Celebrities Investing in Tech Industries Is Changing The Present Scenario

A rather new type of business is connecting Hollywood to Silicon Valley. SEO company Australia says that what is connecting them is the network designed between celebrities and startups and this network is of middlemen. These networks of middlemen help celebrities find and invest in tech startups and other apps which are related to their personal brand.

In this process these celebs get a percentage of the company and they while offer branding and financial resources in return. They do not become investors only for sometime instead they invest in these for a long term and try to make that investment profitable.

Celebrity investments in startups and apps is different as compared to the investments done by VCs :

• They are connected to the investment seekers by some middlemen
• They bring a strong personal brand.
• The most important is that their career is not affected by that of the startup.

These celebrities are more inclined towards these startups because there is  a big advantage of making money in entertainment and if they invest some of it in apps or other tech companies then too their primary income is not going to be affected by performance of the startup. And if the same happens in the case of VC then their career will suffer definitely.

One more advantage of their investment is that if the startup could not flourish well they will receive praises for investing in it and helping it to rise higher. So, they can take risks in this case unlike the VCs.

Celebrities mostly avoid seed funding:

According to SEO Adelaide Celebrities mostly invest as Series A or Series B investment and totally avoid seed funding. Seed Funding is all about financial support in the initial stages of developing a product or service which includes outlining design elements, and finding out what the final product or service will look like when it is launched.

They are most benefitted when they get the most out of their investment when the targeted demographic matches their own followers. This is the greatest reason which creates Series A as the most popular point for celebrities to invest. The audience has been established, and their personal brand will help bring the startup to the another level.

They have high expectations:

Studies have reported that celebrities are eagerly looking for a Hollywood outcome which offers high initial public and large payouts. This not only increases the pressure on startups to deliver outstanding results quickly but it feeds the tech industry.

As a whole Hollywood and Silicon Valley are more connected with each other. Celebrities are not only investing in tech startups, but also in apps. It will be interesting to watch the relationship as it unfolds, it seems that in coming time celebrities could have an enormous impact on the tech industry.

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