Renowned athletes and actors often rake in millions of dollars from their careers. However, their multi-million dollar contracts pale in comparison to the highly profitable brand deals that come with their recognizable names and faces.
“My job is to tell stories,” actor Ryan Reynolds succinctly stated to CNBC.
Telling stories may not be a problem for these individuals, but capturing and retaining audience attention can be challenging. By hiring someone like Reynolds, who is widely adored and recognized by millions, companies can entice consumers to give a few extra seconds of their time to hear their brand’s story.
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It has been reported that Reynolds held a 25% stake in Mint Mobile during its $1.35 billion acquisition by T-Mobile, earning him over $330 million. Additionally, the actor co-founded and sold Aviation American Gin for $610 million, potentially pocketing as much as $122 million from the deal.
Although many would argue that Reynolds is an exceptional investor, he modestly denies this claim. In an interview with Fortune, he stated that he is “no wizard” when it comes to investing and emphasizes the importance of emotional investment in the companies he supports.
This investment strategy is commonly referred to as “valued-added investing,” and Reynolds is undeniably the master of it.
Venture capitalists and angel investors often employ this tactic. They invest millions in start-ups at the early stages and utilize their expertise to boost business growth. Marketing is a significant challenge for these early-stage companies, and investors like Reynolds can leverage their fame and popularity to effectively convey the start-up’s story, ultimately maximizing the return on investment for advertising spend.
This strategy is also gaining traction among venture capitalists, angel investors, and retail investors using equity crowdfunding platforms like StartEngine.
Crowdfunding enables start-ups to raise capital from their customers and supporters, fostering a loyal fan base that aids in the company’s growth. While an individual retail investor may not have a significant impact on a start-up, a collective of thousands of supporters can substantially contribute to brand growth.
Reynolds is already eyeing his next investment, Nuvei Corp. (NASDAQ:NVEI). Since his announcement of holding a stake in the company in April, the stock has plummeted by over 60%, including a recent 40% decline due to poor earnings.
In addition to being an angel investor in numerous start-ups and companies, Reynolds boasts an impressive rising stars portfolio, including 1Password, Wealthsimple Inc., Wrexham Association Football Club, and Alpine F1 Team. He is also attempting to acquire the Ottawa Senators.
Startup investing can be both risky and lucrative, as exemplified by the Nuvei decline and Reynolds’ series of nine-figure exits.
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This article, How Ryan Reynolds Made Over $450 Million From Aviation Gin And Mint Mobile Despite Admitting He’s ‘No Wizard’ At Investing, was originally published on Benzinga.com.
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