Scaleup Mediafund has secured investments in financial comparison website Finder and life insurance specialist NobleOak Life (ASX: NOL) as part of a $15 million funding round announced last year.
Described as Australia’s only dedicated media-for-equity fund, Scaleup Mediafund says the investments underscore the fund’s distinctive structure in supporting two high-growth brands.
While financial details of the transactions have not been disclosed by Scaleup Mediafund, NobleOak Life earlier this month revealed that its partnership comprises advertising space and services worth $1.5 million in exchange for shares in the company to that value.
“At NobleOak, we see ourselves as the leading challenger brand in Australia’s life insurance sector,” says Anthony Brown, the CEO of NobleOak.
“We pride ourselves on doing things differently, and Scaleup Mediafund’s investment will help us build our brand and support more Australians. This strategic approach will reinforce our position as the fastest-growing direct life insurer in the country.”
NobleOak revealed in an ASX announcement on 11 April that it has issued Scaleup Mediafund 1.02 million shares at $1.4712 each to complete the transaction.
Finder, the Australia financial comparison website founded in 2006 by Fred Schebesta, Frank Restuccia and Jeremy Cabral, is a privately owned company that has not disclosed the extent of the Scaleup Mediafund investment.
“We take great pride in connecting Aussies with the best deals on offer,” says Finder CEO Frank Restuccia, in explaining the reasoning behind accepting the investment from Scaleup Mediafund.
“Even as Australia's most-visited comparison platform, we want more to know we are here to help. Scaleup Mediafund’s unique proposition provides us with premium advertising channels to expand our brand awareness and reach, ensuring we continue to fulfill our commitment to help Australians find a better deal on all their financial products – loans, savings, insurance, telco, utilities, investments and more.”
The latest investments are part of a $15 million round by Scaleup Mediafund that kicked off in May last year with Vitable, Bare and Hawkes Brewing – giving them access to discounted ad and marketing rates with partners such as oOh!media (ASX: OML), REA Group (ASX: REA), News Corp (ASX: NWS), NOVA Entertainment and Foxtel.
Scaleup Mediafund followed this up with investments in low- and non-alcoholic cocktail company Naked Life, and end-to-end property conveyancing platform Settle Easy in October last year.
Scaleup Mediafund’s investment principal Michael Lamont says the latest deals provide NobleOak and Finder “affordable access to high-impact branding and advertising opportunities in exchange for equity”.
“By doing so, we help businesses build their brand, attract new customers, and accelerate growth,” says Lamont.
“We have now completed six investments in this current funding round, demonstrating that more businesses are proactively leveraging media-for-equity to achieve their growth objectives. We anticipate completing more deals in the coming months.
“With Finder, it’s important to recognise the role that the brand’s media agency, Frontier Australia, played in structuring the deal and recognising the vital role Scaleup Mediafund plays in brand building.”
Since its launch, Scaleup Mediafund’s investors have committed more than $45 million in advertising and marketing inventory to support Australian brands.
The fund has backed 21 businesses to date, five of which have achieved acquisition or IPO milestones.
Investors in the fund include News Corp Australia, NOVA Entertainment, Foxtel, REA Group, and oOh!media.
“With further investments in the pipeline, we’re building on the momentum we’ve created to drive the next evolution of how high-potential brands scale and succeed,” says Lamont.
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