We’ve become used to musicians investing in startups, and not just as individual angel investors either. Snoop Dogg, Nas and Linkin Park are among the artists who’ve set up proper venture capitalist vehicles. Now US VC firm Loud Capital wants to help more celebrities, from musicians to esports stars and influencers, turn investor. It has launched a new company called Legacy Entertainment Ventures, based in New York, which will “build private-label venture funds surrounding a celebrity’s name and brand”.
The company says that the funds will partly use the celebrities’ own capital, but will also bring in other investors – the idea being that professional investors “buy in to their favourite celebrity brands”, and those celebrities then invest in startups or products that correspond to their interests.
As an example, Legacy cites the emerging ‘cannabidiol’ market (CBD – an active ingredient in cannabis, which is being used for medical purposes). “If a musician were interested in CBD, Legacy Entertainment Ventures would help that celebrity identify the best companies, develop a private-label product around his or her name, and help that company manage the celebrity investment,” it explains.
Loud Capital has announced its new company: the next task will be to sign up musicians and celebrities to work with it.
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