Are you currently running a digital media or digital media technology company or other media-related businesses and considering raising capital? This is one of the most sought after sectors by angel, venture capital and other investors. However, as technology and industry evolve, the definition of “New Media”, “Digital Media” or “Internet Media” becomes more and more broad. For capital seekers, it’s a big trend, as this means more companies are now expanding their remit to include “media” assets. In this article, we reveal our latest interviews and findings from VCs and Angel Investors on what kind of sectors and segments they will be looking for in 2010.
What are they looking for?
In essence, the term Media/Digital Media generally applies to companies whose business activities are engaged in the following:
1. Internet media
Broadly speaking, this means “website” business, one fund manager suggests they will look to companies similar to eBay, Amazon, and other web retailers; another fund manager suggested news websites that have unique and selective target audiences; such as the Hispanic news portal, or a certain Internet TV as investment opportunities.
2.Digital media technologies
In general terms, technologies that can transmit the media, such as video clips, streaming video. Particular examples are digital technologies that can enhance images for sporting events, or digital remote control, or specific digital technologies used in the iPhone or for real estate agents, for example.
3. Social networking websites
More and more fund managers have separated this out as an investment class on its own. This is a particular area of interest and is likely to attract a lot of investor attention, with it being critical that if you can run a great social media website, you essentially have a very large database and can use this database for marketing. and other purposes, it is a very powerful, yet low-cost venture that may attract the attention of venture capitalists.
4. Digital Market Research and Digital Marketing
Investors are having a hard time finding a universal term for this industry. Ultimately, this applies to companies that use a digital/online platform for services, including market research. A very good example is my friend’s business, which has over 400,000 members and is a perfect platform for market research. It has attracted $10 million from venture capital investors.
One area many haven’t realized the potential of is market research and digital marketing agencies; This has been a particularly thriving area for venture capital firms to invest in; for being low-cost and scalable businesses; and typically fast growing companies due to new technologies and concepts introduced around online media.