When did entrepreneurship become cool?

I’ve heard this question a lot over the last few years and to be honest, the answer is pretty simple.

Entrepreneurship has proven to be the largest wealth-creation opportunity of our generation.

It has become a new celebrity category alongside rockstars, actors and professional sports people and everyone wants a piece of the pie.

Just ask Ruari Bell, Founding Partner of The Players Fund

"In the past five years, athletes have increasingly recognised the power of their social influence and its value in the business world. Inspired by successful American athletes like Magic Johnson, LeBron James and Serena Williams, British athletes are more aware of the opportunities for startup investing. This shift from serving predominately as brand ambassadors to actively investing has revolutionised the role of athletes, far beyond just their social influence. Their influence and ability to add brand awareness to their investment acts as their competitive edge, rather than their entire value proposition."

The celebrity startup investment game has shifted and it's here to stay.

No longer are celebrities “tweeting for shares” or “posting for equity”. They are becoming meaningful investors with an additional competitive advantage.

In the same way, VCs are fighting to differentiate themselves to win the best deals, celebrities have become competitive on a like-for-like basis with a unique “smart money” offering.

Crowdcube has worked on hundreds of individual deals alongside lots of different celebrities over the years including Usain Bolt, Sebastian Vettel, Richard Branson & Rio Ferdinand to name a few.

But most recently, we took it one step further.

In partnership with James Watt, the co-founder of Brewdog we created a world-first investment programme allowing the public to invest alongside James on exactly the same terms.

James committed ￡1Million of his own cash and invested across 5 winning companies.

The programme was called, The Next Unicorn.

Earlier this month, I sat down with James Watt to learn more about his own investment thesis, why he believes that community is a fundamental element when building a brand and his ambitions for the programme after its first successful cohort.

What's the most challenging thing about starting a business in 2023?

The current economic situation, in terms of what’s going on in the banking sector and the general state of the economy, means it’s never been more difficult for new businesses to raise finance.

What do you look for when picking a startup investment?

For me, it’s so important that a start-up shows itself to be a force for good. I look for businesses with a purpose and a clear mission - ones which want to do good things from sustainability or an ESG perspective. I am pretty sector agnostic, but I just want to help people on their journey.

I’d also say that I consider businesses based 25% on the idea, 75% on people. I’m always hoping for a product that is innovative, disruptive and different, but I’m looking for people with tenacity, resilience and just a huge amount of passion for what they are trying to do.

What's the one key thing you must consider when building a community around your brand?

Involving a community within a company is a truly special thing, and can bring a lot of positives to any business. Through Equity for Punks, we allowed other craft beer enthusiasts to be a part of our journey and help shape BrewDog into the incredible business that it is today. About a year ago, I also gave ￡100 million of my own BrewDog shares to our team because they absolutely deserve it for their hard work and passion. We are all on the same side, and I want people to have the chance to genuinely be able to share the company’s success.

Why did you pick Crowdcube as your partner for this programme?

Crowdcube is a fantastic platform and one which we have used time and time again for our own business. I think the investment space needs a bit of a shake-up, and it can be quite frustrating for a viewer sitting at home, watching an investment show where it’s just other people making money. Working with Crowdcube in this way allows the process to be better for everyone - from investors to businesses.

You’re passionate about allowing retail investors to access the same terms as you. Why is this important to you??

My own companies have always been built with a sense of community in mind, so I wanted to turn the business investment model on its head. This is not like one of those shows where you watch other people invest their own money in other businesses. Members of the public are able to invest in the Next Unicorn businesses on exactly the same terms as me, making this a truly interactive investment platform.

Why did you launch the Next Unicorn?

I know how tough it is to raise finance for a business, but it’s never been more important for people to start a company. It’s a tough time economically, but small businesses are the backbone of our economy, and job creation is so important. So, I wanted to put something in place that helps people on their journey.

Are you planning to rerun it? If so, will it be bigger and better?!

I would love to do the Next Unicorn again. I love investing, and first and foremost, I’m a huge business geek. It’s what I’m most passionate about. I want to take everything I’ve learned from building a unicorn and help other founders do exactly the same thing. I’ve also learnt a lot about the process of the Next Unicorn competition, so I’m sure any future runs will be even better next time around.

What has surprised you most about the programme?

So many of the pitches have been seriously impressive - possibly even better than I even expected. The process has also thrown up some weird and wonderful elements too. We’ve had goats, and laptops thrown from balconies and I’ve eaten loads of bugs.

Finally, what do you wish you’d known when you started BrewDog that you know now?

One piece of advice I always give based on my own experience of starting BrewDog is recognising that there are going to be setbacks along the way, and accepting that. Having that level of resilience ready to go when you start the process is going to be so important for anyone.

Managing growth is another difficult one - it’s about deciding when to invest. You need to invest for your growth but if you go too early, you build inefficiency, and that can impact your culture. So, it’s just about managing the investment to enable the growth, but not stifle it. It’s such a fine balance because it impacts every part of your business, including finances, culture and customers.

For those of you who saw the programme, what did you think??

For those of you that didn't - here's what you missed!

How can we take it a step further next time? We’d love to hear your thoughts!

Please add your thoughts in the comments below!

See you next time.

JK