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What is Starfund?

22
Feb

What is Starfund?

Saturday, February 22, 2020

Starfund was formed in a world where 40% of all dollars invested in startups end up in the hands of Facebook and Google. Customer acquisition, a core component in the success of every B2C startup has become increasingly competitive and costly as channels become more crowded. We seek companies that can benefit from a relationship with specific celebrities that can create credibility and visibility with relevant audience bases.

We have demonstrated many times that the right celebrity endorsement can turbo charge growth which will then attract retailers, customers, more investors and support the next capital raise in a virtuous cycle. A wrong celebrity endorsement usually creates a significant burden on the company. We are here to ensure our companies do it right.
 
Driven by a team with over 30 years of experience in the celebrity endorsement and influencer marketing spaces, Starfund works with startups in various stages of their life cycle.

1. Pre-seed and seed.

We typically look for early stage companies that have shown initial market fit demonstrated by initial sales, a growing user base or other means. We always want to see a product in the market before getting involved.
We typically invest between $150K and $250K in these companies through our special purpose vehicle and investor syndicates. Valuations will usually hover below $10M. We are happy to lead pre-seed and seed rounds.

We attempt to include a relevant celebrity as an investor or endorser in each round.

2. Series A

We look for more established companies here, with typically >$2M in annual sales run rate. Our investment comes from our fund and not through a syndicate, and as such does not usually involve third parties. We are still in the process of raising this fund. Typical investment ranges between $500K and $1M with funds set aside for follow ups. We do not lead Series A rounds but instead participate in rounds. Typical valuation will not exceed $30M.

We attempt to include a relevant celebrity as an investor or endorser in each round.

3. Later Stage

While we do not currently invest in later stage companies but we do provide advisory services for companies seeking to bring onboard a celebrity endorser at this stage.



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