"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."
"Since 2022, the UK-based MediaForGrowth fund has been connecting startups with media 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 Mercurius Media Capital."
Consumer startup funding has plunged from $6.3 billion in Q1 2022 to $800 million in Q1 2025, with consumer brands raising $800 million across 111 deals—the lowest since at least 2019. Media-for-equity lets startups exchange small equity stakes for unsold premium advertising inventory or airtime, enabling brand scaling and lift-off while conserving cash. The model has supported companies like Zalando, Uber, Airbnb, and Pinterest internationally and is gaining momentum in the U.S. Funds such as MediaForGrowth and Mercurius Media Capital have connected startups with major media partners including Sinclair Broadcast Group, TelevisaUnivision, and Atmosphere TV.
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