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Funding of Media Venture - Essay Example

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The researcher of this present paper will attempt to explore the key requirements for media organizations seeking funding. The current study will also discuss the various obstacles that the media firms face when seeking funds from various sources. …
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Funding of Media Venture
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Download file to see previous pages It is the main concern of the following paper to discuss with examples of the key requirements for, and obstacles faced when, seeking funding for a media venture. For a media firm to be able to secure funding, one of the requirements in many cases is a business plan which contains a solid business concept. This is because the funding agencies like the donors, banks or sponsors expect a return out of the funds they invest in the media venture. For this reason, they believe that a media firm with a good business concept would be able to compete effectively with other media firms and in the end make profit. However, the media firms that do not have sound business concepts will in most cases find it hard to acquire funds because they are perceived to be risky businesses that may not compete effectively in the media industry. A good business concept in this case will include details of the winning product and services in form of quality advertisement and creative thinking by the media personnel especially the journalists, the presenters and writers. Hewlett-Packard Company for example required that those media companies that seek funding must first ensure that they have a sound business plan. Product viability is another key requirement that venture capitalists tend to look at before providing funding to the media firms. They first look at the probability of success of the product that the media wants to offer in the market. If they realize that the products that the media wants to offer have high chances of success, the funds will be provided with relative ease since they assume that their investments are not going to be put in a business that is too risky with limited chances of survival. Picard noted on the contrary that venture capitalists are in most cases reluctant to provide funds to media firms if they establish that the products on offer have very low chances of success2. Capital Threshold Most companies that provide funding to media ventures require that the latter have a given amount as part of their financial base before they can be offered funds. This situation was witnessed when HP Company announced their funding program to internet startups in which they required interested media companies to have a financial base of $250000 in capital before they could be considered for funding3. This capital threshold is meant to indicate the seriousness of the media company. The capital base also ensures that the company can provide security to its customers and clients before the business can pick up. This means that those media companies that were seeking funding to venture into the internet services but lacked the stated amount could not get funds from Hewlett-Packard4. Compliance with Government Regulations Before the media venture can be provided with funding from outside sources, they are normally required to be in compliance with government regulations and policies5. This is to ensure that the business that is being financed is a legal entity and operates within the legal framework. The media ventures that comply with the government regulations show signs of seriousness in doing business as opposed to those that fail to comply. Those who provide funding to ...Download file to see next pagesRead More
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