The Red Carpet

After structuring 30+ celebrity equity deals over 4 years at Influencer Capital and watching $2B+ in celebrity-founded brand value creation, I can tell you exactly how to think about celebrity equity. The truth is, there's no magic number. But there is a framework that works. And I'm about to show you why 90% of founders get it catastrophically wrong, and how the 10% who get it right build billion-dollar empires.

The Director's Cut

The $50M Mistake That Changed Everything

Picture this: It's 2021, and a promising DTC founder sits across from a mega-celebrity's team. The brand has $2M in revenue, growing 300% year-over-year. The celebrity wants in. The founder, starstruck and desperate for distribution, offers 2% equity for a few Instagram posts.

The celebrity's manager laughs. "We're looking for 40%, minimum."

The founder panics and counters with 25%. Deal closed. Champagne popped.

18 months later, that founder is in my office, nearly in tears. The celebrity posted twice, showed up to one board meeting via Zoom (camera off), and now owns a quarter of a company valued at $50M. That's $12.5M for two Instagram posts.

"I gave away my company for nothing," he tells me.

But here's the thing, he didn't have to. This disaster was entirely preventable with the right framework.

The Equity Framework That Actually Works

After structuring equity deals between everyone from A-list actors to micro-influencers, I've developed a framework that protects founders while incentivizing celebrities. It's not about finding the "right" percentage. It's about understanding five critical variables that determine success or failure.

🎯 Variable 1: The Fame Multiplier

Not all celebrities are created equal. Here's the uncomfortable truth:

• Mega-celebrities (MrBeast, Kardashians, Rihanna): 20-40% equity range

• A-list celebrities (Reynolds, Alba, Clooney): 10-25% equity range

• Macro-influencers (1-10M followers): 5-15% equity range

• Micro-influencers (100K-1M followers): 1-5% equity range

Why the ranges? Because equity should match influence and access. MrBeast can text Walmart's CEO and get a response in minutes. A micro-influencer might get past an assistant. When MrBeast joins your brand, retailers call you. When a lifestyle influencer joins, you're still cold-calling buyers. That's the difference between 30% equity and 3%. Fame is leverage. The bigger the lever, the more equity it commands.

📊 Variable 2: The Stage Premium

Your company's maturity changes everything:

• Pre-seed ($0-500K revenue): Add 5-10% to base range

• Seed ($500K-2M revenue): Add 2-5% to base range

• Series A ($2-10M revenue): Use base range

• Series B+ ($10M+ revenue): Subtract 5-10% from base range

Why pay more for early involvement? Because celebrities joining pre-revenue startups are making a real bet on an unproven concept. But joining after product-market fit? That's like investing in Netflix after it killed Blockbuster. Zero risk, moderate reward. The math is simple: more uncertainty equals more equity. A celebrity who believes in your napkin sketch deserves more than one who waits for your TechCrunch feature. They can't demand pre-seed equity percentages for Series B certainty.

💼 Variable 3: The Involvement Index

This is where most deals fall apart. What's the celebrity actually doing, and what do you actually need? A co-founder who texts you at 2 am about product ideas? An advisor who can get you into Whole Foods? Or an ambassador who posts a couple of times per year? Each commands wildly different equity. I've seen founders give co-founder equity to celebrities who behave like ambassadors. That's a $10M mistake. Know what you're buying before you negotiate the price.

Ambassador (Lowest Equity)

• Occasional posts

• Social media: 4-6 posts per year

• Appears in campaigns

• No operational involvement

• Equity modifier: -50% from base range

Advisor (Medium Equity)

• Monthly involvement

• Social media: 1-2 posts per month, stories, engagement

• Strategic input

• Opens doors/makes intros

• Equity modifier: Base range

Co-founder (Highest Equity)

• Weekly involvement

• Social Media: Weekly organic integration, authentic advocacy, no minimums

• Product development input

• Active in major decisions

• Uses products religiously

• Equity modifier: +25-50% from base range

The difference is stark. Jessica Alba's role at Honest Company was attending board meetings, approving every product, building the brand from zero. That's worlds apart from Alix Earle's Poppi deal. Alba was employee #1, working 40-hour weeks. Earle posts about her favorite flavor between Miami trips. Both valuable, both legitimate. But one deserves 20% equity, the other deserves 2%. Understanding this distinction before you negotiate will save you from giving co-founder equity for ambassador work. Match the equity to the effort, not the follower count.

🚀 Variable 4: The Performance Multiplier

Smart founders tie equity to performance. Here's my battle-tested vesting structure:

• Year 1: 25% vests for showing up to launch 

• Year 2: 25% vests for hitting revenue targets

• Year 3: 25% vests for sustained involvement 

• Year 4: 25% vests for exit/growth metrics

No performance? No equity. One celebrity collected 5% equity and disappeared after the launch party. Never again. Include clawback provisions. If they ghost you, you get the unvested shares back. Make them earn every percentage point. The best part? Serious celebrities love this structure. It separates the builders from the leeches.

🎭 Variable 5: The Authenticity Algorithm

Want to know why most celebrity partnerships fail? They're acting, not advocating.

The celebrities who drive real value already love your product:

• Alix Earle had Poppi in her fridge before she had equity

• Roger Federer chose On Running before they chose him

• Ryan Reynolds was Aviation Gin's customer before becoming its owner

I watched a beauty brand give 5% equity to a celebrity who'd never used their products. First post: "Just discovered this amazing brand!" The comments section destroyed her. The partnership lasted four months.

Authenticity modifier: +100% success rate

If they won't buy it with their money, they won't sell it with their influence.

Real Deals, Real Numbers

Let me show you how this plays out with actual examples:

Deal 1: The Perfect Match

• Celebrity: 5M followers lifestyle creator

• Company: Series A wellness brand ($5M revenue)

• Role: Active co-founder

• Calculation: Base 10% + Co-founder modifier (+3%) = 13% equity

• Result: $330M exit in 3 years, everyone wins

Deal 2: The Disaster

• Celebrity: A-list actor

• Company: Pre-seed fashion brand

• Role: "Co-founder" (actually just ambassador)

• What they gave: 30% equity

• What they should have given: 2-5%

• Result: Celebrity ghosted, founder diluted to nothing

Deal 3: The Surprise Success

• Celebrity: 500K follower micro-influencer

• Company: Seed-stage CPG brand

• Role: True co-founder (in office weekly)

• Equity: 8% (seemed high for follower count)

• Result: Her authenticity drove $20M in sales

The Conversations Nobody Has (But Should)

Before you offer a single share, ask these four questions:

"Walk me through your last Tuesday. When would you naturally use our product?"

If they can't answer authentically, run. Real co-founders live the product. Mercenaries memorize talking points.

"What other equity deals have you done? How involved were you really?"

Past behavior predicts future performance. If they ghosted their last three deals, you're next.

"If we gave you no equity but $2M cash, would you still want to work with us?"

This reveals if they believe in the vision or just want easy money. True co-founders often invest their own capital.

"What happens when the next shiny opportunity comes along?"

Have the awkward conversation now, not later. Include non-competes and minimum involvement clauses.

The New Playbook for 2025

The celebrity equity game has evolved. Here's what's changing:

Old way: Throw equity at any celebrity with followers 

New way: Partner with celebrities who are already customers

Old way: One-size-fits-all equity packages 

New way: Sophisticated structures tied to involvement

Old way: Hope they post about you 

New way: Contractual minimums with clawbacks

Old way: Celebrity as marketing channel 

New way: Celebrity as actual co-founder

My Non-Negotiable Deal Terms

After 4 years and 30+ celebrity equity deals, here are my requirements:

1. 4-year vesting minimum (1-year cliff) 

No equity without time commitment.

2. Performance milestones tied to each vesting period 

Year 1: Launch metrics 

Year 2: Revenue targets 

Year 3: Engagement requirements 

Year 4: Exit preparation

3. Involvement minimums 

Monthly check-ins at minimum. 

Weekly for "co-founders."

4. IP assignment 

Their name/likeness for the term. 

No surprises later.

5. Non-compete during involvement period 

No competing brands in the category. Period.

6. Clawback provisions for non-performance 

Ghost us? Lose unvested equity. Damage the brand? We can buy back vested shares.

Skip these steps at your own peril. I've seen too many founders learn this lesson at $10M+ valuations.

The Celebrity Equity Preparation Kit

Before your next celebrity conversation, prepare these five documents:

1. The Involvement Matrix

• Define exactly what you need (weekly hours, specific responsibilities)

• Create three tiers: Ambassador, Advisor, Co-founder

• Attach equity ranges to each

2. The Performance Triggers

• Map specific achievements to equity releases

• Include social media metrics (posts, engagement, conversions)

• Set revenue milestones tied to their involvement

• Create consequences for underperformance

3. The Authenticity Test

• Document their organic usage (screenshots, dates)

• Track their category credibility

• Measure their audience alignment

4. The Comparison Sheet

• List 5 similar celebrity deals with outcomes

• Include equity given vs. value created

• Highlight what worked and what didn't

5. The Walk-Away Number

• Your maximum equity offer

• Your minimum involvement requirement

• Your non-negotiables

Armed with these, you're negotiating like a pro.

Not hoping for the best.

The Bottom Line

Here's the truth that took me 30+ deals to accept: The difference between a successful celebrity equity deal and a disaster isn't the percentage, it's the preparation.

The founders who win? They walk into negotiations with their framework locked down. Non-negotiables defined. Structure decided.

The founders who lose? They figure it out in the room.

So before you take that celebrity meeting, stop asking "How much equity should I give them?"

Start asking "What role are they actually filling?"

Because once you're sitting across from their manager, it's already too late to figure that out.

The 10% who get celebrity equity right aren't smarter. They're just more prepared.

And preparation beats fame every time.

The Mic Drop

HotStart VC’s Backstage Pass

Connor Flannery Joins HotStart VC as Venture Partner

Creator Connor Flannery just joined HotStart VC as a Venture Partner, bringing over a decade of content creation experience, 4M followers, and 200M+ monthly views. But this isn’t just about the numbers. Connor brings the “creator lens” to VC, spotting cultural trends and audience behavior that traditional investors miss. Alongside his co-founder Charlie Phinney at Pugs Media, he’s helping HotStart VC expand into short-form video content and build a media platform that supports creators launching brands. Read the full announcement post here.

Creator-Led Libido Gummies or Confidence Candy Line

We’re in contact with a major creator looking to launch their own line of libido gummies or confidence-boosting candy, similar to Tabs Chocolate. If you know a brand in this space interested in partnering on a co-branded product line with a large creator, let’s connect.

Aurezzi Now Available on Emirates Airlines

HotStart’s portfolio company Aurezzi’s premium 24K Gold oral care products are now offered aboard Emirates Airlines, joining Singapore Airlines as the only two elite carriers to feature this luxury brand. Achieving this milestone less than 1.5 years after launch shows strong market validation and solidifies Aurezzi’s role as the category creator in luxury oral care.

Take #6

The celebrity equity game isn't about percentages; it's about structure. Smart founders aren't asking "How much equity should I give?" They're asking, "How do I structure equity so they actually show up?"

I happen to know exactly how to do that ;).

After 30+ deals, here's the truth: Jessica Alba didn't build the Honest Company because of her 20%. She built it because she was vested over 4 years with performance milestones. The celebrity who got 40% and ghosted? No vesting. No milestones. No surprise.

The formula isn't about memorizing percentages. It's about thinking through the variables that actually matter, whether you are looking for a celebrity ambassador or a celebrity co-founder. 

Remember: In a world where celebrities want quick wins, the right structure isn't optional. It's everything.

Welcome to the fame game,

Scott

P.S. Are you a startup looking to onboard a celebrity on an equity deal, or a celebrity looking to do equity deals with startups and need help? Hit reply. Would love to see how we can support.

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About HotStart VC

HotStart VC is launching a new fund to invest in brands founded by celebrities and creators. We’re building the go-to platform for creators and celebrities launching brands, providing capital, strategic support, and the infrastructure to scale.