Acting may be their day job, but plenty of actors build successful businesses away from the film and TV studios.
Take “Two and a Half Men” star Ashton Kutcher, who co-founded the venture capital fund A-Grade Investments in 2010 and has also invested in esports. Did you know Robert De Niro co-owns a group of high-end Japanese restaurants? Or that Jessica Alba founded a lifestyle company that was once valued at more than a billion dollars?
Below is a look at why actors pursue projects outside their profession, the kinds of ventures they’re choosing and some of the most successful examples.
Why actors look beyond acting
Hollywood actors can make serious money on screen, but financial advisors encourage them to build several sources of income rather than relying on acting fees and endorsements alone.
They’re thinking long term. A star can be in demand one year and out of favor the next, so they want assets that grow in value over time. Fame also opens doors to venture capital deals that ordinary investors rarely get access to.
Actors can use their fame to reach audiences most founders can’t, which helps their projects succeed. Many also use their ventures to support causes they care about, such as diversity, sustainability and wellness.
Where actors are investing
Actors are clearly listening to their financial advisors and building a nest egg for the future. So where is the money going, and what are they working on when the cameras aren’t rolling?
Investment firms
A lot of actors are thinking bigger than just starting up a business such as a clothing line or a range of perfumes and are building venture capital and private equity firms. These firms raise money, hire expert investment professionals, build portfolios and adopt a long-term approach to investing. Ashton Kutcher, as mentioned, is one example of a Hollywood megastar who has gone down the investment firm route. Gwyneth Paltrow, who co-founded Kinship Ventures, is another.
Tech
Tech, especially startups, is another space attracting celebrities. Ashton Kutcher was an early investor in Skype, which Microsoft bought for $8.5 billion in 2011. He has built a reputation as a serious tech investor, with A-Grade backing companies such as Uber, Airbnb, Spotify and the car-sharing service Getaround.
Kutcher isn’t the only one. “Titanic” star Leonardo DiCaprio led a multimillion-dollar investment round in Mobli, a Tel Aviv-based photo-sharing app that hoped to challenge Instagram, and actor Tobey Maguire invested as well.
Casino gaming, iGaming and esports
Athletes are usually the stars linked with gaming and betting brands, but some actors are getting involved in casino gaming, iGaming and esports too. Plenty of them enjoy a poker night or a few rounds of online slots in their downtime, but esports has attracted the biggest investments.
“Men in Black” and “The Pursuit of Happyness” star Will Smith, for example, co-led an investment group that put $46 million into Gen.G, an esports organization with teams in the US and Asia.
The most successful types of projects for actors
Investment firms and tech have produced some of the biggest success stories. Emma Watson, best known as Hermione Granger in the Harry Potter films, invested in the London-based biotech startup FabricNano, which works on making industrial production more efficient and less dependent on materials made from fossil fuels.
Food and drink is another popular niche. George Clooney, together with Rande Gerber, Cindy Crawford’s husband, launched Casamigos Tequila. The brand was a hit, earning good reviews and a boost from Oprah Winfrey, and in June 2017 the founders sold it to the British drinks company Diageo for up to $1 billion.
Appearing on screen isn’t the only way actors make a living. Many support their careers and their financial future with side projects, from running investment firms to backing tech companies and launching consumer brands. Fame opens doors that stay closed to most people, and when it’s combined with solid business sense, the results can be impressive.