India has the third-largest startup ecosystem in the world right after USA and China. The Indian market is currently very conducive for startup industries. Moreover, the Government initiative of Startup India has given further impetus to the startup culture.
Startup funding has reached great heights since the year 2012. These industries are being encouraged by big investors. TV and sports celebrities are being seen to actively invest in different startup projects. Famous names like– Amitabh Bachchan, Virat Kohli, Deepika Padukone, Alia Bhatt, MS Dhoni, and several others have made major investments in different projects.
MS Dhoni recently launched the Run Adam. This is a sports technology platform that is based on analytics. This is meant to provide aspiring athletes with necessary resources such as coaches, training gear, and so on.
Various other startup companies have received major investments from TV tycoons and sports stars. Companies like Digit, Nykaa, and Bumble have big names like Virat Kohli and Anushka Sharma; Alia Bhatt, and Katrina Kaif; Priyanka Chopra is associated with them.
Celebrities are driven towards investing in startups mostly because they don’t want to limit themselves in their respective fields. Moreover, it helps them to gain popularity, and make money.
Startup brands willingly accept big-shot investors being associating their names help increase the brand value
According to Amit Purohit, the Founder of Fantasy Akhada, celebrities are driven to invest in startups mostly to expand and diversify their portfolios. It opens many new opportunities for them and helps them gain a bigger upside in their investments.
Celebrities nowadays prefer being brand investors to brand ambassadors. This helps them to avoid an all-cash transaction and be involved in different business scenarios.
Startups bring new companies often do not own a lot of capital in the form of cash. So they end up paying big celebrities partially in cash and the rest is paid to equity and participation.
Celebrity involvement helps startup companies too.
When a television or sports star becomes the face of a company, the market values of the company start rising. It starts earning more money. This in turn helps the celebrities too because they are the shareholders in these companies.
Therefore, popular figures are investing in startup companies more and more. It is equally profitable for both the business firms and the investors.
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