Practical aspect
Investing in start-ups mean there is potential in the business idea/product/service being offered.
Initially, only the belief and the return on investment are considered to invest in any start-up. But the biggest practical aspect is the availability of capital. Beyond doubt, risk-taking ability, the courage to bear the consequences if something goes wrong are the points to be considered for any investment.
Celebrities are paid well! Therefore, becoming an investor may not be the question but why in ‘Start-ups’ can be!
Psychological aspect
The psychosocial change is a part of the life span which will push a human being to think about ways to give back to society. The famous psychologist, Erikson named it ‘Generativity’ – act of performing meaningful work and reaching out to others to guide and give to the next generation.
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It’s not always the celebrities who reach out to invest. In fact, celebrities are often approached by start-ups for better reach of the product/service.
What motivates celebrities to invest?
Knowing the exact reasons may be unidentifiable until clarified. Here summarizing few for any celebrity to join the Investor league:
Additional Income
Risk-taking ability
Social responsibility
Conviction in the idea/product/service
Creative minds with lots of money and business acumen
Strong Presentation of a unique business model for a good return on their investment
Relatable cause and feel the need to encourage such businesses
Promote interests like healthy food, fitness, education and women empowerment
What’s in for me?
It’s not always the celebrities who reach out to invest. In fact, celebrities are often approached by start-ups for better reach of the product/service.
People relate to celebrities especially when they promote the cause close to their heart. Their belief in the product makes it realistic and relatable to the masses. It builds credibility, adds visibility and a large customer base. Availability of digital media platform even makes the process simpler and promotes the product in no time.
Celebrity involvement means attracting more investors. Thus, giving an opportunity to start-ups to stay in the game for long.
Primarily, it is the food, fashion and fitness brand which the celebrities promote like Hrithik Roshan (one of the fittest celebrities) has invested in ‘Cure fit’ (fitness chain). But few are breaking the stereotype and disrupting the market like Deepika Padukone who invested in ‘Furlenco’ and ‘Blue Smart’. And last but not the least, Aishwarya Rai’s investment in ‘Ambee’.
It’s well written article.. covering all aspects .