Digital Media Investments – What Opportunities Are Being Considered?
Are you currently running a Digital Media Technology or a Digital Media company or other media related companies and considering raising capital? This is one of the highly sought after sectors by the angel, venture capital and other investors. However, as the technology and industry evolve, the definition of “New Media” or “Digital Media” or “Internet Media” is becoming more and more broad. For capital seekers, it is a great trend as this means more companies are now expanding their mandate to include “media” assets, in this article, we revealed the our latest interviews and findings from VCs and Angel Investors about what kind of sectors and segments they will be looking in 2010.
What are they seeking?
In essence, the term Media / Digital Media is generally applies to companies whose business activities are engaged in the following:
1. Internet Media
In broad terms, this means “website” business, one fund manager suggested they will look at companies similar to ebay, Amazon and other web retailers; another fund manager suggested news websites that have unique and selective target audiences; such as Hispanic news portal, or a particular Internet TV as investment opportunities.
2. Digital Media Technologies
In broad terms, technologies that can stream the media such as video clips, video streaming. Particular examples are digital technologies that can enhance the images for sports events, or digital remote control, or specific digital technologies used on iPhone or for real estate agents for instance.
3. Social Media Websites
More and more fund managers have separate this as an investment class on its own. This is a particular area of interest and likely to draw much attention from investors, the fundamental being that if you are able to run a large Social Media website, you would essentially own a very large database, and you can utilize this database for marketing and other purposes, it is very powerful and yet, low-cost venture that is able to draw attention from venture capital investors.
4. Digital Market Research & Digital Marketing
Investors are finding a hard time in coming with an universal term for this industry. Ultimately, this applies to companies that use digital / online platform for services, including Market Research. A very good example is my friend’s business which has over 400,000 members, and it is a perfect platform to conduct market research, he has attracted $10m from venture capital investors.
One area many have not realized the potential is Market Research and Digital Marketing Agencies; this has been a particular booming area for venture capital firms to invest; as they are low-cost and scalable businesses; and usually fast growing companies because of the new technologies and concept introduced around online media.