Renowned athletes and actors frequently amass millions through their careers, yet their multi-million-dollar contracts often pale in comparison to the substantial brand deals linked with their recognizable names and personas.
Actor Ryan Reynolds remarked, "My job is storytelling." While narrating one's narrative generally poses no challenge, capturing people's attention can be tricky. Figures like Reynolds, universally recognized and cherished by millions, can captivate consumers for those crucial additional moments required to convey a company's tale.
Before 2016, it was illegal for retail investors to engage with high-growth startups. Thanks to legal changes, a startup backed by Kevin O'Leary enables anyone to invest akin to a shark.
At the time of Mint Mobile's $1.35 billion sale to T-Mobile, Reynolds purportedly held a 25% stake, reaping over $330 million. Additionally, he co-founded and sold Aviation American Gin for $610 million, yielding him an estimated $122 million from the transaction.
With consistent nine- and ten-figure exits, many would label Reynolds a master investor. However, he disclaims such a title, asserting he's "no wizard" at investing. His secret is "emotional investment" in his owned companies.
This approach, known as "value-added investing," is prevailing, and Reynolds is its reigning champion. It's a strategy embraced by venture capitalists and angel investors who infuse substantial sums into startups during their nascent stages, leveraging their expertise to facilitate growth. Early-stage companies often grapple with marketing hurdles, where investors like Reynolds deploy their stature to convey the startup's narrative, significantly amplifying the return on investment in ad spend.
This tactic is also prevalent among venture capitalists and angel investors like Reynolds and is gaining traction among retail investors through equity crowdfunding platforms like StartEngine. Crowdfunding empowers startups to secure capital from their backers, cultivating a loyal customer base that bolsters growth.
While a single retail investor might not wield substantial influence over a startup, a collective of thousands can truly elevate a brand.
Reynolds has already targeted his next venture: Nuvei Corp. (NASDAQ:NVEI). Since revealing his stake in April, the stock has plummeted over 60%, including a recent 40% dip due to poor earnings.
He's also an angel investor in multiple startups and enterprises. His burgeoning portfolio encompasses 1Password, Wealthsimple Inc., Wrexham Association Football Club, Alpine F1 Team, and a bid to acquire the Ottawa Senators.
Startup investing is a mix of risk and reward, exemplified by the Nuvei decline and Reynolds' string of nine-figure exits.