Gurgaon, India (PressExposure) September 30, 2009 -- The recent global recognition of Times Private Treaties model when it was voted as one of the 7 most innovative business models by the PubliGroupe and International Newsmedia Marketing Association (INMA) in the second edition of 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 greenbacks with the end of recession declared by the US Fed Chief, the world doesn't look the same for the PE/VC industry. Reports on different aspects of the industry seems to indicate that the collapse of the financial system burnt more than the appetite to invest.
Forbes, for instance, reports that despite the life sciences industry being a picture of expanding horizons and confidence, 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 in the collapse of financial markets, are pulling back. Even successful investors in the life sciences industry are staying away.
According to some reports, institutional investors of PE funds too are abandoning funds and going their own way since they feel that these funds just don't have enough bandwidth or success to justify their high management fee.
On the other hand, there are new ways of 'venturing' coming into being. Khosla's green fund is one example of a successful closure. Anna Sofat, founder of Addidi, the UK's women-only wealth manager, has launched a women-only angel investment club to draw out the 4,000-plus women with more than Â£5m (â¬5.7m) in liquid assets in the UK. About half the UK's millionaires are female, according to Datamonitor, and the idea is to tap and grow the 7% of UK angel investors who are women.
While the "Innovative Business Models Contest" contest focused on identifying how media companies are extending their brand to fill a new market space, attract new audiences, and generate new revenue streams, the more telling factor lies in the fact that in these recessionary times, the appetite to invest and to advertise both have been impacted and models such as the Times Private Treaties are giving companies, specially those with limited spends, an opportunity to stay on the growth path.
The Times Private Treaties' innovative approach to giving companies a fast track to the market by offsetting the cost of advertising space to equity seems to be a classic solution to helping both the advertising market expand while giving companies a good alternative to keep their brand building going. While Times becomes a risk sharer by selling out space against future equity gains, the invested company tends to be the winner by getting considerable advertising muscle.