Scaleup Mediafund boosts Hawkes Brewing with new investment

Scaleup Mediafund, the sole media-for-equity fund in Australia, has executed its first two investments under a newly initiated funding round that has pledged AUD $15 million in brand advertising and paid media. The recent investments target Hawkes Brewing and Bare Funeral Group, aiming to accelerate their growth in the consumer-facing startup sector.

Since its inception in 2017, Scaleup Mediafund has committed over AUD $45 million in advertising and marketing inventory, backing the growth of 17 start-ups, five of which have reached significant milestones such as acquisition or IPO. The fund includes prominent publishers and broadcasters, such as News Corp Australia, NOVA Entertainment, Foxtel and REA Group. Recently, it has welcomed outdoor advertising specialist oOh!media into its ranks, thereby extending its reach to an out-of-home network of over 35,000 locations.

Glen Brasington, CEO of Hawkes Brewing, expressed enthusiasm about the new partnership with Scaleup Mediafund. "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. Scaleups' premium inventory and the team's commitment have seriously boosted our progress," Brasington said.

Scaleup Mediafund employs an innovative approach by supplying discounted advertising and marketing inventory to early-stage businesses in exchange for equity. This strategy allows start-ups to benefit from extensive advertising and marketing opportunities through some of the country's largest media channels, thereby accelerating their brand-building efforts.

Michael Lamont, Scaleup Mediafund Investment Principal, highlighted the fund's unique proposition for consumer-facing brands. "We offer a straightforward and unique deal structure for founders to access affordable high-impact brand and advertising opportunities in exchange for equity," Lamont stated. "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, offering substantial opportunity for startups to expedite their growth."

The recent funding round and new investments in Hawkes Brewing and Bare Funeral Group come at a crucial time for Australian start-ups. In 2023, startup funding fell by 52.7 per cent, with a disproportionately low fraction directed towards consumer-facing brands. This decline underscores the importance of alternative funding mechanisms like media-for-equity to sustain and nurture emerging companies in this sector.

Lamont further encouraged new startups to consider the benefits of the fund. "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," he added.