Influencers take up new roles, this time as angel investors 

After working with startups to create brand content, influencers are taking up a new role as angel investors, The Economic Times reported on March 3. Influencers are investing anywhere between Rs 2 lakh to Rs 20 lakh in early-stage funding rounds.

Influencers are actively investing in direct-to-consumer brands and fintech startups. After years of marketing products for such firms, influencers think it’s wiser to be part of the startup ecosystem as investors.

Social media influencer and standup comic Tanmay Bhat recently announced an investment in Bengaluru-based social platform Qoohoo. Bhat is also an angel investor in investment-tech startup Smallcase. Another such influencer is Ranveer Allahbadia, who recently invested in Ready Set Jet, an American beauty brand.

It is common for celebrities to turn investors into brands that they endorse.

Unlike celebrities that often end up investing in companies at a later stage, “creators keen to invest in the angel round are able to give a founder honesty and clarity from day zero,” Vimal Singh Rathore, co-founder of Qoohoo told the publication.

Experts, however, believe that angel investing is a long-term game and influencers, who are paid upfront, will need to change their mindset. Influencers will also have to build a portfolio of 10-15 companies in order to expect returns as many bets are likely to fail.