Fintechnews Switzerland
June 11, 2024
Big-name investors have become influential in the venture capital (VC) world, bringing significant name recognition, credibility and strategic support to the startups they invest in. But some investors stand out from the crowd with their knack for identifying future unicorns and hot mergers and acquisitions (M&A) targets.
Market intelligence platform CB Insights has launched the “Celebrity VC Index,” ranking the top 20 celebrity investors based on portfolio strength. The index considers recent fundraising and exit activity, unicorn metrics and the Mosaic scores of portfolio companies to identify the most successful celebrity VCs.
The Mosaic Score is a proprietary algorithm developed by CB Insights to evaluate the health and growth potential of private companies. It combines various metrics and data points into a single score to assess a company's viability and future prospects.
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<h4>The best investors to find the most active and well-known VCs and future unicorns</h4>
<p>According to the Celebrity VC Index, former American football player Joe Montana is the most active and successful celebrity VC, topping the rankings for having invested more and created more unicorn startups than any other celebrity.</p>
<p>Since 2020, Montana-based Liquid 2 Ventures has invested in 569 deals and backed 10 of today's unicorn startups, including Airbyte, an open source data integration platform valued at $1.5 billion, Pipe, a financial services company providing non-dilutive capital solutions to companies valued at $2 billion, and Whatnot, a livestreaming shopping platform valued at $3.7 billion.</p>
<p>American actor and entrepreneur Ashton Kutcher comes in second, with his Sound Ventures making 118 investments since 2020 and betting on five unicorn startups. These ventures include online grocery delivery service Misfits Market, currently valued at $2 billion, online pharmacy platform Truepill, valued at $1.6 billion, and elderly home care startup Papa, valued at $1.4 billion.</p>
<h4>Most exits and highest mosaic score average</h4>
<p>Electronic DJ duo The Chainsmokers and rapper/entrepreneur Jay-Z have recorded the most exits relative to total deal volume, with five exits each via M&A or initial public offerings (IPOs) since 2020. The Chainsmokers and Jay-Z rank third and fourth, respectively, on the Celebrity VC Index.</p>
<p>The Chainsmokers have backed startups such as Flink, an online supermarket valued at $1.07 billion, and WeLoveNoCode, a marketplace that connects 5,000 companies with 36,000 no-code developers. Jay-Z, meanwhile, has invested in ventures such as health tech startup K Health, valued at $1.5 billion, and Oatly, a Swedish company developing an oat-based dairy alternative. Oatly went public in 2021 at a valuation of $10 billion, according to CB Insights, giving Jay-Z a five-fold return on his investment.</p>
<p>Actress and producer Mindy Kaling tops the rankings with an average Mosaic Score of 883/1,000 for her portfolio companies. Since 2020, Kaling has invested in only seven startups and backed one company that became a unicorn: Maven, a virtual clinic specializing in women's and family health, raised $110 million in a Series D funding round, reaching a $1 billion valuation in 2021. Kaling is ranked 6th on the Celebrity VC Index.</p>
<h4>Investment Trends</h4>
<p>According to data from CB Insights, celebrity investors tend to invest in consumer brands and media-related businesses that align with their personal brand, expertise and influence. These sectors offer high name recognition and market engagement, allowing celebrities to leverage their fame to drive business success.</p>
<p>Kutcher, for example, is an investor in Warby Parker, a direct-to-consumer eyewear startup that went public in 2021. Kaling, Jay-Z and Serena Williams (No. 17) are backing Impossible Foods, a company developing plant-based alternatives to meat products.</p>
<p>The CB Insights report also noted that the most established celebrity investors have turned investing into a consistent business practice. This is evidenced by the fact that the top five celebrities on the ranking have founded their own VC funds in addition to supplementing their personal investment efforts. In addition to Montana's Liquid 2 Ventures and Kutcher's Sound Ventures, these funds include The Chainsmokers' Mantis, Jay-Z's Marcy Venture Partners, and Kevin Durant's (ranked fifth) Thirty Five Ventures.</p>
<p>Other celebrities featured in CB Insights' Celebrity VC Index include professional athletes Michael Jordan (#12), Chris Paul (#13) and LeBron James (#19); actors Robert Downey Jr. (#7), Will Smith (#8) and Leonardo DiCaprio (#18); rappers Snoop Dogg (#11) and Drake (#16); social media personalities Josh Richards (#10) and Jake Paul (#20); comedian Kevin Hart (#14); television host and producer Oprah Winfrey (#9); and DJ Steve Aoki (#15).</p>
<div id=](https://fintechnews.ch/wp-content/uploads/2024/04/10-Fintech-Finalists-for-ventures-2024-Startup-Competition.jpg)
![Prominent VC CEO, Source: CB Insights, May 2024](https://fintechnews.ch/wp-content/uploads/2024/06/Top-celebrity-VCs-Source-CB-Insights-May-2024.png)
Prominent VC CEO, Source: CB Insights, May 2024
Prominent Fintech Investors
A separate study by Fintech Global found that several of these celebrities are also active in fintech, with Durant, The Chainsmokers, Hart and Smith notably among the top 10 celebrities most active in fintech investing between 2019 and 2023, the report said.
Durant's major investments during this period include Goalsetter, a mobile banking app that enables peer-to-peer transactions; Jeeves, which offers open global business accounts; and Titan, an investment firm backed by Smith.
The Chainsmokers have invested in teen banking app Step, which Smith also has a stake in, Indonesian fractional investing app Pluang, and challenger credit card X1 Card. Hart has invested in tax automation platform Fonoa and business banking startup Mercury, while Smith has invested in strategic investment platform Front and social investing platform Public.com.
![Top 10 Most Active Fintech Investors 2019-2023, Source: Fintech Global Research, March 2024](https://fintechnews.ch/wp-content/uploads/2024/06/Top-10-most-active-fintech-celebrity-investors-2019-2023-Source-Fintech-Global-Research-Mar-2024.webp)
Top 10 Most Active Fintech Investors 2019-2023, Source: Fintech Global Research, March 2024
Featured image credit: edited from freepik