How Celebrities Invest : Lady Gaga

No doubt Lady Gaga is a woman with many talents. She can often be found touring the world with an earth shattering musical performance or attending award ceremonies with an extremely outrageous and risky outfit. That’s why it shouldn’t come as a surprise that her investment style isn’t any different. You won’t find Gaga investing in fixed interest or government bonds. No far from it. She’s into sexy. She’s into going big. She’s into start-ups.

The pop icon and member of Gen Y started her own social networking site called Little Monsters. The site is a place for all Gaga fans and fabulous misfits to gather, create, share and inspire one another. The network grew to 1 million subscribers within 12 months. The move is somewhat genius as it allows her to connect directly to fans. Facebook and Instagram only allow posts to reach a small percent of followers unless you pay for advertising. This way she can really build a community. In fact last year Little Monsters was voted the best fan base beating Katycats and Beliebers.

Along with Google’s chairman Eric Schmidt she was also an early investor in tech start up Backplane. Backplane or Place.xyz was a platform for creating themed social networks, hence the creation of Littlemonsters.com. The business went on to raise an additional $12 million dollars from major brands such as Coca-Cola and Nike. That’s where things went wrong. People connect with people, not brands. Gaga having her own social network worked because she is as human as the followers. However no one wants to have a connection with a Coca-Cola or Nike. The start-up went into liquidation in 2016.  But when you have a net worth of more than $225m you can afford to take risks on early stage start-ups.

 

 

Image Source: Vogue

Join Our Renegade Wealth Newsletter
Join over 1,000 other investors and get our weekly newsletter featuring news, analysis and tips to improve your investing skill.
We hate spam. Your email address will not be sold or shared with anyone else.

Leave a Reply Text

Your email address will not be published. Required fields are marked *

eleven − eight =