startups, promoting financial sustainability, and reducing dependence on biased funding sources. The proposed measures align with the EU Startup and Scaleup Strategy to reduce financing gaps, accelerate market access, and enhance competitiveness. Media-for-equity complements traditional equity financing, especially for consumer-oriented startups where market visibility is crucial for scaling. Embedding media-for-equity into the EU's startup ecosystem empowers startups to grow faster, strengthen brands, and attract follow-on investment. This supports a more dynamic European startup landscape, advancing the EU's innovation and economic resilience goals.
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