4Equity – Media Ventures, an independent media for equity firm, announces the establishment of a R$500 million authorized capital Participations Investment Fund (FIP) in Brazil. The company, founded by Felipe Hatab, Renato Mendes, Eduardo Loureiro, and David Halaban, allows post-series-A B2C, B2B2C, or D2C startups to exchange equity for access to premium advertising space, leveraging 4Equity – Media Ventures’ partnerships with relevant players in the Brazilian advertising market.
The establishment of 4Equity – Media Ventures emphasizes the importance of the media in the equity market, which is still relatively unexplored. According to the 2022-2023 State of Global Media for Growth Funding survey conducted by mediaforgrowth, startups that position themselves in relevant media spaces raise three times more money, accelerate 32 times faster, and reach IPOs two years and eight months faster than companies invested solely in traditional venture capital funding, despite the fact that the model is still very new in Brazil.
The business model enables startups to gain access to various media outlets affiliated with 4Equity, with the goal of accelerating growth and increasing brand awareness. We provide quality advertising spaces without draining cash and gain equity in exchange.
Marketing is expensive and is one of the main cost lines for those accelerating growth, says Felipe Hatab, the company’s CEO and founder. Felipe sees this as an opportunity market for Brazilian media outlets and influencers. “They open themselves up to a new source of revenue in addition to becoming partners of the startups, he adds.
The strategy is designed to deliver only relevant media to the founders – our company only gains when the startups grow to a higher value than when the fund invested, Felipe concludes.
According to Renato Mendes, founder and CIO, 4equity is here to disrupt paradigms and accelerate startup growth.
4Equity – Media Ventures is the first Latin American independent firm to offer this business model to Brazilian startups. The goal is to have 10 invested startups by 2023 and 30 by 2026. 4Equity – Media Ventures currently has two partner companies and expects to close two deals in the second quarter.