Kobe Bryant was one of the most intelligent basketball players of all time.

I was even more excited for his life post-basketball as an investor.

In 2014, Kobe invested an estimated $6M in Body Armor, a sports drink that rivaled Gatorade and Powerade.

In November 2021, Body Armor was acquired for a reported $5.6B by Coca-Cola. The late Kobe Bryant’s estate received an estimated $400M from the sale.

I want to highlight from a technical perspective Kobe’s brilliance as an investor.

Expected Value > Funds Raised

Kobe and his VC firm, Bryant Stibel, invested in Body Armor in 2013 and 2014 (highlighted in teal). Various funding sources indicate that Bryant Stibel invested approximately $1.1M in 2013, and Kobe Bryant invested upwards of $6M in 2014.

The timing of the investment was remarkable. Per AMOS, Body Armor’s exit likelihood was 9.5% during the initial Bryant Stibel investment. At an estimated $40M company valuation and multiplied by the AMOS score (Exit Probability), Body Armor’s Expected Value ($3.8M) was greater than the funds it raised ($1.1M).

Earlier rounds (Pre-Seed and Seed) saw the Expected Value of Body Armor yield a lower amount than the funds raised in their respective rounds.

Series A was the first round for Body Armor where the funds raised were less than the Expected Value, and that’s when Kobe aka The Black Mamba struck.

In a follow-on round in 2014, Kobe reportedly wrote his own check and obtained a board seat in Body Armor. Kobe’s $6M investment at a $60M post-money valuation multiplied by the 11.7% AMOS score again gave Kobe equity in a company where the Expected Value was greater than the round of funds raised.

What a Move!

Bryant’s shrewd move hedged some of the high-risks of investing in a startup because he put money into Body Armor at its most opportune time.

Note how Pre-seed and Seed investors had an Expected Value less than the money they invested. Additionally, Series C investors also had an expected value less than the money invested for that round.

Kobe could have invested in the Series B round where the AMOS Score (Exit Probability) was greatest, but, at a higher valuation, his investment would have netted him a smaller ownership stake.

Mamba Mentality at its finest off the court.