The digital media industry is booming. But is it worth investing in? Traditional media companies seem to think so. Then again, maybe it is the only way for them to be part of the digital era. VC’s and traditional investors can also participate in this technological growth. But are they comfortable with the fact that the business model of media start-ups is only based on ad revenue? If both parties combine their forces, can alternative revenue streams be found? Are media start-ups in MENA capable to survive in a market that is filled with state owned media and large media corporations? As investment partner at Younnic, Erik Saelens, Brandhome’s founder and executive strategic director, is on top of this subject. Younnic invests in ambitious technology in the MENA region by providing them growth capital in this fast growing market. And it works. So yes, the digital media industry is worth investing in!

1. Is it attractive to invest
in digital media in MENA?

2. Erik Saelens, Investment Partner, Younnic®
At Step Conference Middle East, Dubai 2016
2

3. Two questions
1 Are digital media investments interesting?
2 Is it interesting to do this in MENA?
3

4. Digital media
• Define media = packed information
in communication channels
• All media is and will be digital media
• Investing = creating more value
for you and the user
4

5. YES
5
If it makes the
user happier
So…
Should we invest in Digital media?

6. MENA REGION
Estimated 4x growth of digital media by 2018.
BUT this is a result of complex processes under the hood
and should NOT serve as an investment guidance on its own.
6

7. Core drivers in MENA in industry
1. Fast growing and young population
2. Society leapfrogging from “no communication
and media consumption” to “full mobile media”
3. Increasing demand for local content
7

8. 8
But first…
Funnels international
content
Gets the relevant
local content together
So…
Is investing in MENA interesting?
YES

9. What are the key trends /
challenges in the digital
media industry impacting
VC investments in
this space?

10. Two major
trends
10

11. Information overload
11
24 hours a day – 8 hours sleep –
16 hours – 3.650 advertising messages
= 4 messages per minute
= 1 every 15 seconds
1

12. Infobesity
= The inability to absorb and process
all the information to which we are exposed
12
IFS

13. 13
Poor
concentration
Information
Fatigue
Syndrome
Hostility
Falling into a trance-
like state
Burn-out
Compulsion to check
e-mail, voice mail and
the Internet to stay
connected
Depression
Lower immune
response

14. 14
of advertising
effectiveness
Implosion

15. 15
Monetization
Market is highly fragmented and underdeveloped
Target audience is not defined sharply enough
Uncertainty in the marketable value of the content2

16. What type of
investments are
attractive to you?

17. 4 things
Younnic®
aspires 17

18. Curing the information cancer
By using Meaningful media people are willing
to pay for, where they are willing to consume
and where advertisers find a new place
18
1

19. Scalable & profit model
Solid profit model
from day 1
19
2

20. Niches
Leaving little space
for competition
20
3

21. The bridge
Between
MENA companies
and Europe
21
4

22. 22
Now is the time
Go to younnic.com!

23. www.younnic.com
Younnic Capital Partners, Techno Hub, Dubai Silicon
Oasis, Dubai, United Arab Emirates