Identify yourself with the startup before investing, says Virat Kohli
Virat Kohli said star endorsers should do their homework before investing in new ventures, amid a rise in celebrities buying stakes in startups. «It is a huge decision which cannot be made unless you carry out thorough research and identify yourself with the brand's values, offerings and proposition,» the former India cricket captain told ET in an email interview.
«Riding on this trend has yielded good results for many brands — it is definitely very exciting, but we will have to wait and see how this trend fares.» Kohli signed his latest endorsement deal with French eyewear and prescription lens brand Essilor last fortnight, for a two-year association. The cricketer is one of the highest-paid endorsers.
The past quarter has seen over a dozen deals involving stars such as Kareena Kapoor Khan, Alia Bhatt, Sourav Ganguly, Parineeti Chopra, Katrina Kaif and Sanjay Dutt acquiring minority stakes in mid-sized and emerging startups as well as direct-to-consumer (D2C) companies. This trend «is a huge benefactor to a brand, especially startup brands that need that boost to get a platform,» Kohli said.
The development comes during a slowdown in startup funding from the usual sources such as venture capital firms. For celebrities, the investments are small, and brands get a competitive edge by associating with a known name, besides getting a social media bump through the star's following.
Kohli's own investments in startups include food and beverage D2C brand Rage Coffee, plant-based meat startup Blue Tribe, fashion startup Universal Sportsbiz, high-performance wellness brand Hyperice and Digit Insurance, an insurance-tech firm. The cricketer has 57.3 million followers on Twitter and over 256 million followers on Instagram.Not just
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