With this type of bad publicity you have to feel sorry for anyone who invested in The Honest Company.
As it happens Jessica Alba came up last year:
At the September, 2014 meeting of the New Jersey State Investment Council (as covered by NJTV) the focus was on one particular venture capital investment and whether it was made for political reasons:
But in looking through available information on General Catalyst Partners other questions pop up:
Based on their website General Catalyst Partners (GCP) gives money to a bunch of entrepreneurs who then presumably repay them at usurious rates.
One of the entrepreneurs that GCP (and by extension New Jersey) invested in was Jessica Alba and ‘The Honest Company’ which was started in 2011 but is supposed to be worth nearly $1 billion now with 300 employees and “reportedly raked in $50 million in revenue in 2013″ according to a Yahoo story that admits “right now Honest is getting about 80% of its revenues from its online store where its easier to control the customer experience.” Is something, based on an idea that must surely have been tried before, that was worth $0 in 2011 really worth $1 billion now?
‘Alternative Investments’ should rightly be called unregulated investments since the theory is that if you are rich enough to afford them then you are financially astute enough not to get burned. That may be true with people who are investing their own money but what about politicians who have other agendas – like in New Jersey where the emphasis is on investments that:
- can have ridiculously high valuations so as to reduce contributions; and
- offer the opportunity to help out your friends.
One of Chris Christie’s high school friends (that he has not disavowed yet) Robert Grady oversaw the shift to alternative investments that accomplished those dual purposes but he stepped down last November and a democratic insider is now in charge – just in time to take the fall.