Celebrity Endorsement Equity
Transcript of Celebrity Endorsement Equity
SIMONE CIMMINELLI MD [email protected] +44 (0) 759 7685011
z Celebrity Endorsement Equity
SIMONE CIMMINELLI +44 (0)7597685011 [email protected]
Executive summary.
Startups are the future. “New and young companies are the primary source of job creation in the American economy”*. As we all know, more and more individuals are investing in startups. Shares of early stage companies are a risky asset class that can generate impressive returns. Startups are becoming the center of innovation and job creation. This trend is expected to consolidate in the next years. Celebrities can “buy” shares paying with their visibility. Some celebrity had already invested directly in startup. The major part of them had invested paying a sum of money in change of equity. Recently, some smart business-oriented celebrities had enrolled in “celebrity endorsement per equity”. They had gain shares in exchange of product or service endorsement. Some of them have achieved huge returns. In USA this phenomenon is happening now! This strategy is already implemented in USA from 2010. Many celebrities such as Tiger Woods, 50 Cent, have proven that is possible catch opportunities to gain money without investing any money. The deal is simple, celebrities sponsor the product through social networks and in exchange they get a percentage of ownership of the startup.
May 22, 2015 [email protected]
Source: * Forbes http://www.forbes.com/sites/stevedenning/2014/10/29/the-surprising-truth-about-where-new-jobs-come-from/
| 3 More and more celebrities are using their visibility to obtain shares of promising companies
May 22, 2015 [email protected]
CELEBRITY ENDORSEMENT PER EQUITY
No financial costs involved Potential huge returns Limited risks involved
| 4 What is Celebrity Endorement per Equity?
May 22, 2015 [email protected]
CELEBRITY ENDORSEMENT PER EQUITY
In certain stage, young companies are raising money in exchange of equity to support their marketing strategy. When they raise the money, they than invest in marketing and PR in order to gain visibility to their products or service. The endorsement per equity give the opportunity to streamline the process. Celebrities can offer their visibility,(e.g. their followers base) in exchange of equity. Testimonial contracts are nothing new. Getting paid in equity it’s betting in the success of the company with the possibility to gain a substantial up side.
INVESTOR STARTUP
CELEBRITY STARTUP SOCIAL NETWORK & MEDIA
Celebrity Endorsement per equity
Traditional method
$
Equity
$
Visibility
Visibility
Equity
SOCIAL NETWORK & MEDIA
Visibility
| 5 Celebrity already in the loop of endorsement
May 22, 2015
CELEBRITY ENDORSEMENT PER EQUITY
Tiger Woods Kim Kardashian 50 Cent Lil Wayne
| 6 FUSE powered by Tiger Woods
May 22, 2015 [email protected]
CELEBRITY ENDORSEMENT PER EQUITY
Fuse Science, Inc. (Fuse Science) is a consumer products company listed in OTC market with a market cap of $ 144,000, (DROP:OTCQB). The Company’s Fuse Science technology is designed to accelerate conveyance of medicines or nutrients. Its products, are PowerFuse, ElectroFuse.
Return: + 400%
“Fuse Science, a stock with 230 millions shares outstanding. The stock soared from 30 cents to the $1.20.”
| 7 SHOEDAZZLE powered by Kim Kardashian
May 22, 2015 [email protected]
CELEBRITY ENDORSEMENT PER EQUITY
$40 Million raised
Kim Kardashian cofounded ShoeDazzle back in 2009, when its business model was fairly innovative: Subscribers paid $39.95 each month for a new pair of shoes, as "recommended" by Kim herself .
ShoeDazzle is an online fashion subscription service based in El Segundo, California. Each month the company debuts a selection of shoes, handbags, jewelry and provides its members with a showroom curated to their indicated fashion preference.
| 8 Vitamin Water powered by 50 Cent
May 22, 2015 [email protected]
CELEBRITY ENDORSEMENT PER EQUITY
Shares value when 50 cent received the shares: $5 Million
Exit (Deal value): 100 Million $
Return: +2000%
Energy Brands, also doing business as Glacéau, is a privately owned subsidiary of The Coca-Cola Company based in Whitestone, New York City that manufactures and distributes various lines of enhanced water. Energy Brands is owned primarily by Bikoff, employees, and small investors. Rapper 50 Cent obtained a minority share of the company as part of an endorsement deal in the company.
| 9 WIZE&OPE powered by Lil Wayne
May 22, 2015 [email protected]
CELEBRITY ENDORSEMENT PER EQUITY
Wize & Ope has sold nearly 200,000 watches since 2011 and is set for major expansion of its distribution in Asia ahead of the U.S. launch with Wayne.
My personal style, as well as my everyday lifestyle, has always been about individuality and being open minded. – Lil Wayne, October 15th 2013
Wize&Ope is a company born as a producer of fashion gummy watch founded in French in 2008. It has enlarged its business with sunglasses production. When Wiz&Ope co-founders decided to expand in the U.S.A. they made a deal with Lil Wayne. In exchange of his image, the company offered Wiz&Ope shares.
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