Scaleup Mediafund, Australia's sole media-for-equity fund, has completed its first two investments under a new funding round that has committed an additional $15 million in brand advertising and paid media. The fund has also broadened its membership to include outdoor advertising specialists, oOh!media.

To date, Scaleup Mediafund has committed over $45 million in advertising and marketing inventory to the nation's startup sector since founding in 2017. This has supported the growth of 17 businesses, five of which have reached the milestone of acquisition or IPO. The fund offers discounted advertising and marketing inventory in exchange for equity, providing early-stage businesses access to scale advertising and marketing inventory from some of the country's largest publishers and broadcasters.

Participating members include prominent publishers and broadcasters such as News Corp Australia, NOVA Entertainment, Foxtel and REA Group.

The two new deals the fund has struck will see it invest in Hawkes Brewing Co and Bare Funeral Group.

"Hawkes Brewing was impressed by Scaleup Mediafund's unique way of backing our brand and leaning-in to help drive our business forward. Right from the start, they really got what we're about and what will make a difference," said Glen Brasington, Hawkes Brewing's CEO. "Scaleups' premium inventory and the team's commitment have seriously boosted our progress."

Scaleup Mediafund Investment Principal, Michael Lamont, said the group offers a straightforward and unique deal structure for founders of consumer-facing brands to access affordable high-impact brand and advertising opportunities in exchange for equity.

"We have embraced the challenge that new brands face - how to best build their presence, attract consumers and scale effectively. Scaleup is the only Australian fund solely dedicated to addressing this issue, which offers substantial opportunity for startups to accelerate growth," he said.

Australian startup funding fell by 52.7% in 2023, with only a fraction of it being invested in consumer-facing brands.

"Given the preference of venture capital markets for investments in technology and enterprise software, we offer unparalleled access to investment capital and advertising knowhow for consumer brand startups which, we believe, are underserved by traditional venture capital - we encourage businesses focused on driving marketing-based growth to reach out and see how they can benefit from the reach, data and insights that our network of industry professionals provides," said Lamont.