Celebrity Crypto Backers Hit Pause On Startup Deals

Things haven鈥檛 worked out well for promoters of . The company is in bankruptcy, its founder is in jail, and its venture backers have written off the investment.

Celebrities who endorsed the company are also regretting their choice. Beyond the reputational damage and shortfall in expected compensation, they鈥檙e also defending themselves in what could be a costly class-action .

Given this state of affairs, it鈥檚 not surprising to see stars most closely tied to the crypto craze, and FTX in particular, pulling back on their startup entanglements. They鈥檙e investing less, promoting less and mostly staying away from Web3.

Who鈥檚 not doing what

To get a sense of then and now, we used Crunchbase data to compare the investments of several of the most famous names associated with crypto. We focused on FTX promoters to start, which includes sports superstars , , and .

The basketball legend had a fittingly legendary introduction to startup investing. His first known deal was an investment in 鈥檚 1999 Series A, at a reported $100 million valuation. (Google is now worth $1.8 trillion).

O鈥橬eal has subsequently taken part in an eclectic, fitness-leaning collection of investments, including wellness wearable , metabolism tracker , and portable fitness equipment startup . His last reported deal was a lead investment in a $2.5 million September seed round for , an AI-enabled literacy platform focused on helping children learn to read.

As for his role in a 2022 FTX advertisement, O鈥橬eal late last year that he was 鈥渏ust a paid spokesperson for a commercial,鈥� and was not involved with the company beyond that role. He also said he is not bullish on crypto.

The Golden State Warriors star is a prolific investor and promoter, having backed a host of startups and established brands.

Like most celebrity investors, the pace of Curry鈥檚 startup dealmaking was busiest in 2020 and 2021. His investments from that period include rounds for barbershop app , mobile fintech platform , and smart home gym equipment brand .

Curry鈥檚 crypto and Web3 forays included promoting FTX, for which he was reportedly supposed to have received $35 million, per an citing author , who wrote a book about the crypto startup鈥檚 founder, .

Additionally, Curry promoted the NFT collection from . He鈥檚 currently facing for his affiliation with both Yuga and FTX.

But the four-time NBA champion hasn鈥檛 stopped investing. Last spring, for instance, he participated in a Series C for , an app offering consumers savings and access to credit.

Tennis star Osaka is another busy startup backer, with at least seven known investments, per Crunchbase.

While she was an investor in FTX, Osaka has been more active in the food and beverage space. Portfolio companies include nonalcoholic beer brand , high-protein ramen maker , and plant-based chicken purveyor . Outside of the startup sphere, she also has a for more established brands.

Quarterback Tom Brady in 2019 — Tom Brady

Brady participated in financings for at least four startups in 2020 and 2021, per Crunchbase data. The most recent was a 2021 Series B for , a platform for managing trading cards聽 and other nontraditional assets.

The San Mateo, California native has also taken an active role in startups. He is co-chairman and sits on the board at -backed 鈥� which helps athletes and entertainers launch and promote their NFTs. The company has received more than $200 million, .

He also is co-founder of , a sports media company in Santa Monica, California, that provides videos, podcasts, films and social content about athletics. The startup has taken in $63 million in funding to date, .

More recently, the seven-time Super Bowl-winning quarterback has focused his investment sight more on sports than startups. Last year, he purchased stakes in the Las Vegas and sports franchises.

For FTX, Brady was reportedly to receive $55 million over three years to promote the exchange.

Other crypto-promoting celebrities

Other famous names associated with FTX aren鈥檛 known for being especially active in the startup sector. This includes comedian and model , Brady鈥檚 ex-wife.

Meanwhile, several have also drawn rebukes for their crypto entanglements. They鈥檝e also scaled back startup investments in the past couple years.

In late 2022, the with promoting a crypto product from EthereumMax without disclosing the $250,000 payment she received for doing so, resulting in a $1.26 million settlement.

Nonetheless, the reality star is still extremely active in the startup scene. Her commitments include the shapewear line she founded, a gig as chief taste consultant for , and her consumer-focused private equity fund, . Her recent investment forays, however, have not extended to crypto.

To endorse or not

As a noncelebrity, it seems understandable that the opportunity to do paid endorsements would be pretty tempting. Who wouldn鈥檛 want to make lots of money for low-effort social media posts and commercials?

But of course, when trading on one鈥檚 reputation, the last thing you ever want to do is damage said reputation. Celebrities who promoted crypto scams, so far, have mostly emerged without serious harm to their street cred. But the fallout has likely made them more risk averse about future gambits.

糖心视频