Entertainment and Influencer-Centered VC Firm Latest Offering in LOUD Capital’s Nationwide Expansion
LOUD Capital, a Columbus, Ohio-based alternative investment venture capital firm, announces today the launch of Legacy Entertainment Ventures, a company providing venture-focused services to “celebrities” in the music, eSports, and influencer markets. Legacy Entertainment Ventures focuses on leveraging celebrity brands to maximize investments and market impact. Brian Penick, a serial entrepreneur and former professional musician, will be the managing partner for Legacy Entertainment Ventures out of its recently opened New York office. Penick is also the chief marketing officer of LOUD Capital.
Legacy Entertainment Ventures will build private-label venture funds surrounding a celebrity’s name and brand. These funds will focus on the passions and interests that define – as the name of the fund suggests – the client partner’s legacy. While funds will require direct client partner capital, additional investors such as institutional investors and LOUD’s nationwide network of limited partners will have the ability to contribute to celebrity funds. This structure will allow professional investors to buy in to their favorite celebrity brands. Legacy Entertainment Ventures’ mission is to empower client partners by using venture capital as a vehicle to increase their net worth, brand value, and social impact.
Legacy Entertainment Ventures presents an opportunity for client partners as well as their associated industries. While venture and entertainment have coexisted for some time, celebrity investments are often silent with no support or endorsement. Influencers’ most valuable asset is their brand and the impact they have on their audience.
“Aligning a celebrity’s brand to market a product or service – that is, actually being ‘LOUD’ about their involvement – will inherently increase the value of the investment. A celebrity appearance fee from a product placement is great, but the return would be significantly higher if the individual were an owner in that business, had control around the marketing, and had long-term association beyond a single appearance,” says Penick. “This is especially true if those investments target areas of social impact where a celebrity’s fan base aligns. This is personalized impact investing taken to the next level. This is the evolution of alternative revenue for the entertainment industry.”
As an example, Penick notes the rapid growth in the cannabidiol (CBD) market. If a musician were interested in CBD, Legacy Entertainment Ventures would help that celebrity identify the best companies, develop a private-label product around his or her name, and help that company manage the celebrity investment.
The CBD company benefits from the investment, business advisory services, and by leveraging the celebrity brand as a marketing channel. The celebrity benefits from Legacy Entertainment Ventures providing the market analysis, due diligence, and investment services that are necessary to manage a portfolio. Investing capital and becoming a business owner can create long-term value for a celebrity.
“This is exactly why you are seeing celebrities such as Snoop Dogg launch venture funds like Casa Verde Capital, which specifically targets the cannabis industry,” says Penick. “He’s the face of the products and owns a stake in each business. He’s using his influence to sell, which has a positive impact on his position. That’s the true power of leveraging your brand.”
Penick also notes the importance of Legacy Entertainment Ventures for early-stage artists and influencers, as well as eSports athletes.
“It’s never too early to start thinking about financial planning and management. The revenue is harder to control once it starts flowing, and fiscal discipline is unfortunately not as common of a topic as it should be in entertainment,” says Penick. “Young musicians and athletes are focused on whatever it takes to get that number-one hit or game-winning play. Many mistakenly believe they can stay at that level forever. They won’t – and I suggest the ESPN documentary Broke to anyone who thinks otherwise.”
Having a solid financial plan can help celebrities prepare, and implementing that plan early in their careers can put them in a much more comfortable position. Legacy Entertainment Ventures believes that the true value is in a celebrity’s brand and his or her ability to leverage it. Thinking about the bigger picture will allow them to better explore investments, such as venture capital, that present the opportunity for reaping strong returns.
Legacy Entertainment Ventures will be curating content and events which help tomorrow’s celebrities understand how to start planning for their own legacy.
“Providing value for everyone in the entertainment ecosystem – from client partners to their professional teams, regardless of where they are in their careers – is one of the reasons why we are launching Legacy Entertainment Ventures. We want to redefine what ‘venture’ means in entertainment,” says Penick.
LOUD Capital has been empowering entrepreneurs, investors, and partners through venture for several years. “What we are doing with Legacy Entertainment Ventures is to bring that empowerment model of entrepreneurship, education, and venture to the entertainment industry,” adds Navin Goyal, co-founder and managing partner of LOUD Capital. “We are so excited to have Brian on the LOUD team, to have his background as an entrepreneur and as a professional musician, and to lead Legacy Entertainment Ventures as a comprehensive model for building a legacy.”
Legacy Entertainment Ventures is based out of LOUD Capital’s New York office. Legacy Entertainment Ventures is an extension of LOUD’s Legacy Ventures, which focuses on athletes, thought leaders, and people of influence in other sectors.
LOUD Capital is a non-traditional venture firm. The company’s philosophy is to provide value beyond capital, including business development and advisory services, networking opportunities, and more. LOUD positions itself to be an entry into the venture capital community for both investors and entrepreneurs, primarily working with early-stage companies. LOUD also works to provide value to later-stage investors by mitigating risk with early-stage investments and portfolio management.
Legacy Entertainment Ventures similarly positions itself with the entertainment industry. Penick was an international touring and recording drummer for 12 years, and has since launched startups and worked as an advisor, mentor, and consultant for startups and corporations in the music, tech, and education sectors. Many of Penick’s companies have been focused on providing value to early-stage artists and entrepreneurs. While Legacy Entertainment Ventures focuses on managing celebrity investments, its mission will be to educate and inform early-stage influencers on how to better manage their finances and plan for their future.
About Brian Penick:
Brian Penick, chief marketing officer of LOUD Capital and Managing Partner of Legacy Entertainment Ventures, is a former professional musician, 20-year veteran of the music industry, and a serial entrepreneur with several notable music-focused startups, including Soundstr, which was acquired in 2018 by entertainment music technology company VNUE Inc. Penick will be at South by Southwest EDU this month as a moderator of the “Music Education & Employment: Bridging the Gap” panel, in addition to SXSW where he will be representing LOUD and Legacy as a part of MediaTech Ventures venture capital initiative, Funded House.
About LOUD Capital:
LOUD Capital is an early-stage alternative investment venture capital firm based in Columbus, Ohio. Since its founding in 2015, LOUD has deployed and manages at least $25 million in investments from multiple funds. LOUD Capital is headquartered in Columbus, with offices in Atlanta, Beijing, Chicago, Los Angeles, New York, Raleigh, and Taiwan. LOUD Capital: Entrepreneurship. Amplified.™ Learn more at www.loud.vc
Source: LOUD Capital