Women’s health startups are setting ambitious goals these days, and celebrities and their star power are increasingly part of the journey.
Recently, I spoke with a founder of a U.S.-based femtech company who is in the midst of a Series B fundraising round. When asked about their plans for the funding, the founder mentioned their intent to onboard a celebrity advocate—a growing trend in the sector.
Celebrities are increasingly becoming staples in the femtech industry, serving as advocates, investors, and even executives. And indeed their involvement brings not only glamour but potentially also substantial value to startups in women’s health and beyond.
High-profile figures are no longer limited to the red carpet; they are increasingly making their way into boardrooms as well. Night Ventures for example built a entire fund based on an "celebrity endorsement thesis", with its homepage proudly proclaiming: "Our LPs are some of the most famous people on the internet. We help founders navigate new forms of customer acquisition: content, community & beyond.".
And they do have a point. For startups, particularly those in consumer-facing sectors, having a celebrity (aka someone with substantial organic reach) on the cap table can be akin to striking gold.
But does it truly enhance a startup's chances of success? And are there any downsides? 'Well, let’s discuss.
Just a couple of days ago Ashanti and Nelly announced their investment in Proov, while a sexual wellness brand co-founded by Christina Aguilera, Playground, secured additional funding. Justin Bieber and Orlando Bloom have backed male fertility company Legacy, and Amy Griffin along with Gwyneth Paltrow and others have supported fertility unicorn Kindbody.
Evidently having a celebrity or influencer on the cap table is 'a thing' these days, especially given the advertising challenges many startups in the women's and reproductive health space still face.
A celebrity's "Midas touch" can significantly boost awareness, brand recognition, and of course ideally also sales. When a well-known personality invests in a brand, the spotlight that follows can be transformative for startups struggling for visibility in a crowded market, as their involvement not only signals a vote of confidence but can also sway consumers, enhancing trust and encouraging trial of new products. Moreover, the networks that celebrities bring can connect young companies with potential partners, investors, influencers, or other opportunities that can push the business forward.
Sounds pretty great, doesn't it? But as so often: Not all that glitter is gold.
The glitter of celebrity investments can sometimes overshadow the core aspects of a startup andfrom a marketing standpoint there is a significant risk that the product becomes secondary to the celebrity endorsing it. Startups might capture headlines for their celebrity buzz but struggle to refocus public attention on their products or services, which requires talented communicators, who keep their eye on the prize aka customer acquisition and a company's bottom line.
While celebrities provide capital and connections, their goals might also not always align with a startup's long-term objectives and their involvement could be more about personal branding than genuine commitment, which could lead to conflicts of interest and strategic misalignments. Additionally, celebrities are, by nature, public figures whose careers and personas can be somewhat unpredictable at times. Negative press involving them can adversely affect the brand they endorse, as we've seen in the past.
So should startups pursue a celebrity investment or endorsement or not? The answer - as so often - is not a straightforward yes or no.
For femtech startups aiming to make an impact, the right celebrity can indeed be a catalyst for growth. However, it's vital to ensure that their goals align with the startup's and that their involvement does not divert a company from its strategic path.
Particularly in a field as stigmatized as women’s health, increasing public discourse is always beneficial, and celebrities can undoubtedly assist with this. However, a celebrity investor or advocate is no magic pill. It is essential not to overlook the substance beneath the sparkle and to ensure that a celebrity’s involvement supports a startup’s long-term success and values in a profound way.
The right celebrity can shine a spotlight on a startup, but only a true partnership can turn that light into lasting change for both the company and women's health overall. And in the end that is (or at least should always be) the primary goal in our space.
