Is the Uber IPO a Windfall for it’s Celebrity Backers? Think Beyoncé, Kutcher, and Paltrow!
Actor Ashton Kutcher’s investment in Uber made him one of the biggest celebrity investors out there. The star, and music manager Guy Oseary, invested $500,000 in Uber, starting in one of its first rounds. Kutcher’s bet, helped make him a start-up star. But Kutcher was not the only big name to invest in Uber’s business, a convergence of Hollywood and technology that co-founder Travis Kalanick’s pursued for unusual sources of capital and the cultural influence that would follow. A-listers like Oliva Munn, Gwyneth Paltrow and Jay-Z confirmed having invested in Uber, joining celebrities like Beyoncé to Jared Leto to Leonardo DiCaprio, whose bets will pay off soon as Uber starts trading in one of the largest tech IPOs in history.
So who is in on it?
Some big names are crowing about sizeable returns. Cyclist Lance Armstrong, who paid millions to settle legal issues related to taking performance-enhancing drugs, said that it saved his family. Armstrong was among the few celebrity investors like Kutcher who invested in Lowercase Capital fund managed by billionaire Chris Sacca. Sacca, who crossed over to Hollywood and appeared as a judge on Shark Tank, was once a close friend of Uber co-founder Travis Kalanick and invested in its first funding round and many rounds thereafter. Armstrong reportedly invested $100,000 into Sacca’s fund in 2009 but declined to say just how much that ballooned to. Experts estimate that a $100,000 investment would have easily made him about $20 million but Armstrong declines to comment.
Others were early investors too such as Jay-Z and music Mogul Jay Brown who invested in Uber’s Series A deal in early 2011. Uber just operated in San Francisco and the company was valued at $60 million. Depending on investor demand, and Uber’s IPO prices, the valuation could reach $86 billion. Most celebrities invested after Uber’s next funding round in 2011.
Trying to grow their money
One lead investor with strong ties to Hollywood introduced people, like Munn, to the company. Kalanick, who was Uber’s CEO at that time, met Munn and decided she was “legit”. The actress also invested in other Uber-like startups like Wag, a rental dog-walking company. Munn did not mention the size stake she holds, but expressed regret for not investing more. Others like agent Ari Emanuel, actor Edward Norton, and Lawrence Bender, the producer of Kill Bill, were brought in as Uber investors.
It wasn’t all about investments. In 2015, Kalanick even had Beyoncé perform at Uber’s offsite Las Vegas event, using up $6 million of restricted stock units to pay her. Beyoncé didn’t respond to a request for comment, but her 2018 song “Apesh*t” with Jay-Z, possibly refers to the Uber payout with a line saying “pay me in equity, watch me reverse out of debt.” Of course the fact that A-list backers spotted the appeal for a black-car service and on-demand, did help. The idea of ordering a limousine and having it at your beck and call, did make a few early investors back away from the deal. That early insight turned into a powerful investment position on the day of one of the biggest tech IPOs. Ashton called it early as Uber was not actually taking on the taxi companies but was taking on the notion of owning a car. That was crazy and that’s why it retained the velocity and potential.
More inTrade & Markets
-
The 4 Optimal Times to Consider Rebalancing Your Portfolio
Navigating the investment world is like hopping on a roller coaster—ups, downs, twists, and turns galore. Whether you’re a hands-on trader...
November 26, 2023 -
Buying a House? Understand You Are Buying a Liability, NOT an Asset
In the grand tapestry of life goals, owning a house is often stitched in golden thread. It is the culmination of...
November 19, 2023 -
How to Tell If You Are Financially Prepared for Change
So, you are contemplating a big life change, huh? Maybe you are considering relocating to a new city, pursuing a new...
November 9, 2023 -
The Best Foods to Eat Before a Flight
Flying can be an exhilarating experience, but it can also be physically demanding. Long lines, security checks, and cramped seats can...
November 3, 2023 -
How to Spot a Bull Market Return: Signs to Look Out For
When it comes to Wall Street, or the investing world at large, investors and traders dream of catching the wave of...
October 26, 2023 -
Become a Millionaire Before Getting Retired | Fidelity’s Ultimate Retirement Advice
We have all daydreamed about it at one point or another: sitting on a pristine beach with the sun kissing our...
October 19, 2023 -
Rising Real Estate: Why You Might Want to Pause Buying and Rent Instead
Picture this: The sun is shining, there is a gentle breeze, and you find yourself at a crossroads. One sign points...
October 15, 2023 -
New Limitations for Cruise Ship Customers as Demand Rises
Imagine sipping a mojito on the sunlit deck of a cruise ship, surrounded by nothing but the endless blue. That idyllic...
October 5, 2023 -
U.S. Credit Card Debt Exceeds $1 Trillion for the First Time in History
The average American consumer carries a credit card balance of approximately $6,000. That is a large sum of credit card debt...
September 28, 2023
You must be logged in to post a comment Login