Kim Kardashian goes into venture capital

Once again Kim Kardashian faces a recurring dilemma, be it because of her image or her business.

NewsEditor
NewsEditor
19 September 2022 Monday 10:00
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Kim Kardashian goes into venture capital

Once again Kim Kardashian faces a recurring dilemma, be it because of her image or her business. Does it fit or does it not fit?

The businesswoman emerged from reality television caused a stir last May, on the red carpet of the New York Met gala, by donning the dress that the legendary Marilyn Monroe exhibited in 1962 when she sang Happy Birthday to President John F. Kennedy. The mythomaniacs accused her of having committed an aberration and of violating her good taste. There were those who even assured that her volume did not fit well and that it had caused damage to that historical garment.

The seams seemed damaged. Now it is the investment experts who doubt the opportunity for Kardashian to launch her company to manage venture capital. This business is based on seeking investment opportunities with the potential to transform companies or participate in their shareholding.

Another leap forward for the multifaceted celebrity, who still fills the gossip pages as he promotes a cryptocurrency of dubious legality.

Its new tool is called SKYY Partners and will focus on investments aimed at the consumer products, hospitality, luxury, digital commerce and media and entertainment sectors. She will be accompanied, as co-founder, by Jay Sammons, a former partner of the Carlyle Group, in which he directed the consumer investment section, and by his mother, Kris Jenner, who will act as a partner, in addition to continuing to manage the family projects in which they work. board the members of the media saga, known as "the Kardashians".

Perhaps the most popular of the entire clan, Kim rose to global fame for her appearances on The Kardashians show, and its predecessor, Keeping up with the Kardashians. Many experts consider that these shows represent the consecration of trash TV, but it has allowed her to forge an economic empire in recent years.

Skims, the underwear and apparel business it started in 2019, was valued at $3.2 billion as of early 2021. The company raised $240 million then in a funding round led by Lone Pine Capital.

As Kardashian explained to The Wall Street Journal, SKYY plans to make its investment debut later this year. Neither the flag name of this new company nor Sammons specified the size of that fund.

While some curiously observe their interest in this business niche, analysts allude to the fit, to whether this is the time to embark on a company of this type. They see it especially rare. Just a few months ago, Sequoia Capital, one of the most followed hedge funds as a benchmark, unveiled a campaign – “Adapt to resist” – in which it warned that this is a “melting pot period”, of complications on the horizon.

Financing was easier to come by at the time of the pandemic thanks to the monetary policies of the US government. However, Sequoia stressed that money is more expensive today, and more so from next week when the Federal Reserve raises interest rates for the fifth consecutive time since March to attack inflation. This means that for anyone, be it an investor or a start-up, it will be more difficult to raise capital.

But SKKY does not give up. "Thanks to the investment experience of both founders and their ability to create large businesses in the field of consumption and media (...) the firm will make minority investments in growth markets," detailed a statement released by the company. “We will be the next generation media and consumer private equity firm,” Kardashian tweeted.

Close the circle. After stimulating spending, he offers financial aid. Her endorsement is her stamp, although her resume does not fit the aura of the Marilyn myth.

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