Marketing Agencies and Investment Firms…A Perfect Match?

Apparently.

The latest trend in the marketing industry is marketing and advertising agencies are pairing up- or creating its own- investment firm so go after small, innovative companies and startups. Agencies large and small are jumping on this bandwagon. Heck, even the agency I’m with is dedicated to working with those in the startup tech sector.

But why the sudden wave of attention?

Choosing Winners and Losers
This is a new and exciting shift for those in the marketing world. Usually, a business that is already doing well gets to have its choice of marketing agency- agencies have to compete for the account. Not here. If marketing shops and investment firms provide incubation and brand centers for new and small businesses, they get to choose which business has a chance to succeed, and supplies them with the marketing and investment needed. In this world, marketers rule, and its the businesses that are competing for attention.

Guaranteed Revenue/Retainer
Perhaps the sweetest selling point, when a business finally does get chosen, the marketing agency gets to pretty much decide what the budget is going to be. It knows what revenue it is going to receive before the contract is signed. It eliminates the guessing games, negotiations, and most of the stress in the bidding process. In this scenario, the marketing agency has a pool of potential clients (or partners, depending on what kind of new business/startup it chooses).

Supporting Business and Innovation
New businesses create new jobs which brings in more money which makes economy go round. These companies are in the forefront of actually doing something to make sure our business landscape is still competitive in the international arena. These companies are not waiting for bank loans. These companies are not waiting for government grants. These companies, the agencies and investment firms, are trying to lay the foundation for the next phase of industry in this nation. And they are trying to get in on the ground floor, to set their own companies up for success down the road.

So, are marketing agencies and investment firms a perfect match? Like most relationships, only time will tell.