Behind the brands
Private equity (PE) is capital invested in a company that is not publicly listed or traded. Venture capital (VC) is funding provided to startups or other young businesses that show strong potential for long-term growth.
Since 2007 Venture Capital (VC) and Private Equity ( PE ) companies have invested over 420 billion SEK in Sweden, representing 4.7 % of Sweden’s BNP.
From some of your favorite famous brands to some obscure B2B services or restaurant chains, we have around 1 000 companies that have supported these brands as part of their portfolio companies.
The support offered to the portfolio companies comes in different forms:
• Providing capital: Venture capital and private equity firms invest capital in their portfolio companies, which can help these companies grow and achieve their goals. This funding can come in the form of equity, debt, or a combination of both.
• Strategic guidance: Many venture capital and private equity firms have experienced professionals who can provide strategic guidance to their portfolio companies. This may include advice on business strategy, marketing, operations, and other key areas.
• Networking: Venture capital and private equity firms often have extensive networks of contacts in various industries, which can be leveraged to help portfolio companies. This may include introductions to potential customers, suppliers, and partners, as well as other investors.
• Operational support: In addition to strategic guidance, some venture capital and private equity firms provide operational support to their portfolio companies. This may include assistance with hiring, financial management, and other key aspects of running a business.
• Exit strategy: Venture capital and private equity firms are typically looking for a return on their investment, which means they will work with their portfolio companies to prepare for a potential exit. This may involve an initial public offering (IPO), a sale to another company, or other options.
By providing funding, strategic guidance, networking opportunities, and other forms of support, these firms can help entrepreneurs achieve their goals and build successful businesses.
Video content at its full capability
When I worked in the public sector, one thing I noticed was that most publicly listed companies and the Swedish public sector use video content to its full capability, not only for marketing purposes but to facilitate company culture.
For private companies, this is a bit more difficult, especially due to higher prices without the leverage of quantity, or bulk pricing.
Here is where Venture Capital and Private Equity companies can help their portfolios even more.
As you might already know video content amounts to around 80% of all internet content and all major platforms have made video their central focus.
This is an important trend to follow not only in your social media strategy but also in terms of general business communication considering that video is the preferred way of consuming information by the general public.
This is why another effective way that venture capital and private equity firms can use to aid their portfolio companies has to be video content. Many such businesses are taking steps to include video in their support offerings as they realize how important it is in the current digital ecosystem.
Video content as a business development tool
Here are a few strategies for using video content to benefit portfolio companies:
Marketing and branding: A business can benefit from using video content to showcase its products and services and strengthen its brand. Private equity and venture capital firms can collaborate with their portfolio companies to produce professional movies that emphasize their unique value proposition, promote their offerings, and engage with their core audience.
Investor Relations: Venture capital and private equity firms can use video content to keep their investors informed about portfolio company developments, and help them understand the progress being made. These firms can keep investors engaged and up-to-date on the latest news by creating regular video updates.
Training and Education: Video content can also be a valuable tool for training and educating employees. Venture capital and private equity firms can work with their portfolio companies to create training videos covering sales techniques, customer service, and product knowledge.
Pitching and Presenting: Venture capital and private equity firms can also help their portfolio companies create effective pitch videos to present to potential customers, investors, and partners. These videos can showcase the company's products and services, highlight its unique value proposition, and help it stand out from the competition.
Conclusions
Incorporating video content into their support offerings can be a powerful way for venture capital and private equity firms to help their portfolio companies grow and succeed. By leveraging their position, these firms can help their portfolio companies access the same deals that larger, public companies get for their video content needs.
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