Money talks: Should you consider investment?

By Vanessa Chapman 11-09-2025

In the first of a two-part look at what owners of TV prodcos should do to attract investment, Vanessa Chapman, MD of VJC Media and co-founder of consultancy The Growth Partners, offers her insights into the process of getting investment-ready.

As the 1980s classic hit song said: Money’s Too Tight to Mention, which feels a reasonably apt summary of the current industry atmosphere, given the downturn in commissioning across much of the industry.

It’s so ingrained now that conversations have in part moved beyond lamenting the status quo into an atmosphere of collaboration and innovation to reflect the changing world. But businesses don’t run on commitment and enterprise alone, so many companies are looking to new sources of finance with investment seen as an attractive proposition for businesses aiming to pivot and grow, navigating into potentially more stable – or even unchartered – waters.

But is investment a simple path to sunny uplands? Business owners can often overestimate worth and underestimate the demands of having a third party come on board. As with any financial undertaking there are a few important elements to consider, not least some deep and realistic soul-searching. Is investment right for you? Are you ready to undertake the rigorous process of getting investor-ready? Are you realistic in your goals? Do you even know what your short and long-term goals are?

Investment is not a lottery win. Most investors invest in opportunity and growth, not to simply keep a previously profitable business afloat. Can you articulate both your foundations and your vision? It’s worth working with pre-investment advisors to work thoroughly through the considerations and clarify your positioning and goals.

Money should not always be too tight to mention

So, once you’ve done the work and decided, in the words of another classic hit, Money. That’s What I Want – let’s talk hard cash.

Different types of investors vary in approach, stage of investment and level of involvement. In a session at last year’s Cartoon Business Iris Capital co-founder Pierre De Fouquet recommended media companies target their efforts on private equity (PE) investors, rather than venture capital (VC) or angel investment, and highlighted that understanding the dynamics of the investment market is crucial for companies seeking funding.

But there are early opportunities: Hasham Khan, founder of ABP Advisory, a specialist advisor to content companies, says: “There is investment scope for executives who have left broadcasters or other media groups to start up on their own, to get early investment, even pre-revenue. Ideally, they would have the support of a first commission or an exciting development slate. For example, I recently advised Phil Barantini, director of Netflix’s global hit Adolescence, to take investment into his nascent prodco, IAMU Productions.”

Angel investors typically invest their own funds at an early stage – you may also hear it described as seed finance – and may offer more personal involvement and often mentoring. Think Dragons’ Den. VCs also invest early but in later-stage startups, such as tech companies with visionary founders, and they aim to scale rapidly. The funds are managed, and VCs typically have a strategic involvement via a team of analysts. Angel investors may be more patient and be satisfied with modest returns over a longer period as they work hands-on with the management team, while VCs generally look for higher returns over a shorter timeframe.

PE funds are usually focused on SMEs with a proven track record and seasoned management, so we’re talking experienced production companies with some success and several commissions under their belt. Khan says: “There is still an appetite and money out there to invest, especially if you have proven IP and you have demonstrated that you can get recommissioned or have licensing deals in place. This year, I’ve been advising a European private equity fund on making sizeable investments in TV production. We’ve already made the first acquisition of a large production company and are looking to build a pan-European group across scripted, non-scripted and animation.”

PE funds will generally take a greater ownership stake, a seat on the board and will be actively involved in overseeing the company so you will need to be comfortable with making room for changes and handing over at least part of the reins.

PE firms focus on the pursuit of long-term value creation via certain operational changes, often restructuring, refocusing a company’s product or service line for growth and sometimes integrating with other firms in their portfolio, so you need to make sure that their vision aligns with your own goals. They will want you to deliver a lot of information resulting in much more admin and accountability and often more frequent board meetings.

If you underperform and under deliver, they might take over a greater share of your business or if you need more cash, the interest rates can be high. They can also decide to fire those who underperform. However, investment is typically larger as more capital is needed to execute on ambitious growth plans over around generally a three- to five-year period with some exceptions.

Given the approach, you could think of it as buying a house for investment vs owning a home to live in. As a property owner you would make choices to set up your home to your taste and as the best place for you long-term, as a property investor, your decisions would be steered by ROI and a set timeframe for sale. Your PE investor is the latter. Their concern is purely financial and delivering a return to their investors, so the potential financial upside can be high. Issues can arise as they typically don’t understand the creative process and, if things go wrong, such as there is a delay in commissioning that affects your cash flow and your Ebitda, they will act decisively.

As with any financial undertaking, research and preparation is key. It is often the case that founders don’t have a sense of the value of the business or know how to evaluate its worth. That’s when expert advice is helpful to arrive at a realistic valuation of your company as well as to prepare your pitch. You need to be sure of your narrative and have clarity in your storytelling. To continue the property metaphor, you want to make sure your house is in order and well-presented to be ‘market ready’ for viewings. Hopefully your investor will walk through the door and see scope for development.