Over the last decade, more and more celebrities have dipped a toe into the role of angel investor. With plenty of disposable income, this trend makes sense. Plus, most celebrities accrue some type of professional skill in their related industry, which lets them dive into new ideas and projects with a bit of insider insight—especially where entertainment is concerned.
Still, that doesn’t mean that celebrities nail each major investment. Esports and NFTs are two great examples, which highlight the sink-or-swim nature of investment. Esports, thanks to the investment and participation of celebrity athletes, in particular, has evolved into a robust and lasting industry. NFTs, on the other hand, seem to have had their day in the limelight.
Some celebrities even seem to extend their careers through savvy business moves. Gwyneth Paltrow and Jessica Alba, for example, traded their careers in film to launch mega-profitable lifestyle-retail businesses like Goop and Honest. With tons of name recognition on their side and connections in the industry, those who succeed stand to gain millions—or even billions.
So, which projects and fields in entertainment are now seeing added attention from celebrities today? And do they have longevity?
Claiming the Metaverse
Piggybacking on the rise of eSports is the rise of the metaverse and a new digital age. However, there’s one lasting hurdle: VR technology. After over a decade of slow development and roadblocks, VR technology is now more affordable and reliable than ever before. This has led to tons of interest in VR gaming and the metaverse. Though most metaverses allow users to interact with or without VR technology, its use creates a much more immersive and engaging experience.
Already, celebrities are looking to set up a lasting presence in the metaverse. But what does this look like? Let’s look at the example of roulette, which is one of the world’s most popular casino games. Players can access different variations on the classic setup from an online poker platform, along with live dealer features. But given the popularity of the game, future croupiers are likely to spin the wheel in the metaverse.
Celebrities that have an interest in roulette or casinos could help fund and sponsor a virtual establishment, investing early to buy land in a particular metaverse. From there, this is a virtual address where they could also engage directly with fans, host events, and forge into the future of digital entertainment.
Already, Snoop Dogg has purchased virtual land in The Sandbox, which runs on Ethereum. Paris Hilton has set up Paris World on the Roblox platform. Beyond the US, South Korea’s BlankPink also has a setup on Zepeto, while Bollywood’s Pooja Entertainment created its very own Poojaverse to engage with fans.
Fintech is a Growing Interest
At first glance, fintech and entertainment don’t seem to have too much in common. Financial technology is about supporting and expanding the reach of digital payment systems and platforms. However, many applications of fintech are directly tied to entertainment. This is on both a macro and micro scale.
On a macro scale, the majority of entertainment transactions are facilitated through digital payment systems. On a micro-scale, fintech has had a hand in recent trends like NFTs—and especially the crypto boom. For example, the company SoFi recently built a $5.5 billion home stadium in Los Angeles for the local Rams and Chargers NFL franchises.
As mentioned above, NFTs were a huge investment trend—but one that has quickly fallen out of favor. Instead, celebs seem to be funneling their investment toward more solid crypto endeavors, such as MoonPay, a startup with the likes of Snoop Dogg, Drake, and Kate Hudson on board.
Similarly, A$AP Rocky has also brought celebs on board at his investment project Klarna, a fintech company that facilitates online retail. He’s tempted names like Tan France and, once again, Snoop Dogg to help him promote its services. Other notable projects include Kim Kardashian’s flop promoting the crypto EMAX, Justin Timerblake’s backing of the banking app Step, and Jay-Z founding his own venture capital firm called MVP (Marcy Venture Partners).