Raiz is the micro-investing platform where customers can round-up their purchases and invest into a portfolio of shares.
Background: Seven West Media are one of Australia's biggest media business. They own Channel 7 (and all their subsidiaries) as well as newspapers and online publications.
What happened: On the other side, we've got Raiz, the micro-investing platform where customers can round-up their purchases and invest into a portfolio of shares. Two very different businesses.
What else: Now, Seven are taking a strategic investment of 6.6% in Raiz in exchange for $2 million in cash and $8 million in advertising across Seven's channels.
💡Media for equity is an investment model where a company gets media coverage in exchange for shares in their company.
💡Marketing campaigns can be hugely beneficial for companies, because they help build awareness about the product...but they cost a bucketload of money.
💡So, the media for equity model allows companies to get advertising, without impacting their cash flow. It works for media companies too, because they often have TV spots that haven't been filled.
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