Funding of Media Venture Essay Example | Topics and Well Written Essays - 3500 words

Funding of Media Venture - Essay poserIt 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 craft plan which contains a solid fear concept. This is because the funding agencies like the donors, banks or sponsors expect a snuff it 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 make sound business concepts will in most cases find it hard to germinate funds because they atomic number 18 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 loving product and services in form of quali ty advertisement and creative thinking by the media military unit 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 hear at before providing funding to the media firms. They first look at the probability of success of the product that the media wants to advance 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 simplicity since they assume that their investments are not going to be put in a business that is as well risky with limited chances of survival. Picard noted on the contrary that venture capitalists are in most cases backward to provide funds to media firms if they establish that the products on offer have very low chances of success2. Capital ro om access Most companies that provide funding to media ventures require that the latter have a given amount as part of their financial tie-up of operations 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 actor that those media companies that were seeking funding to venture into the internet services but lacked the stated amount could not lounge about 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