Scott is the founder of Influencer Capital and CELEB. He is a thought leader on the creator economy and celebrity business space. Influencer Capital is an organization that structures equity deals between startups and creators/celebrities.
Guest Author: Scott Van den Berg
When celebrities invest cash into startups they often get lower valuations in exchange for promotion. And I believe that is exactly what happened with Ronaldo’s latest investment in wearable technology company WHOOP.
The Portuguese soccer icon just invested and became an official global ambassador for Whoop, the wearable technology company.
“Whoop has had a transformative impact on my life both on and off the pitch,” Ronaldo said in a statement. “I wear Whoop while training, sleeping, and recovering. It’s been one of the most important tools helping me elevate my game and monitor my health.”
The financial details of the investment have not been disclosed, but according to Whoop, the deal represents one of Ronaldo’s “most significant investments to date.”
Although it could definitely be true that Ronaldo invested cash, I don’t believe he paid the full price for it (but this is just an assumption).
Often when celebrities invest, they get discounted valuations or do a part equity deal in exchange for promoting the company.
Ronaldo for example has 629 million followers on Instagram and is the most followed person on the platform.
One post about a company and the website will probably blow up (which is exactly what Ronaldo did this morning btw announcing his partnership with Whoop).
Besides getting a financial injection, most often the startups receiving the celebrity investment also gain a lot of social exposure, which they normally have to pay millions of dollars for.
So it makes sense to do a part equity deal or offer a lower valuation.
What do you think?
