Scaleup Mediafund has backed financial services comparison scaleup Finder and ASX-listed life insurance specialist NobleOak in its latest media-for-equity investment swap.
The fund provides companies with advertising and paid media from its $15 million third fund – the value of discounted advertising inventory provided by the fund members – spanning publishers, outdoor advertising firms and broadcasters.
Its backers include News Corp, Nova, Foxtel, REA Group, and oOh!media.
The size of the Finder deal was not disclosed, but Scaleup Mediafund investment principal Michael Lamont said it was “one of the larger investments made by the fund”, while the NobleOak (ASX: NOL) investment was worth $1.5m in return for 1,019,532 shares at $1.4712 each.
“We have now completed six investments in this current funding round, demonstrating that more businesses are proactively leveraging media-for-equity to achieve their growth objectives. We anticipate completing more deals in the coming months,” Lamont said.
“With Finder, it’s important to recognise the role that the brand’s media agency, Frontier Australia, played in structuring the deal and recognising the vital role Scaleup Mediafund plays in brand building.”
NobleOak CEO Anthony Brow, said they see ourselves as the leading challenger brand in Australia’s life insurance sector.
“We pride ourselves on doing things differently, and Scaleup Mediafund’s investment will help us build our brand and support more Australians,” he said.
“This strategic approach will reinforce our position as the fastest-growing direct life insurer in the country.”
The two investments are among six made by the fund, with one more in the pipeline
Finder cofounder and CEO Frank Restuccia said: “Scaleup Mediafund’s unique proposition provides us with premium advertising channels to expand our brand awareness and reach, ensuring we continue to fulfil our commitment to help Australians find a better deal on all their financial products”.
Since launching in Scaleup Mediafund’s investors have committed more than $45 million in advertising and marketing inventory to 21 businesses as venture investments, with five heading to the exits via acquisition or an IPO.
Previous investments include Mable, Hey You, PointsBet, Mosh and Mad Paws, and last year Hawke’s Brewing and Bare Funeral Group in ad deals worth around $1 million each.
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