The world of finance is no longer just a boys' club. A growing number of female celebrities are shattering stereotypes and emerging as powerful forces in the investment landscape. Here are some of the top female celebrity investors making waves, along with the reasons why they matter.
Sarah Kunst, an investor in women focused investment platform Ellevest, explains: "Most celebrities and athletes make far more from their investments and endorsements and 'side hustles' than from their day jobs. That’s especially true as legacy industries still carry prestige but their revenue models are dying. The fame is the springboard into a platform that allows for massive earnings diversification and it’s inspiring to see these women make the most of it."
Reese Witherspoon
Reese Witherspoon is a prime example. The Academy Award-winning actress co-founded Hello Sunshine, a media company focused on content produced by and for women. Hello Sunshine has invested in projects like the popular book adaptations Gone Girl and Wild. Witherspoon's investment strategy emphasizes empowering female storytellers and creating content that resonates with a female audience.
Jessica Alba
Jessica Alba, known for her roles in action films, is another entrepreneur making waves. She co-founded The Honest Company, a billion-dollar business that sells eco-friendly baby and household products. Alba identified a gap in the market for safe, non-toxic products for families and built a successful brand around that concept. Her business acumen extends beyond The Honest Company, as she has also invested in other startups through her company, The Honest Company Ventures.
Serena Williams
Tennis champion Serena Williams isn't just a powerhouse on the court. She's a prominent angel investor focusing on companies run by women and minorities. By directing capital towards diverse businesses, Serena promotes inclusion and empowers underrepresented communities within the investment world.
Rihanna
The iconic singer isn't just about music. Her Savage X Fenty lingerie line exemplifies her keen business sense. Rihanna identified a gap in the market for inclusive lingerie and built a successful brand that celebrates diversity. This success story inspires other aspiring female entrepreneurs.
Sarah adds: "These women are following the money. For far too long women have been used as the promotional faces of companies instead of the investors and executives but they see where the real money is to be made and they’re demanding a seat at the table."
Risks and rewards
These women are important for several reasons. They are role models paving the way for aspiring female investors and entrepreneurs, breaking barriers by proving that investing is not only a male-dominated field and championing diversity by promoting inclusion. There are always risks involved, however.
"If you never fail when it comes to business you’re not trying enough things," Sarah reiterates. "I love to see people try things knowing it’s not a sure thing and being willing to reassess if it doesn’t work. You miss 100% of the shots you don’t take."
Gwyneth Paltrow and Goop
While Gwyneth Paltrow's Goop is a financially successful company, its forays into specific wellness investments haven't been smooth sailing. Goop has been criticised for promoting some health practices and products that lack scientific backing. This has led to public backlash and accusations of exploiting wellness trends for profit. While Goop is a successful business, its investment choices in unproven wellness haven't yielded positive results in terms of public perception.
Kim Kardashian and Kardashian West Brands
Kim Kardashian is a savvy entrepreneur with a successful shapewear line, Skims. However, some of her other ventures under Kardashian West Brands haven't fared as well. Her mobile game, Kim Kardashian: Hollywood, shut down in 2017. Additionally, her perfume endorsements haven't generated the same level of buzz as her shapewear line. While Kardashian remains a powerful influencer, not all her investment choices have translated into long-term success for the associated brands.
The rise of female celebrity investors is a positive trend that is likely to continue. As they achieve success and inspire others, we can expect a future where women have a more significant role in shaping the investment landscape and driving economic growth.
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"There’s so much money to be made by investing. Whether it’s investing in the stock market or in startups, so many women don’t invest their money and they miss out on the ability to vote with their dollars and build wealth. Everyone should be investing, even if it’s just putting a small amount into indexes like the FTSE 100!,” Sarah advises.