Baron Davis had a wonderful career on the court. He was selected to the All-Star Game twice and won two interceptions. After retiring in 2017, he served as an NBA commentator for TNT TV. However, in addition to being a basketball player, Davis is also a low-key top entrepreneur.
From successful basketball player to top venture capitalist
Signing 6 contracts as a player, Davis' total career salary is approximately 147 million, but he does not only make money through salary. Davis is currently the founder of multiple companies, spanning major industries, from sports content platform Sports Lifestyle in Culture (SLiC) to multimedia company UWish. In 2020, when Taiwan Professional Basketball League P. LEAGUE+ was established, CEO Chen Jianzhou It was also publicly announced that Baron Davis became one of the shareholders with the help of the Silicon Valley Taiwanese gang, including New Taipei King CEO Chen Xinsheng. Davis is also one of the shareholders of the East Asian Super League, which will launch a new home and away game system in 2022 and focus on developing content and videos to expand the influence of basketball in Asia.
Davis is a representative of players who invest early and enjoy early. More importantly, he brings precise vision on the court to the shopping mall. The first investment in his career was to buy shares of Vitaminwater. In 2007, Coca-Cola announced that it would buy Vitaminwater for US$4.1 billion. At that time, Davis received very generous compensation. Next, Davis became an angel investor in the online membership retailer Thrive Market in 2014. Thrive Market's performance exploded during the epidemic, allowing Davis to once again demonstrate his successful investment vision. In 2016, Davis participated in the Series A investment of flower delivery company Bloomthat, and its valuation far exceeded the assessment at that time.
Because of his precise vision and diligent research, Davis's main venture capital field is biased towards early-stage investment. In addition to the logic of selecting investment targets, he must have the possibility of profit, and he also hopes to have a positive impact on society and the entrepreneurship of minority groups. , such as investing in the women’s medical cannabis care brand House of Wise in 2021. “I like to invest in start-up companies because these companies have the opportunity to become the next generation of social changers and move the entire society in a better direction.” Davis said, “I rely on investment to become a changemaker and help companies have a greater impact. force."
"As a player, I watched all kinds of teams, strong teams and weak opponents. I was upset, and I was a dark horse and defeated strong teams, so I can understand all kinds of ups and downs." Davis said, "Now I am a serial entrepreneur. , I understand the passion, drive and determination required by new companies, I understand and am willing to take risks, and I can also discuss with these entrepreneurs how to deal with various situations and pressures. I am bold and careful, which is my advantage."
Although Davis' talent as a player was not top-notch, he was quite good at investing and managing wealth. The 43-year-old Davis can be said to be a pioneer in player entrepreneurship. His salary and endorsements as a player were not huge, but he opened up another path through research, investment and entrepreneurship. Davis may be one of the few players who is busier after retirement. He has a busy schedule and budget every season. "I will research about 25-30 companies a season and then invest in 5 companies."
One of the venture capital companies owned by Davis, Business Inside The Game, mainly invests in black people, women, Middle Eastern or Indian people, and LGBTQ+ groups. “My hope is to empower them and use investment to amplify the ideas and will of these minority groups to the majority. People understand each other so that each other's cultures can prosper together." In addition, he also founded a content brand company, Black Santa, to create cross-ethnic animated characters and launch exclusive content and products to achieve the dual purposes of profit and public welfare. "I hope to launch heroes and cartoon characters for African Americans and all ethnic groups, so that people of all colors can identify with each other, unite and entertain each other."
However, in addition to public welfare investments, Davis is also involved in some large-scale commercial mergers and acquisitions or transactions. In 2020, adidas intended to sell Reebok. At that time, an investment team headed by Davis and rapper Master P made a bid.
In addition to some mature business models, Davis is also very courageous to try emerging and high-risk investments, such as Metaverse, Web3.0, cryptocurrency blockchain games and NFTs. For example, Black Santa will issue charity for Christmas in 2021 NFT of nature, and it was sold out in 14 minutes. "In the face of this new technology and field, don't stress, but try to understand and participate. Technology is just a tool, how to use it is the key." Davis said, He believes that the development of Web 3.0 and cryptocurrency is very suitable for professional players with their own voices and creators who are creative but do not like commercial nature. "This is a brand new opportunity, and everyone has the opportunity to participate." In recent years, , including Davis, a content platform with Web3.0 nature such as Overtime and Fireside, all participating.
Davis believes that NBA players themselves have the right to speak and influence, and he is a star. He can build his own brand and earn wealth and fame like other Internet celebrities, but he does not like to do this. "I like to help and give back." , this is the real value to me.” Former NBA player Brandon Jennings believes that Davis is the godfather of Los Angeles basketball. “In addition to playing the ball well, he often returns to the streets to take care of us. He has been giving back, especially It’s my hometown. You can call BD anytime and he will definitely answer the phone.”
Make the NBA an MBA
Davis’ investment enlightenment came from wanting to get rid of the exploitation of the professional player industry. “I felt that I had to be “robbed.” When I was a rookie, I had no idea, so I needed the help of agents and business managers. But after the three-year contract ended, I decided to do it myself." Davis not only broke the mold and did not hire an agent, but also began to think about how to invest in himself, and decided to negotiate contracts and form a team to handle business activities by himself. "I am not afraid of not following the tradition. I am very brave to try and break the status quo. .”
Although Davis was young at the time, he rarely attended the parties, nightclubs, and entertainment and social gatherings favored by young players. Instead, he often appeared at business conferences and annual investment meetings. He met North Carolina Senator Marshall Rauch by chance, and the two met frequently. After getting to know each other through contact, Rauch also became Davis's business coach. "In the first few years of my career, I was very keen to participate in various business situations. I met Marshall. He taught me finance, real estate, stocks, bonds and entrepreneurship, and became my life mentor." "
Although he was young and promising and made a name for himself in the NBA early and entered the All-Star Game, Davis did not just focus on basketball. When the Hornets moved from Charlotte to New Orleans in 2002, Davis also seized the opportunity to actively expand his network, met rappers Lil Wayne and KC Carter, and invested a small amount in their album production. In 2005, Davis joined the Golden State Warriors and began to be baptized by Silicon Valley, which brought his thinking and strategies to a new level and laid the foundation for him to become a successful investor.
The 43-year-old Davis has returned to the NBA many times to teach new players about investment and financial management. He often advises young players to invest and manage money early. “If I could go back to my rookie days, I would definitely learn and invest right away, and then start becoming an angel investor early. People, and start trying to start a business. Don't be afraid of failure, but try and learn from experience," Davis said in an interview with CNBC. He also believes that today's business environment is more convenient for players, but it is also a huge challenge. "Now there are There are too many investment targets, not to mention stocks, bonds and franchising. There are many types from the Yuanverse, cryptocurrency, venture capital to entrepreneurship. Young people must study hard. They should not only know how to spend money, but also find ways to open source."
No matter which league or salary level you are in, Davis has a simple but important piece of advice for new players. Invest at least 25,000, whether it is starting a business or buying stocks. "Don't worry about what the agent does." He said, this money is just like tuition, and you have to operate it yourself. It doesn’t matter if you lose. Use it as learning. No matter good or bad, it will become your future experience.” Davis has also become a financial coach for many players, both professional and amateur. Players, help players create financial plans, "This 25,000 is your business school. Experience it yourself and learn from experience. This will change a lot of things."
"BD helped me a lot and talked about a lot of experience and connections. It was also because of his guidance that I started to review my financial plan." A professional player who plays overseas said that this player will also come to Davis during the off-season. Drew League teams play. "I want to be a go-to guy for young players. Whether it's sharing experience or practical teaching, I want to bring better financial intelligence and planning to the next generation," Davis said.
In the past, he was a point guard responsible for supply and loss in the NBA. Now Davis gives himself the title of "master connector" on LinkedIn, saying that he uses strong and weak connections to help new startups grow. "I am very good at building bridges. From basketball to business development, from players to industry professionals, building connections is what I do."
