New York-based Animal Capital has raised $33 million for its third venture fund, more than doubling its prior $13 million and $16 million funds, as celebrity-backed investment firms eye early-stage technology markets.
The new fund attracted commitments from a mix of entertainment, sports, and technology leaders including Paris Hilton, Christina Aguilera, Mark Wahlberg, James Corden, MrBeast, Pete Davidson, Kevin Mayer, Justin Kan, Gary Cohn, Rich Miner & Taylor Fritz.
Animal Capital invests in U.S.-based technology startups focused on improving consumer experiences, building on a portfolio that includes high-growth companies such as Whatnot, Colossal Biosciences, Whoop, Whop, and Underdog Sports.
While celebrity networks struggle to consistently generate top-tier venture returns by banking on fame alone, they can dominate early-stage deal flow, especially when paired with institutional venture capital infrastructure, as their star power serves as a marketing anchor.
On one hand, founders often seek relationships with high-profile celebrities to accelerate customer acquisition and reduce marketing costs, since their value extends beyond capital, providing cultural influence and audience reach. Celebrity networks often span entertainment, sports, and digital media ecosystems, giving the firm access to emerging consumer technology, gaming, and wellness companies to add to their venture pipeline.
On the other hand, celebrity investing has evolved from a branding exercise to a valuable part of the startup ecosystem, as entertainers, athletes, and digital creators deploy their influence to help new companies accelerate their brand awareness.
As a result, several celebrities have established a positive influence in the market for identifying breakout businesses, even before they reach mainstream prominence. Ashton Kutcher’s Sound Ventures, for example, dedicated $240 million to generative AI in 2023. Three years later, a leaked OpenAI payoff table showed Sound Ventures’ $30 million position had risen to roughly $1.3 billion at the company’s $852 billion valuation.
In a 2020 interview, Kutcher said, “One of the critical tests that I try to run when I’m sitting across from a founder is ‘Can you sell me your idea? — If you can’t sell me, how are you going to sell your first hire, your second hire, your third hire? How are you going to create the capacity for the rest of your team to sell those next hires?”
As venture investing becomes increasingly competitive, celebrity investors who are capable of combining cultural relevance, consumer insight, and access to influential networks are emerging to play a valuable role in funding rounds, particularly for early-stage startups.