The Investment Bank Ozone Capital Advisors Pvt LTD is working with Indian media companies in an interesting advertising/investment scheme, the Wall Street Journal's liveMint.com reported Tuesday.

The bank's media unit, dubbed the Morpheus Media Fund (MMF), is to combine advertising space across Indian media houses, in turn reserving the space for promising start-up companies that don't have the money to buy ad space on their own.

The media companies that reserve ad space then become limited partners in MMF. They benefit with the success of the start-ups that advertise with them, liveMint reported.

The fund is seen as innovative way to approach media advertising since start-up companies aren't always able to buy advertising. In turn, the media firms become limited partners of the MMF, acquiring some of its units.

As in any deal, there are a number of problems, such as bias issues regarding mention of the start-ups or “lack of disclosure” about the financial relationship between the media firms and the start-ups. However, Mint reported that the deal possibly wouldn't alter the credibility of the media firms.

liveMint reported that the MMF hopes to raise around US$300 million in advertising space from 15 media organisations, including broadcast, radio and print. MMF expects to buy a 2 to 20 percent stake in ad space worth $2million to $20 million.