At TechCrunch Disrupt 2024, two celebrity-founded venture capital funds, Sound Ventures and Mantis VC, took center stage with intriguing discussions on their unique approaches to the investment world. These panels provided insight into how these celebrity investors leverage their status, networks, and strategic outlooks to navigate the tech industry, albeit with vastly different focus areas. While Sound Ventures, co-founded by Ashton Kutcher and Guy Oseary, emphasizes consumer tech and AI, Mantis VC, founded by the Chainsmokers, takes an unconventional turn towards B2B technology and cybersecurity. Here’s a deep dive into the perspectives each fund shared, highlighting how they bring value beyond celebrity.
Sound Ventures: Betting Big on AI and Data-Driven Consumer Tech
Sound Ventures partners Ashton Kutcher, Effie Epstein, and Guy Oseary discussed their billion-dollar firm’s ambitions, particularly in AI and digital health. Having built credibility with high-profile investments in consumer companies like Airbnb, Uber, and Spotify, the team is now expanding into new territories, particularly AI-focused ventures and data-rich sectors like digital health. Kutcher and his team emphasized that the firm’s approach is “founder-first,” focusing on the unique market insights that founders bring to their fields.
One of the standout investments mentioned was Form Health, a company utilizing clinical weight loss solutions for employers and harnessing data to measure efficacy. Epstein highlighted their data-driven strategy, explaining how Sound Ventures sees the real value in the “persistent data loop” generated by Form Health’s proprietary methods. “There’s a real data moat over the company,” Epstein said, pointing out how Form Health’s personalized programs create a distinct and valuable dataset. She emphasized that the firm looks for companies that use “persistent data sets” as part of their competitive edge, a critical factor for leveraging advancements in AI.
Epstein also discussed how she joined Sound Ventures and the unique dynamic she shares with co-founders Kutcher and Oseary. Recalling her initial hesitation to join a celebrity-led firm, she shared, “I was quite skeptical when I heard the names,” explaining how she was eventually convinced by a trusted friend who vouched for Kutcher and Oseary’s integrity. She emphasized the importance of relationship-building within the team, noting that “our relationship is really built on trust and love,” which she sees as a key strength in Sound Ventures’ operations.
Kutcher and his co-founders also discussed the unique role their celebrity status plays, particularly in early access to promising founders and co-investors. They noted that relationships are integral to gaining that “right to win” in competitive deal-making. Oseary likened investing in tech to talent management, recalling his music industry experience working with iconic names like Madonna. “Our job is to find the best talent and help it reach its audience,” he said, emphasizing that their goal with startups is to amplify their reach while adding strategic marketing and brand value.
Mantis VC: The Chainsmokers’ Foray into B2B and Cybersecurity
The Chainsmokers, known for their chart-topping hits and vibrant performances, took the TechCrunch stage to discuss their VC firm, Mantis, which defies conventional celebrity investment strategies by focusing primarily on B2B sectors like cybersecurity and SaaS. In a panel with Dan Lorenc, co-founder of Chainguard, Mantis partners Alex Pall and Drew Taggart explained that they chose to veer away from consumer brands to avoid becoming “the QVC of venture.” Instead, Mantis is targeting industries where they are often outsiders, which has shaped their reputation as scrappy, dedicated investors willing to go the extra mile to earn their place at the table.
The Chainsmokers shared a compelling case study with Chainguard, a cybersecurity startup that has become a cornerstone of their portfolio. Pall recounted how the team initially struggled to build brand credibility in cybersecurity, an industry where celebrity influence holds little sway. However, they took a hands-on approach, working closely with Chainguard to connect them with decision-makers at Fortune 500 companies, organizing exclusive events like Black Hat dinners, and utilizing their unique network to generate genuine business leads. The Chainsmokers’ commitment to value-add over brand recognition has not only strengthened Chainguard’s market position but has also solidified Mantis’s reputation in the cybersecurity sector.
“Being the sixth man on an all-star team, rather than the main player on a mediocre one, is what we’re aiming for,” Pall explained, likening their role to that of a support player who steps in to make the big plays when needed. Rather than trying to replace established VCs like Sequoia, Mantis aims to be a complementary asset, providing unique resources that only the Chainsmokers can offer.
The Celebrity Factor: How Each Fund Makes It Work
Both Sound Ventures and Mantis benefit from their founders’ celebrity, though in different ways. Sound Ventures leans into its founders’ star power to attract top-tier deals and gain early access to emerging technologies. Mantis, on the other hand, uses its entertainment industry connections to open doors in B2B spaces where credibility and value-add are paramount. Taggart and Pall’s insistence on “outworking everyone else” on the cap table is an example of how they’ve flipped the narrative around celebrity VCs by prioritizing substance over surface.
These discussions illustrated how celebrity-founded funds are no longer just a passing trend. They’re actively reshaping venture capital, proving that with the right approach, fame can be a valuable asset rather than a limiting factor. For Sound Ventures, this means leveraging data and AI to push the boundaries of tech. For Mantis, it’s about diving deep into the less-glamorous but highly impactful realms of cybersecurity and SaaS.
TechCrunch Disrupt 2024 showcased that these celebrity VCs aren’t just in the game for recognition—they’re here to make meaningful contributions to the startup world, and they’re doing so on their terms. Whether it’s the entertainment-driven networking of Mantis or the data-driven AI investments of Sound, these firms are proving that the role of celebrity in venture capital is evolving, and it’s here to stay.
