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Channel 4’s commercial growth fund to offer ad spots in exchange for equity in companies with “potential”

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By Jennifer Faull, Deputy Editor

June 9, 2015 | 3 min read

Channel 4 has launched a Commercial Growth Fund which will offer “high growth potential companies” access to its advertising inventory in exchange for equity stakes or revenue share arrangements.

The proposition builds on Channel 4’s Indie Growth Fund, which opened up last year to support seven independent production companies. Channel 4 hopes the extension will stimulate TV advertising spend from new to brands.

On-demand audio service Deezer was revealed as the first company to strike a deal through the fund which will come into fruition later this year.

“TV advertising is vital to high growth companies looking to quickly build their reach and significantly grow their business,” said chief executive David Abraham.

“Extending our existing Growth Fund initiative to support a larger range of businesses, like Deezer, by providing access to Channel4’s marketing platform is another powerful example of Channel 4’s commercial innovation.”

The launch also sees the arrival of Vinay Solanki to the newly created role of head of fund. He will report to director of commercial and business developement Sarah Rose, who in turn reports into Channel 4's commercial director Jonathan Allan.

Channel 4 expects to announce further Commercial Growth Fund investments later this year.

It comes as the broadcaster announced revenue was up £30m to £938m, with advertising and sponsorship contributing £869m (up £23m year on year). It's planned three-year investment and break even business targets also remained on track, ending the year with an overall financial surplus of £3m and cash reserves remaining above £220m for the fifth year in a row.

Speculation has been mounting that the government may move to sell off Channel 4 in a £1bn bid to reduce the country’s debt.

Channel 4 Deezer

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