Media for equity: what does the deal really cost you?

How to read the result

The default values follow the example from our analysis: a startup valued at €18M before the deal signs for €2M of media space. It gives up 10% of its capital. But if those €2M match the rate card and the same plan can be bought for €700,000 through negotiation, it gave up 10% for €700,000 of real value: its implied valuation drops to €7M, versus €20M on paper.

The formula to remember: real net value of the space ÷ stake given up = implied valuation. Compare it with your last cash valuation. If the gap is large, you're not financing growth, you're selling equity at a discount in exchange for visibility.

4 questions to ask before signing

1. On what basis is the space valued? Gross (rate card) or net? Demand a comparison with a market buying price, checked by someone whose job is to buy that inventory. To estimate that net price, our campaign cost calculator and media costs barometer give the orders of magnitude.

2. Which slots and formats will actually be available? If the answer stays vague, you're paying equity for late-night leftovers.

3. Would you have spent this budget in cash anyway? Build the media plan first, look for financing second. If the plan doesn't stand up funded in euros, it won't stand up better funded in shares.

4. Should you sign before or after your next round? The valuation is locked at signing: signing just before a round that doubles your valuation means giving up twice too much equity for the same inventory.

Who it works for

Media for equity works when the target is broad and the main barrier is trust: energy, mobility, renovation, food, reuse. That's why it often suits greentech. For a B2B software company targeting a few hundred accounts, mass inventory doesn't match the audience to reach.

Jour de Chance also practises a form of media for equity with a selection of startups, converting part of its fees into equity. Why this model, and on what terms.