• The online media sector raised $3.5 billion USD in venture capital in 2008, a 22% increase over the $2.9 billion in capital raised in 2007.
• The “enabling” sector saw the largest increase in capital raised, up 124% with $892 million in 2008.
• The mobile sector also saw big gains in investment capital, with $341 million – a whopping 488% increase over the $58 million raised by the mobile sector in 2007.
• The top five sectors in terms of transaction volume (not reported deal value) for equity raises in 2008 were:
  • Video & Online Games – 59 capital raise transactions;
  • Social Networking – 57 capital raise transactions;
  • Web Applications/Enabling/IT – 47 capital raise transactions;
  • Mobile – 35 capital raise transactions; and
  • Blogging/User Generated – 27 capital raise transactions.

Read the report, available as a PDF download.

Welcome to the FanTrust guide to digital success – Setting Your Digital Resolutions for 2009. December is traditionally a time for reflection and goal-setting, both personal and professional. Though you know what it takes to reach your goals for, say, losing weight (less eggnog, more yoga) or having fun (more eggnog, less yoga) –what if you’re venturing into uncharted business terrain?

Over the last two weeks, we’ve walked you through short, simple exercises – complete with case studies and success stories – intended to spark transformation in your company or division with overall corporate and business goals; digital capacity; market niche and fan engagement strategies.

With more than two decades of experience in digital media, FanTrust can help you grow your digital lines of business. Our hope is to leave you inspired and invigorated for a happy, healthy digital business in 2009.

All the best!

Week 4: Put Your Ideas into Action

Like any resolution, intention without action is useless. In this December blog series, FanTrust has helped your company to articulate digital goals for 2009; identify the niche value offered to your fans; and better understand your fan base. In this final blog, we discuss the need for a digital action plan.

No doubt you’ve identified many digital aspirations for the New Year. A long term vision prioritizes these goals, and assesses the time, financing, man power and strategic partnerships needed to achieve them.

To get started, ask the following questions for each digital goal or project you’ve identified:

• How will I define digital success? New audiences? Direct revenues? New or strengthened business partnerships? Is the project monetizable?
• What are the financial costs associated with this digital venture? Be sure to factor in time for planning, business meetings, securing necessary funding, etc.; employee/ executive time vs. third-party outsourcing.
• What funding/ financing options are available for this project? Canadian content producers can tap into several funding sources; entertainment companies can also underwrite projects through sponsorships, strategic partnerships or smart money. FanTrust can help you select and pursue the best options.
• What is the ROI for this digital project? Is the cost of implementing an idea justified by the payback: market exposure, revenue generation or social impact?

Answering these questions will help you set priorities and benchmarks for success. You’ll know you’ve achieved your goals when you track your results against pre-set, concrete, measureable targets. Good luck for a prosperous 2009!

FanTrust is a full service management consultancy laser-focused on digital entertainment.  We deliver a comprehensive range of services in all areas of new media and multiplatform development, production and distribution – as well as corporate strategy and business development to position your entertainment company in our digital age. For a full list of FanTrust services, visit the Impact + Clients section of our website.

Investors the world over all seem to look for the same things, whether you are in the old-fashioned widget business or the digital media business. Investors that I have worked with over the years all want to see:

• A great management team – source world-class talent
• A specific niche within the competitive landscape – you want some competition; Pepsi isn’t Pepsi without Coke
• A solid business plan and revenue model – use standard financial models, especially when projecting crazy-strange digital ideas
• Audience and Traffic; including community-building potential – valuations can be made or broken on these stats! It is worth noting that investors valued AOL customers at double what they valued Time Warner’s because of the profound AOL/ consumer relationship.

Of course, it’s just as important for entrepreneurs to carefully research and identify the right VC for their company. BusinessWeek recently wrote a great article on the topic, recommending that investors take into account (among other factors) the fund size, M&A/IPO exits and company shutdowns of VC firms in consideration.

Ultimately, creating a winning digital entertainment business is a trust-building enterprise. Amazon’s CEO Jeff Bezos would be the first person to tell you customer relationships must be earned — and re-earned — every day. Trust your fans. And, above all — as with all great entrepreneurs – trust your instincts.