How to Get Celebrity Investors to Back Your Business

Harvard Business Review

06-05-2025

Companies often dedicate considerable resources to gaining the attention and endorsement of celebrities. When a fashion influencer is photographed carrying a designer handbag, it can turn an obscure brand into a household name overnight. A single endorsement from an A-list celebrity, whether intentional or not, can generate millions in sales and reshape consumer demand. Brands meticulously court pop culture icons, sending them products, sponsoring their events, and vying for a moment of public recognition that could change their business forever. The logic is simple: people trust and follow the companies and brands that influential figures endorse, and in today's media-driven world, credibility and attention is currency.
Yet, while businesses aggressively court pop culture figures, many overlook an equally powerful type of famous endorser: the celebrity shareholder. These aren't actors or athletes—though some may have started in those realms—but rather high-profile investors best known for their business savvy and financial influence. Think Bill Ackman, Warren Buffett, or Cathie Wood. The ideas extend, though, to individuals who made a name for themselves some other way, such as sports, politics, or entertainment, and then leveraged their fame to support investments in specific companies. Their investment decisions don't just inject capital; they shape market perception, elevate brand prestige, and influence other investors.
As researchers and professors who have studied corporate governance and shareholder engagement extensively, we have seen firsthand how influential investors can reshape companies. Our work, published in leading academic journals and business outlets, has examined the role of shareholders in driving corporate strategy, market perception, and long-term performance. We've profiled shareholders, and analyzed what strategic assets different investors can bring to companies. In addition to our academic research, our professional backgrounds—in investor relations and consulting publicly traded companies—have given us practical insights into how companies court and manage relationships with high-profile investors. Moreover, our engagement, over many years, with Executive MBAs who hail from a wide variety of industries has afforded us insight into the CEO's perspective on dealing with shareholders.
Securing the backing of a well-known shareholder can be more valuable than any marketing campaign. But what exactly are the benefits of having a celebrity shareholder? How can companies position themselves to attract these market-moving figures?
Advantages of Attracting a Celebrity Shareholder
A celebrity shareholder can bring five major benefits to fortunate companies that attract their investment. They can:
Provide credibility and market validation.
Celebrity investors bring more than money—they bring reputation. Their investment can signal to the broader market that a company is worth watching. When Warren Buffett's Berkshire Hathaway acquires shares in a company, it's a seal of approval that often leads to increased institutional interest and retail investor excitement.
This can be especially important for companies that are trying to recover from corporate scandals, product recalls, or performance downturns. For instance, when Bill Ackman's Pershing Square invested in Chipotle in 2016 following the company's food safety crisis, it was a turning point. Ackman's investment was seen as a vote of confidence, helping to restore faith in the brand and setting the stage for its subsequent recovery and stock price surge.
Sway other shareholders and stakeholders.
The involvement of a high-profile shareholder can create a ripple effect. Institutional investors who may have been on the fence often follow the lead of proven market players. Similarly, retail investors, who closely track the moves of successful hedge fund managers and billionaire investors, may jump in, driving stock demand.
Take Tesla as an example. While the company was already making waves in the EV space, the backing of high-profile investors like Ron Baron helped fuel additional institutional interest, boosting the company's credibility on Wall Street.
We also found in two separate studies that certain investors can help their portfolio companies attract positive media coverage and better evaluations from rating agencies.
Yield a public relations boost.
Just as a Hollywood star wearing a certain brand can lead to media headlines, a celebrity investor buying into a company generates market attention. Financial news outlets closely track the movements of figures like Carl Icahn and Ray Dalio, and their investments often make front-page headlines.
For example, when Cathie Wood's ARK Invest took an aggressive stance on disruptive tech stocks like Zoom and Roku, those companies received a wave of media and analyst coverage, further amplifying their growth stories. Even negative attention—such as when an activist investor publicly challenges a company's management—can bring visibility and force positive changes. Unilever, for instance, was able to enhance its shareholder returns even as the company's management took flak from celebrity investor Nelson Peltz.
Offer a source of guidance.
The most value-enhancing celebrity investors often aren't just passive shareholders; they actively contribute to company strategy. Well-known activists, while often unwelcomed by most management teams, are a fitting example. While activist investors are not often warmly welcomed by corporate boards and executives, there are reasons some companies could benefit from their involvement, as written by one of us in another Harvard Business Review article. Rather than waiting for a public confrontation, executives and directors can reach out to activist investors to solicit ideas and explore collaborative ways to improve strategy and performance. This approach allows companies to shape the conversation on their own terms, extract valuable insights, and potentially avoid the disruption of a hostile campaign. It's a modern take on the adage 'keep your enemies close'—or, more constructively, turn potential critics into strategic partners.
Facilitates deal-making.
A well-connected investor can open doors to strategic partnerships, M&A opportunities, or even potential acquirers. When a company counts high-profile investors among its shareholders, it can become a more attractive acquisition target or joint venture partner. For instance, when PayPal attracted investment from influential hedge funds in its early days, it helped position the company for its eventual spin-off from eBay and its evolution into a fintech powerhouse.
What Celebrity Shareholders Want
Securing the investment of a celebrity investor isn't easy, but it's not impossible. There are a few key factors that will put your business on the radar of a celebrity shareholder.
A differentiated business.
First and foremost, a company must have a compelling value proposition. Investors like Buffett, Ackman, and Wood are drawn to companies with strong fundamentals, a clear competitive advantage, and a significant growth story.
Take Beyond Meat, for example. The company didn't just create another food product—it pioneered an entirely new category in plant-based protein. That uniqueness attracted investors like Bill Gates and Tyson Foods early on, lending credibility and opening the door to larger institutional investors.
Demonstrated growth potential.
Celebrity investors aren't just looking for hype—they need numbers to back up the story. Remember, for the most part, these are well-credentialed and capable investors. Having clear financial metrics, strong revenue growth, and a path to profitability can make a company more attractive to them.
An example comes from Shopify, which positioned itself as the go-to platform for e-commerce businesses. Its strong financial performance and future growth prospects attracted investment from several well-known institutional powerhouses, helping it become a dominant force in its industry.
Strong governance.
We have found that celebrity investors are particularly attracted to companies that have robust corporate governance structures. High-profile investors need to protect their own reputations and avoid companies that could be vulnerable to questionable practices or unclear reporting. Companies with strong board oversight, disciplined executive control mechanisms, and active shareholder engagement are more likely to attract and retain celebrity shareholders.
Consider, for instance, how Duolingo maintains strong governance through its commitment to transparent shareholder reporting, ethical business practices, and a well-structured board that ensures accountability as the company grows. By maintaining disciplined executive leadership and clear financial reporting, Duolingo has attracted a wide range of high-profile investors who seek stability and long-term value in the rapidly evolving edtech space.
The FAMOUS Approach to Attracting Famous Investors
There are steps executives can take to garner the attention of celebrity shareholders. We like to describe them collectively as the FAMOUS approach to attracting famous investors.
F: Foster transparency and shareholder engagement.
High-profile investors want visibility into company strategy and decision-making. Regularly communicate performance updates, governance changes, and long-term plans to build credibility and trust. Transparency not only reassures existing shareholders but also makes the company more attractive to potential investors. Consistent and open dialogue with shareholders can prevent misinformation and speculation from negatively impacting stock performance. Unilever, for example, has attracted several celebrity investors by consistently publishing detailed sustainability reports and hosting interactive investor meetings.
A: Align strategic goals with shareholder priorities.
Celebrity investors often have particular investment theses. Whether it's a focus on innovation, sustainability or a particular product or market niche, understanding their interests and demonstrating alignment can make your company a more attractive target. Companies should clearly articulate how their mission, operations, and strategy align with an investor's broader interests and vision. Consider the public benefit company Allbirds, which aligns its strategic goals with shareholder priorities by emphasizing sustainability, innovation in eco-friendly materials, and a commitment to carbon neutrality. This approach has attracted a number of high-profile investors who prioritize environmental responsibility and value long-term market differentiation.
M: Manage the message.
High-profile investors attract media attention, and their involvement can lead to increased scrutiny from analysts and regulators. Companies should strengthen their governance practices and ensure they can withstand heightened public and investor attention. The heightened visibility that comes with celebrity investors means that companies must be prepared for increased stakeholder expectations and the potential need for swift, strategic responses to challenges. Peloton, for instance, brought on several high-profile investors but then struggled to manage their message amid a wave of scrutiny over safety concerns, supply chain issues, and fluctuating demand, which were amplified by its high-profile backers and a rapid rise in public visibility.
O: Orchestrate compelling narratives.
Just like their pop culture counterparts, some of the highest-profile investors have built their reputations through stories that elevate them to a revered position, and they find interest in others who can do the same. Companies that use storytelling to position themselves as disruptors or industry leaders can capture the attention of these investors. For example, Airbnb framed itself as a platform that fosters human connection and authentic travel experiences. This compelling narrative of community-driven travel and economic empowerment helped attract high-profile investors in its early days, who saw the company's potential to redefine lodging from the perspective of the everyday individual.
U: Utilize brand power effectively.
Once a celebrity investor is on board, leverage their presence for credibility and media exposure. Encourage strategic public endorsements, co-authored op-eds, and interviews that highlight their belief in the company's potential. Additionally, smaller and mid-sized companies might try to create opportunities for their investors to engage with key stakeholders, whether through board meetings or industry events, further enhancing their credibility and strengthening investor relations.
S: Strengthen relationships with industry influencers.
Getting noticed by a celebrity investor sometimes requires an introduction. Companies should leverage their existing investors, board members, or advisors to make inroads with influential funds or individuals. Returning to Airbnb, consider how the company secured investment from some of Silicon Valley's most notable investors, including Sequoia Capital and Ashton Kutcher. The company's leadership actively built relationships with influential figures in the tech and investment world, which helped fuel its meteoric rise at a time it needed it the most.
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Companies invest significant time and effort in attracting celebrity endorsements from Hollywood, sports, and social media. But for many businesses, an equally important endorsement comes from Wall Street. Celebrity shareholders bring credibility, access to capital, media attention, strategic guidance, and persuasive market power that can dramatically alter a company's trajectory.
Attracting these high-profile investors isn't just about luck—it's about building a business that stands out, leveraging industry connections, demonstrating strong financial performance, and telling a compelling story. Whether it's a strategic investor, a high-profile venture capitalist, or an influential billionaire, securing the right shareholder can be a game-changing move for some companies. The question isn't whether executives should seek out a celebrity shareholder—it's how soon they can land one.