Times Private Treaties' give companies a fast track to the market by offsetting the cost of advertising space to equity. These help the advertising market expand and give companies a good alternative to keep their brand building.
THE RECENT global recognition of Times Private Treaties model when it was voted as one of the seven most innovative business models by the PubliGroupe and International Newsmedia Marketing Association (INMA) in the "Innovative Business Models Contest”, points to a deeper shift happening across the world of funding and investment.
While the world rejoices with green shoots becoming real green-backs with the US Fed chief declaring that the recession is over, the world doesn't look the same for the PE/VC industry. Reports on different aspects of the industry, indicate that the collapse of the financial system took more than the appetite to invest.
Forbes, for instance, reports that despite the life sciences industry being a confident one, the traditional providers of venture capital in the United States - university endowments and pension funds - whose assets have been reduced sharply over the last year, are pulling back. Even successful investors are staying away.
According to some reports, institutional investors of PE funds too are abandoning them as they feel that these funds don't have enough bandwidth or success to justify high management fee.
On the other hand, new ways of 'venturing' have come into being. Khosla's green fund is an example of a successful closure. Anna Sofat, founder of Addidi, the UK’s women-only wealth manager, launched a women-only angel investment club to draw the 4,000-plus women with more than £5m (€5.7m) in liquid assets. About half the UK’s millionaires are women, according to Datamonitor, and the idea is to tap the 7% of UK investors who are women.While the "Innovative Business Models Contest” focused on identifying how media companies are extending their brand to fill market space, attract new audiences and generate revenue streams, the telling factor is that in these recessionary times, the appetite to invest and to advertise have been impacted. Models like the Times Private Treaties are giving companies, specially those with limited spends, an opportunity to stay on the growth path.
The Times Private Treaties’ give companies a fast track to the market by offsetting the cost of advertising space to equity. These help the advertising market expand and give companies a good alternative to keep their brand building. While Times becomes a risk sharer by selling out space against future equity gains, the invested company tends to win by getting advertising muscle.