The Chainsmokers are planning to invest in start-ups. Alex Pall and Drew Taggart of the world-famous electropop band have launched a venture capital firm called Mantis to back promising start-ups around the world.
And, they are hoping to invest as much as $50 million through the fund in the near future, according to a report in Bloomberg.
Here's all about it.
Venture fund to help promising companies
While Pall and Taggart had already been investing, that was through their personal wealth.
Now, for the first time, the duo is raising a VC fund, something they attributed to the free time stemming from the COVID-19 pandemic.
"This is the first time in eight years we've had the opportunity to kick back and really focus on other things," Pall told Bloomberg.
Family offices have already joined the fund
The Mantis fund launched before the pandemic, but "all the uncertainty" that followed "was definitely intimidating" for parties asked to join the fund, Taggart said.
However, since then, they have managed to collaborate with artists like Halsey and Coldplay as well as family offices for the fund.
They said they will use their network to back companies with a "hands-on investment approach."
Companies that can do well in pandemic being targeted
At the moment, Mantis is aiming to back financial technology, consumer, and media companies that could do well during the current health crisis, given that live-entertainment business is already down.
The firm, to recall, has already invested $10 million in Loansnap, a mortgage lending start-up, in partnership with True Ventures. The duo had also invested in Ember Technologies, a company making temperature-controlled drinkware.
Celebs have long been investing in start-ups
That said, it must be noted that Pall and Taggart are not the first celebrities to invest in start-ups.
Several celebrities, including actor Ashton Kutcher and athlete Carmelo Anthony, have established VC funds, while some others invest as individuals, taking part in larger rounds.
In India, actors Amitabh Bachchan, Akshay Kumar, Priyanka Chopra, Deepika Padukone are among popular celebrity investors.