Vitable secures funding from Scaleup Mediafund's $15m media-for-equity round

Vitable, a fast-growing vitamins delivery company co-founded by Larah Loutati and Ilyas Anane, has been announced as one of the first three investments in Scaleup Mediafund's latest $15 million media-for-equity round. The Sydney-based fund, backed by leading Australian media groups, will provide Vitable with discounted inventory in advertising and marketing to drive brand awareness and accelerate growth.

Transaction snapshot

  • Deal value: N/A
  • Deal multiples: N/A
  • Deal type: Media-for-equity
  • Investors: Scaleup Mediafund, with backing from News Corp, NOVA Entertainment, Foxtel, REA Group, and oOh!media

Scaleup Mediafund has committed $45 million since its inception in 2017, and boasts an impressive track record with five of its first 15 investments achieving milestones of acquisition or IPO. These include Mable (formerly Better Caring), which received a $100 million investment from General Atlantic in 2021, Pointsbet (ASX: PBH), and Mad Paws (ASX: MPA). The fund's investment principal, Michael Lamont, emphasises the importance of helping startups like Vitable build their presence, attract consumers, and scale effectively by transitioning from relying on "search and social" to building a strong brand.

Vitable is set to benefit from Scaleup Mediafund's unique model, which provides access to affordable high-impact brand and advertising opportunities in exchange for equity. The fund's extensive media network, including the recently added oOh!media with its 35,000-plus out-of-home locations, will give Vitable a significant boost in brand exposure.

Lamont believes that the media-for-equity model is crucial for consumer-facing startups, particularly in the current venture capital climate where technology and enterprise software investments are preferred. Scaleup Mediafund aims to fill this gap by providing unparalleled access to investment capital and advertising expertise.

With Australian startup funding falling by 52.7% in 2023, Vitable's success in securing funding from Scaleup Mediafund highlights the potential for media-for-equity deals to support the growth of promising consumer brands. Alongside Vitable, funeral industry disruptor Bare and Hawkes Brewing are also set to benefit from the fund's latest round.

As Vitable continues to expand its vitamins delivery service, the support from Scaleup Mediafund is expected to play a key role in its future success. Lamont concludes, "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."

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