When it comes to dealmaking, one social media superstar is all about equity instead of making a quick buck.
Josh Richards, a "very business-minded" 19-year-old influencer, investor, and entrepreneur, has channeled his focus into a massive social media following. He has over 24 million on TikTok, the viral video platform, just by itself — and a whopping 35.6 million total.
"I think a lot of influencers are so intrigued by the instantaneous payout, or they're getting that cash right there in their hand on site. And they don't see the value in the longevity from equity, from doing a deal that isn't centered around, around the cash or a pay-to-post," Richards told Yahoo Finance Live on Friday.
In July, Richards became an investor and the chief strategy officer for Triller, an AI-driven music video and entertainment platform that likes to "focus on doing a lot larger deals," rather that quick one-offs.
He's also co-founded companies from scratch, including a digital talent management firm, TalentX, and Ani Energy, an energy drink launched with fellow TikToker Bryce Hall.
His recent investments include Breakr, a platform connecting musical artist and influencers to review music; Step, a banking app built for teens; Sillybandz, the legacy wristband business he's helping relaunch; and the Fan Controlled Football League (FCF), the first-ever league where fans call the plays in real-time. So what drives his investment philosophy?
"When I'm looking at investments, a lot of the times, it will have to do if I have some high conviction or passion towards this," Richards said.
For example, Richards is interested in financial literacy, which drove his decision to invest in Step, a banking app for teens to build credit and sharpen finance skills before they're 18 years old.
"When I'm a social media creator preaching day in and day out about not spending your money on the clothes and the cars and all these luxurious items, and I'm talking about the investments I'm making, I need to be able actually to show that and practice what I preach and with Step that's what will be done," Richards added.
Julia La Roche is a correspondent for Yahoo Finance. Follow her on Twitter.
