San Francisco Chronicle - (Sunday)
S.F. startup banks on rare royal role
Companies, particularly in the tech industry, associating themselves with famous people is not new. Aside from cash infusions, the well known and well connected can act as unofficial spokespeople whose brands and personal magnetism can draw in more money and interest.
Usually that means an investment of money instead of time.
Examples include actor Ashton Kutcher and rapper JayZ making early bets on ridehailing company Uber, now worth tens of millions of dollars. Former Warriors star Andre Iguodala has parlayed his basketball fortune into dozens of tech investments, including in Zoom, the video call company whose stock is worth more than double what it was this time last year.
Rarer than bigname investments is a wellknown person actually taking a job at a company, as Prince Harry, the Duke of Sussex, did this week when he joined the San Francisco mental health startup BetterUp with the title of chief impact officer.
That is something of an unusual role, and the company has said he will be responsible for creating awareness around mental health while expanding the company’s reach and charitable contributions, building on his previous work as a member of the British royal family.
The role of a chief impact officer is akin to “an angel investor who is not investing their economics or money, but time,” said Tarun Kushwaha, a professor of marketing at George Mason University’s School of Business.
Having a notable name, particularly in the technology industry, on a company masthead can open doors beyond what simply touting a famous investor can offer, Kushwaha said.
“Prince Harry in my mind is a brand,” Kushwaha said. “Like every brand, he has strengths and weaknesses.”
His strengths mainly come from his network of connections. When he calls a potential investor or even a prime minister, they are likely to answer, Kushwaha said. “Prince Harry is someone who can enhance the profile of the organization and open doors to capital.”
Using a highprofile person to boost a company’s profile also comes with risks, particularly in the rapidly evolving tech industry. Because the industry is so visible in the media, an investor or executive involved in a scandal can quickly sink a brand, particularly if that person is already wellknown.
“A big personality and big brand could come with big egos and big baggage,” Kushwaha said. “You could have skeletons falling out of their closet.”
That may be worth it for startups trying to elbow into a crowded space like BetterUp. Because tech products and companies are built and sold at such a rapid pace, companies have to find ways to catch investor attention before a competitor does.
Said Kushwaha: “The moment you see a (pitch) deck where you say my chief impact officer is Prince Harry, suddenly you’re going to get a longer attention span.”
“Prince Harry in my mind is a brand. Like every brand he has strengths and weaknesses.”
Tarun Kushwaha, a professor of marketing at George Mason University’s School of Business