Channel 4 gears up new investment for ‘overlooked’ start-ups
Channel 4 has launched a new investment initiative targeted towards “overlooked” start-ups, providing advertising opportunities in exchange for equity as the firm searches for new sources of revenue.
The “Untapped” initiative, led by the media company’s investment arm, Channel 4 Ventures, is aimed at providing investment to high-growth businesses led by traditionally underrepresented founders based on criteria such as gender, education, ethinicity and income.
Centred around a media-for-equity model, qualifying start-ups would receive Channel 4 advertising opportunities in exchange for an equity stake in the company.
The latest revenue-boosting effort comes amid a recent digital push for the firm following major job cuts and cost-cutting measures in an ongoing race to stay “well ahead” of competitors with the rising power of streaming platforms such as Netflix and Amazon Prime Video.
Vinay Solanki, head of Channel 4 Ventures, said: “Untapped will enable Channel 4 to invest in and incubate high-growth businesses, delivering significant commercial returns to drive forward Channel 4’s distinctive remit.
“The data implies that a wide range of talented founders leading attractive commercial organisations are being overlooked by the current ecosystem and we are committed to identifying and backing them.”
The decision follows the media company’s own analysis into founder profiles of companies who have received £100m or more in funding since 2013, which highlighted 94 per cent of founders were men and 67 per cent came from within the “traditional” start-up ecosystem prior.
“More broadly, Untapped can be a catalyst to grow the UK consumer investment landscape and encourage others to follow in the investment space,” Solanki added.
The initiative also comes as other media channels begin to ramp up their media-for-equity models, including ITV’s AdVentures Invest initiative focused on “high-growth, digital-first companies”.