Media Giants Turn Venture Capitalists: Comcast, Bertelsmann, and Financial Times' Startup Bets

Elpis VC
Aug 27
9 min read

The media world just got a lot more interesting! Major media companies are now writing checks to startups like seasoned VCs, and the numbers tell quite a story. We're watching major media companies actively hunt for startup opportunities, turning newsrooms and broadcasting studios into venture capital war rooms.

Media investment activity climbed steadily, hitting a multi-year peak with more than 120 investments and acquisitions last year. Comcast Ventures has been particularly aggressive, backing promising startups like Altspace VR's $10M Series A. Meanwhile, Bertelsmann Digital Media Investments and Financial Times' venture arm have built strategic portfolios that stretch well beyond their traditional media roots.

Here's what makes this shift fascinating: media companies finally recognize that startup partnerships aren't just nice-to-haves — they're essential pathways to future growth. Nearly 20% of AR/VR deals now flow to content-focused companies, positioning media conglomerates right at the sweet spot where technology meets storytelling.

📌 These investments help media corporations access disruptive innovation, strengthen their ecosystem presence, and build potential acquisition pipelines.

So what drives media powerhouses to become startup investors? And how are they reshaping both the media landscape and startup ecosystem? We'll explore the investment strategies behind this evolution and uncover what it means for both sides of these partnerships.

How media giants became startup investors

Something remarkable happened over the past decade. Media companies stopped just creating content and started creating investment portfolios. What started as a survival strategy has become a fundamental shift in how these organizations think about growth and relevance.

The shift from content creation to capital allocation

Media executives discovered something interesting—sometimes unused advertising inventory could be worth more as equity than as unsold ad space. The Europeans figured this out first. ProSiebenSat.1 Media SE pioneered the "media-for-equity" (M4E) model through SevenVentures back in the 1990s. The Times of India Group began making similar investments through Brand Capital in 2005, and here's the impressive part: they've accumulated nearly 1000 such investments over two decades.

The math is simple but brilliant. Media-for-equity deals let companies trade advertising space for startup equity — turning unused inventory into potentially lucrative investment portfolios while diversifying revenue streams beyond traditional advertising and subscriptions.

Why traditional media needed to evolve

Digital platforms forced traditional media into a corner, and smart executives knew they needed new moves. Diana Florescu, CEO of Mediaforgrowth, put it perfectly: "The cost of acquiring customers through digital channels has become so expensive that it eventually becomes a dead end".

Linear TV viewership keeps declining despite remaining trusted during crises, and traditional revenue models face constant disruption. Media organizations realized they needed fresh advertiser pools — and what better way than cultivating relationships with emerging companies that might become significant advertisers as they scale?

The rise of media venture capital arms

The numbers tell the story of rapid expansion. The UK alone saw 17 media-for-equity deals in 2023, up from just eight in 2018. The big players moved fast:

FT Ventures launched with £30 million (USD 37 million) for investing
DMG Ventures recently closed two £25 million funds focused on consumer startups
BBC's venture fund emerged from stealth last year

These aren't just check-writing operations. They typically target early-stage companies at seed to Series B stages, offering media exposure, industry expertise, and strategic guidance — unique value propositions that let them compete effectively with traditional VCs.

Will this trend continue expanding? ❗ With over 30 media-for-equity funds worldwide already operating, most offering TV advertising in exchange for equity, it certainly looks that way.

Inside the investment strategies of Comcast, Bertelsmann, and FT

Each of these media giants has developed distinct investment philosophies that reflect their corporate DNA and growth ambitions. Let's break down how they're actually deploying capital.

Comcast Ventures portfolio and focus areas

Comcast Ventures has quietly assembled an impressive portfolio of 274 companies since launching in 1999. Their investment thesis spans enterprise applications, high tech, and consumer sectors, but they've crystallized around six core focus areas: Data & AI, Enabling Tech, Energy & Sustainability, Future of Work, Health Tech, and Proptech.

What sets Comcast Ventures apart? They don't just write checks and walk away. The team actively uses Comcast NBCUniversal's expertise and scale to help portfolio companies grow faster. Recent bets include Resemble AI for generative voice technology, Hume for emotion-measuring AI, and Populus for urban transportation management.

Bertelsmann Digital Media Investments (BDMI) approach

BDMI operates with over USD 450 million under management, targeting next-generation media, web3, enterprise SaaS, and fintech startups since 2006. But here's where things get interesting — they recently made a bold strategic move.

Bertelsmann sold 50% of BDMI's portfolio holdings to external investors and transferred management to a newly formed firm called 1745 Ventures. This restructuring allows BDMI to capture the economic value of their investments while maintaining strategic relationships with portfolio companies.

How Financial Times engages with startups

FT Ventures launched with £30 million (approximately USD 37 million) from the FT Group's balance sheet, operating as an independent fund with its own board structure. They focus on high-growth companies within the global information industry.

Alexandra Calinikos, FT corporate development director, captures their approach perfectly: "We aim to foster mutually beneficial relationships, particularly where we can offer strategic partnerships alongside our investments that enable founders to benefit from our expertise". Their investment in Charter, a future-of-work media company, shows this dual-purpose strategy in action.

The Financial Times brings something unique to the table — they're not just investors, they're potential strategic partners who understand the information business inside and out.

What types of startups are attracting media capital

Where are media giants placing their bets? The investment patterns reveal some fascinating trends about where traditional media sees the future heading.

Media tech and content platforms

The digital media and entertainment market is massive — valued at USD 2.48 trillion globally—and media investors are paying close attention. Y Combinator alone has funded 73 content startups, including household names like The Athletic, Reddit, and Scribd.

Media corporations are particularly drawn to platforms that enable content creation and distribution. Take Storyboarder, which helps creators develop and sell webcomics in what's already a USD 12 billion global market. These aren't just content plays — they're infrastructure investments that could reshape how stories get told and sold.

Analytics and audience targeting tools

Here's where things get really interesting: AI-powered audience segmentation tools have become must-have investments. These technologies help media companies cut through the noise by dividing consumers into meaningful groups based on actual behavior and preferences.

Companies like Pixis Advance showcase exactly what media investors want — neural networks trained on billions of data points that identify high-intent audiences in real-time. We're also seeing significant investment in audience insight companies that collect consumer data through web analytics, social media, and customer feedback.

AR/VR and immersive storytelling

One of the biggest investment surges? ❗ Augmented and virtual reality startups attracted USD 7.20 billion globally in 2021, with projections showing the AR/VR market could hit USD 20 billion by 2027.

Recent deals tell the story: Newcastle-based Aircards secured £3 million from Foresight Group for immersive brand storytelling technology, while Cosm raised over USD 250 million to develop "shared reality" experiences in dedicated venues. Media companies see these technologies as the future of storytelling — blending physical spaces with digital experiences in ways we're just beginning to explore.

Youth-focused digital brands

Media investors are aggressively pursuing platforms that capture younger demographics. The Responsible Technology Youth Power Fund backs youth-led organizations across digital health, education, social media, and AI sectors.

The momentum is building: youth-focused neobank Muvin secured USD 3 million in funding, and parental control platform Bark Technologies raised USD 30 million in Series C funding. Media companies understand that winning the next generation means meeting them where they are — on digital platforms built specifically for their needs.

Subscription and micropayment models

What about sustainable revenue? Media companies are betting big on alternative payment systems that could replace traditional advertising models. Recast recently secured USD 5 million to evolve from a streaming service into a micropayment platform for the sports industry.

Swiss startup tiun raised €2.5 million to develop streamlined payment approaches for media, specifically targeting younger audiences. These investments reflect a fundamental shift toward subscription-based business models that generate predictable, recurring revenue streams — changing how media companies think about customer relationships entirely.

So what patterns do you see emerging from these investment choices?

What this means for the future of media and startups

Corporate venture capital from media giants is creating some fascinating ripple effects across the innovation landscape. The intersection of media money and startup ambition is opening doors we didn't even know existed.

How CVC media investments shape innovation

Here's something that might surprise you: corporate venture investments from media giants significantly boost innovation in portfolio companies, especially regarding invention patents. These strategic partnerships create a virtuous cycle — innovations flow back into parent company offerings, strengthening both sides.

Despite fears of "kill zones," research shows insufficient evidence that these investments actually hinder innovation in related fields. The data suggests the opposite might be true.

The role of accelerators and incubators

Media-focused acceleration programs have exploded globally! At least 58 prominent accelerators now specialize in media startups. Programs like Immediate don't just write checks — they offer proprietary media assets, production capabilities, and distribution networks to help startups scale rapidly.

These ecosystems deliver much more than funding. They provide technical assistance, mentorship, and those crucial industry connections that can make or break a startup's trajectory.

Risks and rewards for both sides

The numbers tell a compelling story: Strategic CVC firms often achieve internal rates of return exceeding 15%, with a 2.0x median multiple on invested capital.

But here's the real kicker ❗ Startups backed by CVC have higher successful exit rates (39% vs. 33%) and lower failure rates (18% vs. 24%) compared to those without such backing. The strategic value clearly extends beyond capital alone.

The growing overlap between media and tech

The "three C's" — computing, communication, and content — are becoming inseparable. This convergence is fundamentally altering traditional business models and enabling entirely new content forms. We're witnessing personalized, interactive experiences replace the old mass audience approaches.

What does this mean for the future? Media companies that successfully blend financial returns with strategic innovation insights will emerge stronger. Those that don't risk finding themselves on the wrong side of this evolution.

Conclusion

Media giants have officially entered a new era — one where content creation and venture capital go hand in hand. Comcast, Bertelsmann, and Financial Times aren't just telling stories anymore; they're funding the companies that will define how stories get told next.

The numbers speak for themselves: startups backed by media CVCs enjoy higher exit rates and lower failure probabilities compared to their independently funded counterparts. Meanwhile, media companies gain early access to emerging technologies, fresh revenue channels, and strategic insights into evolving consumer behaviors.

What's next? Media-for-equity models will likely expand well beyond Europe and North America as publishers worldwide hunt for alternatives to traditional advertising revenue. Investment focus areas will keep evolving — particularly around immersive technologies, AI-powered content creation, and youth-focused platforms.

Media giants bring something unique to the table as venture investors. Their extensive audience reach, content expertise, and distribution networks provide value that goes way beyond writing checks. These strategic assets help portfolio companies scale faster while creating mutual growth opportunities that pure financial investors simply can't match.

Here's the reality: adaptation through investment has become essential, not optional. Companies that successfully balance financial returns with strategic innovation insights will emerge stronger in an increasingly digital media landscape. Those that don't? They risk finding themselves on the wrong side of disruption.

We look forward to seeing how this media-meets-venture-capital story unfolds. What types of startups do you think will attract the most media investment in the next five years?

FAQs

Q1. Why are media companies investing in startups?

Media companies are investing in startups to diversify revenue streams, tap into emerging technologies, and stay competitive in the rapidly evolving digital landscape. This strategy allows them to access innovation beyond their core businesses and potentially discover new growth opportunities.

Q2. What types of startups are attracting media investments?

Media giants are primarily investing in startups focused on media tech, content platforms, analytics tools, AR/VR technologies, youth-oriented digital brands, and subscription/micropayment models. These areas align with the evolving needs of the media industry and consumer trends.

Q3. How does the media-for-equity model work?

The media-for-equity model involves media companies offering advertising space or other media resources to startups in exchange for equity stakes. This approach allows media companies to utilize unused inventory while building potentially lucrative investment portfolios, and startups benefit from valuable media exposure.

Q4. What benefits do startups gain from media company investments?

Startups backed by media corporate venture capital often enjoy higher successful exit rates and lower failure rates compared to those without such backing. They also benefit from strategic partnerships, industry expertise, media exposure, and access to extensive distribution networks.

Q5. How is this trend shaping the future of media and technology?

The convergence of media and technology through these investments is leading to new forms of content, more personalized and interactive experiences, and innovative business models. It's also accelerating the development of emerging technologies like AR/VR and AI-powered content creation, potentially reshaping how media is produced and consumed.