Do you currently have a digital media technology or digital media company or other media related companies and are considering raising capital? This is one of the sectors much sought after by angel, venture capital and other investors. However, as technology and industry evolve, the definition of “New Media” or “Digital Media” or “Internet Media” is becoming broader. For capital seekers, it’s a big trend, as it means more companies are now expanding their mandate to include “media” assets. In this article, we revealed our latest interviews and conclusions from VCs and Angel Investors on what types 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:
1. Internet media
Broadly speaking, this means “website” business, a fund manager suggested that they analyze similar companies on eBay, Amazon and other web retailers; another fund manager suggested news websites with a single, selective target audience; such as the Hispanic news portal or a certain Internet television as investment opportunities.
2. Digital media technologies
Broadly speaking, technologies that can stream multimedia content, such as video clips and video broadcasts. Particular examples are digital technologies that can enhance the images of sporting events or digital remote control or specific digital technologies used on the iPhone or for real estate agents, for example.
3. Social networking websites
There are more and more fund managers separating it as an investment class. This is a particular area of interest and can get the attention of investors, essentially that if you are able to run a great social networking website, you will essentially own a very large database and be able to use it for marketing and for other purposes, it is a very powerful and low cost company that can grab the attention of venture capital investors.
4. Digital market research and digital marketing
Investors are struggling to come up with a universal term for this industry. Ultimately, this applies to companies that use the digital / online platform for services, including market research. A good example is my friend’s business, which has over 400,000 members, and is a perfect platform for conducting market research, has attracted $ 10 million from venture capitalists.
One area that many have not realized the potential of is market research and digital marketing agencies; this has been a booming particular area for venture capital investment; as they are low-cost, scalable companies; and usually fast growing companies due to new technologies and the concept introduced around online media.