In 2025, consumer startups are facing a cash squeeze unlike anything in recent memory. Funding has fallen dramatically—from a high of $6.3 billion in the first quarter of 2022 to just $800 million in the first quarter of 2025, according to Carta. Consumer brands on Carta’s platform raised just $800 million across 111 deals in the first quarter, the lowest total since at least 2019.
One potential remedy now gaining traction is the media-for-equity model, a financing approach where startups trade small amounts of equity for premium advertising space or airtime. For startups, it offers a way to scale brand awareness and achieve lift-off without burning through scarce cash. For consumers, especially in personal finance, this means that more financial products can break into the mainstream at a time when choice, affordability, and trust matter most.
From Europe To The U.S.
The mechanics of media-for-equity are straightforward: A media company provides unsold ad inventory and, in return, receives an equity stake in the startup. Internationally, the model has fueled the rise of companies like Zalando, Uber, Airbnb and Pinterest. More recently, it has gained popularity in the United States.
Since 2022, the U.K.-based MediaForGrowth fund has been connecting startups with media outlets in the U.S. and Europe. In December 2023, Mercurius Media Capital (MMC) became the first U.S.-based fund dedicated to media-for-equity, launching with $90 million in committed capital.
“At MMC, we see media-for-equity as a catalyst for shaping markets, not just growing companies,” said Piyush Puri, founding partner of MMC.
MMC has since partnered with outlets including Sinclair Broadcast Group, TelevisaUnivision and Atmosphere TV, giving consumer brands access to mass media channels that would otherwise be out of reach.
Why It Matters For Households
Media-for-equity isn’t just a story about startups and investors. It directly affects how consumers discover and evaluate new financial products. As consumers’ financial circumstances become increasingly complex and multifaceted, they need a greater and more innovative range of financial products than ever before. And as marketing becomes more expensive and VC funding scarce, fewer innovative financial providers will make it to market.
The draw of the media-for-equity model is that it gives these innovative brands a new kind of runway. Recently, a new consumer savings platform, mynestegg, struck a deal of this kind with ITV AdVentures Invest for a figure of up to £3 million. Stability and longevity are also important reasons to consider media-for-equity: one that 87% of media-for-equity-backed startups have survived long-term, compared to a 10% industry average. That means more reliability in the financial providers that consumers rely on.
At the same time, media companies benefit from diversifying their revenue streams, which has long-term implications for the content ecosystem consumers depend on. According to research by the World Association of News Publishers, non-traditional revenue sources now account for nearly 24% of publisher income, an increase of five percentage points from the previous year.
How Does It Work?
For consumers, the most immediate impact is seeing new financial solutions achieve visibility faster. One example is Edly, a student loan company that recently signed a $1 million media-for-equity deal with MMC.
With a focus on outcomes-based repayment and long-term affordability, Edly sits at the intersection of personal finance, education, and empowerment in a way that resonates far beyond the classroom. Through Sinclair’s broadcast network, Edly was able to reach college sports audiences during March Madness and football season, positioning itself directly in front of the students and families it serves at an ideal moment.
Exposure to companies like Edly expands the range of financing options at a time when traditional loan products are evolving. “By integrating their mission into premium sports moments with Sinclair, we weren’t just buying awareness; we were embedding financial wellbeing into the cultural conversation. That’s the kind of lasting value media, deployed strategically, can create,” Puri added.
The Next Phase: Influence Meets Equity
The media-for-equity model is evolving year by year. Beyond TV and print, startups are now structuring equity-for-influence deals, giving creators ownership stakes in return for long-term advocacy. The influencer economy has grown from $1.7 billion in 2016 to $24 billion in 2024. Although TV remains a prestigious format with unparalleled reach, it’s far from the only channel that can give visibility, credibility, and assurance to emerging brands. Equity partnerships align creators’ incentives with consumer trust, pushing them beyond one-off endorsements into sustained brand building.
Access to influencer partnerships is also important for startups so that they can reach multiple market segments, whether they need to connect with more traditional audiences and build brand recognition, or reach younger and more online audiences with tailored messages. Most importantly, startups need to be able to connect with consumers while their window of opportunity remains open, and without burning through budgets to do so.
A New Kind Of Growth Story
Personal finance isn’t just about managing money—it’s about the ecosystem of companies shaping how we borrow, spend, and invest.
Media-for-equity represents a new growth story in that ecosystem. For startups, it offers survival and scale. For media companies, it provides upside in the brands of tomorrow. And for consumers, it means innovative financial providers and apps can reach the market faster, backed by the credibility of trusted media platforms.