You may have caught a glance of Justin Bieber on the cover of Forbes‘ Celebrity 100 issue this month, looking like a bewildered kid in his first suit. And then you may have noticed the caption beside him: Justin Bieber, Venture Capitalist. But this is not the most surprising business story of the year, like Forbes claims. Because Justin Bieber is not a venture capitalist.
Technically speaking, Justin Bieber is providing several startups, including hot music startup Spotify, with venture capital, ie. money aimed at facilitating long-term growth. The idea to get Bieber involved in tech investing came from his manager, Scott Braun aka “Scooter,” who decided to wield Bieber’s social media power (Bieber has 21 million Twitter followers and 43 million Facebook fans) to invest in something that spoke to Bieber’s fans: social media. Braun (and Bieber’s money) went on to invest in a number of early-stage tech startups, including Tinychat, Spotify, and Stamped. The Forbes article points out that these investments are not equity-for-endorsement deals: Bieber, like more traditional tech investors, is investing cash. More »