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Multimillionaire musician Nick Jonas is a serial investor. You may know him for the Jonas Brothers, Jumanji: The Next Level, or his stint on Les Misérables, but behind the scenes he’s also made a pretty penny from investing in brands like Olipop and Magic Spoon. Now, he reveals to Fortune that he won’t partner with a brand that has a “manufactured” story, as well as his other investment red and green flags.
Popstar Nick Jonas has worn many hats: the heartthrob of the Jonas Brothers, a soft-hearted adventurer on Jumanji: The Next Level, and broadway star from Les Misérables to The Last Five Years. He’s built a multimillion entertainment dynasty, but it doesn’t stop there—Jonas is also a savvy investor with high standards.
“[Investing] is always a collaboration,” Jonas tells Fortune. “There’s an importance to that aspect of trusting the people you’re working with.”
The youngest brother in the Jonas band trio has been growing his estimated $80 million empire for years by investing across fashion, food, and technology. Just four years ago, his net worth reportedly sat at around $50 million in 2021. In that time, Jonas has invested in Olipop, Perfect Moment, True Food Kitchen, and Magic Spoon.
The 32-year-old got behind the $1.85 billion cult-favorite soda line Olipop in 2022, partaking in a $30 million Series B funding round with Camila Cabello, Mindy Kaling, and Gwyneth Paltrow. That same year he also partnered with the viral keto-friendly cereal brand Magic Spoon alongside Shakira, Russell Westbrook, and Odell Beckham Jr. as part of a $85 million fundraising series. Jonas’ other investments include food and drink brands like Saucey, Snackpass, and Innerchef; fashion label Perfect Moment; and tech companies including Ember and Mercury.
While Jonas has an incredibly diverse investment portfolio, not every business catches his eye and makes the cut. When it comes to choosing where to invest his money, the entertainment mogul looks at the people at the heart of the operation, and for a company story that captures his attention.
Jonas declined to confirm his net worth to Fortune.
Why Jonas won’t buy in without a convincing story
As an investor, you’re not just backing a great business idea or product—but also the person who came up with it. It’s why Jonas says founders have to have convincing backstories for him to invest. If he catches a whiff of anything phony, he slams his wallet shut.
“I look at operators,” Jonas says. “I think that ideas are obviously an enormous part of what makes investing in something appealing or interesting, but most importantly, [it’s] who the operators are.”
“If there’s not a great story there, or if it feels manufactured, then it’s harder for me to really lean in.” The Jonas brother says that it’s an investment red flag.
Why? For investors or adoring fans to get hooked on an idea, they need to be sucked into the universe of what’s being sold, and understand what the founder is already improving upon. For example, Olipop and Magic Spoon gained cult followings from promoting healthy junk-food alternatives with a whimsical twist as health-conscious Americans were stuck with boring, nutritious brands.
“Either in the music and entertainment side or an investment, a founder story is really important and I think it often gets overlooked,” Jonas explains. “Sometimes ideas lead the way, but [it’s important to] explain where that came from and why the product is meaningful—not just to the person you’re selling it to, but to the individual themselves.”
The superstar likes to be personally involved in ventures he backs
In addition to a compelling backstory, Jonas needs to trust the people behind the operation. Without that, a business relationship can fall flat—which matters more to Jonas than perhaps other investors, because he plans on keeping in touch with the founders he backs.
“When I can sit in a meeting and really have that quick trust and investment in the individual or the team, it really helps bring me the comfort that I need to step up in a meaningful way.”
And that mutual respect goes both ways. While Jonas holds high expectations for the people he invests in, he also expects to be held to the same standards back. There may be some brands who don’t want investors to be as involved as Jonas wants to be, but they won’t get far with the pop superstar.
“I also try to be the kind of operator that people want to be in business with. That’s not just on venture opportunities and investments, but also as a collaborator on the creative side,” Jonas says. “Showing up to a songwriting session or to the theater each day, coming with my very best A-game, instills a level of trust in me from my collaborators and partners.”
“I really look at that as an important and meaningful piece of the puzzle.”
This story was originally featured on Fortune.com
