Jared Leto's new role: Venture capitalist

Jared Leto is breaking in on the Silicon Valley scene with an early investment in a hot startup.

NEW YORK (CNNMoney)

The Academy Award-winner is among the early investors in human resources automation company Zenefits, one of the hottest startups in Silicon Valley.

The year-old firm said Tuesday that it raised $66.5 million in its second round of financing, an impressive feat considering its first round just closed four months ago. It now has $84 million in funding.

Related: Silicon Valley workers are saving more than you

Best known for his work on the show "My So-Called Life" and, more recently, "The Dallas Buyers Club," Leto is helping the company break into markets in the media industry, according to Zenefits CEO Parker Conrad.

Leto isn't a complete stranger to the startup universe. He's launched various business ventures in recent years, including a digital media and marketing company called The Hive, and VyRT, a live concert streaming service.

"He actually recognized this as something interesting from what he knew from starting his own businesses," Conrad said of Leto's desire to get involved with Zenefits.

But Zenefits isn't all Hollywood pizazz. The company also counts some of Silicon Valley's heaviest hitters as investors, including legendary venture capitalist Marc Andreessen, who took early stakes in Twitter (TWTR), Facebook (FB), and Zynga (ZNGA), among others.

As a centralized human resources automation company, Zenefits' technology handles human resources tasks such as benefits and payroll enrollment, health insurance, and 401k administration for small businesses. The service is free to the small companies, since Zenefits collects fees directly from the benefits providers themselves.

Conrad said the company's clients started as mostly tech firms, but now include an architecture firm, school system, manufacturer, and even a circus.

While it's still in its early stages, Zenefits' rapid expansion would invoke envy even in the fast-paced startup world. In early December, Zenefits had only 15 employees; now it has 130, Conrad said. And it's on track for 1,300% growth for the year.

Related: Other women snubbed me until I hit it big

But big growth comes with big risks. While Conrad claims Zenefits doesn't have any direct competition, he admits that the company's quick growth could leave it vulnerable to logistics and customer service challenges.

"I think this market is ours to lose," he said. "We have all the advantages in the world."

First Published: June 3, 2014: 6:49 AM ET

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'I opened 40 businesses in 35 years'

NEW YORK (CNNMoney)

Jennings, 54, (not to be confused with Jeopardy! champ Ken Jennings) has started 40 businesses in 35 years. An impressive streak -- until he admits that most of the businesses failed.

"But that's what entrepreneurship is about," he said. "We do what others won't do so that later on we have the freedom to do what others can't do."

After 22 years of "dabbling" in his startup ideas -- everything from selling exercise equipment and office supplies to running an auto service station -- Jennings hit on his most successful one in 1995.

It was a residential locksmith service called Mr. Rekey, which he launched out of the trunk of his mom's car when he was 35. It took a decade for the business to reach its first million in sales. Today, the Austin-based firm generates annual revenue of almost $8 million, employs 100 people and is a national franchise.

Related Story: For entrepreneurs, cycling is the new golf

"With Rekey, I finally figured it out," said Jennings. "If I'm bootstrapping a startup, I have to be prepared to not give up too soon."

That's what he did with all of his other startups.

"I'd hit a wall in six months and not know how to take the business to the next level," he said. "I'd go get a job until the entrepreneurial itch struck again, and I'd fall back into the same cycle."

(Some of those other ventures included selling pizza, painting houses and installing smoke alarms.)

The pattern stopped with Mr. Rekey. Six months after starting the business, he still wasn't making money but he didn't bail on it. He hasn't looked back since.

Related: Halal butcher promises 'honest to God' burgers

Jennings says he loves the "game of business."

"I like taking educated risks and seeing something grow out of it," he said.

He got a taste of this after launching his first startup at 13. It was a door-to-door seed-selling venture that he pursued out of necessity.

"My dad was an alcoholic who couldn't hold a job and drank up the family money," said Jennings. "If I wanted toys and cool clothes, and later on a car, I realized that I had to make it happen for myself."

He made $400 in the first year and $1,500 the next year. "I couldn't keep up with demand," he said.

But that early startup experience taught him basic fundamentals about entrepreneurship.

"At 14, the important lesson I learned was that it's a lot about relationships," he said.

Related: Hot businesses to start now

Over the years, Jennings has crisscrossed the country to launch his ventures, which has come at a cost to his personal life.

He uprooted his son and daughter several times during their childhood (although both now work at Mr. Rekey's corporate headquarters). He also separated from his first wife and subsequently remarried.

"Being a serial entrepreneur isn't for everybody. You have to have that itch in your blood," he said.

As he continues to grow Mr. Rekey, Jennings is also involved in five other startups that he helped launch, including a garage door installation service and a house flipping venture with his wife.

Still, life isn't all about business. Jennings works half days and took a month-long vacation to Costa Rica last year.

So what's on his mind lately? Jennings said he's starting to think about selling Mr. Rekey.

"In a way, it would be nice to be free of it to start something else," he said.

First Published: June 3, 2014: 6:58 AM ET

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Moms of GM victims grapple with new grief

Daryl Chansuthus (right) with her daughter Hasaya "Seyde" Chansuthus, who died in a car accident related to defective switches in GM cars.

WASHINGTON (CNNMoney)

Beskau's daughter, Amy Rademaker, died at the age of 15 when the Chevy Cobalt she was in hit a tree in 2006.

Beskau learned in April that Amy was among the 13 deaths that General Motors (GM) acknowledges were linked to defective ignition switches. The new information has weighed heavily on these parents, who thought they had already dealt with the worst of their grief years ago, when the cars crashed.

CNNMoney talked to three mothers of victims on GM's list.

"It just opened up all the emotions all over again," said Beskau, who is seeing a therapist and trying to surround herself with friends and family to ease her pain. "It's like finding out she was murdered all these years later, because her death was totally preventable."

Related: Two died in 2006 Cobalt crash. GM counts only one

The families are grappling with new questions, especially since GM engineers knew about the defective part at least a decade ago.

Daryl Chansuthus questions why GM didn't issue a recall notice sooner and has tried to calm her emotional pain through meditation. Her daughter, Hasaya "Seyde" Chansuthus, was 25 when her Chevy Cobalt hit a tree in 2009. The airbag failed to deploy.

Hasaya "Seyde" Chansuthus was only 25 when she died in a Chevy Cobalt accident. She's one of the GM 13.

"It's like this rock that you put in your pocket, and it's just heavy and burdensome, but you carry it so long and you get used to it," said Chansuthus, who also lost her husband in a separate car accident. "This news has been like putting that rock in my pocket all over again."

Related: Why GM recall death toll will rise

Laura Christian, whose daughter also died in a GM car, has turned her grief into a full-time advocacy job. She works on behalf of victims' families, including those who aren't on GM's official list of 13 deaths.

"I count 119 victims," said Christian, a former federal investigator, who has put together a Facebook page for families to help them connect and share information.

Christian is the birth mother of Amber Marie Rose, who died after her Chevy Cobalt crashed into a tree and the airbag failed.

"Hopefully, at some point, we'll be able to heal a little bit," said Christian, who had just begun to get to know Amber, when she died. Amber had been raised in an adoptive family. "Right now, it's still a constant poking at the wound. It's still very raw to me on some days."

All three families are among those who filed a joint lawsuit against GM in March through attorney Robert Hilliard of Texas. Amy Rademaker and Amber Rose didn't wear seat belts in their car crashes. Hasaya Chansuthus did, but her seat belt didn't lock.

GM CEO Mary Barra met with families of some victims on March 31 at an event in Washington and apologized to them. However, the apology offered families little comfort. The company has also not reached out separately to any of the individual families.

GM's problems have snowballed in the past year, with a recall that has topped 2.6 million cars worldwide for the flawed ignition switch. It has led to Congressional testimony from executives and several federal and state investigations.

While the company has tied the flaw to 13 deaths, many expect that number to increase.

GM declined to comment on the lawsuit. But spokesman Greg Martin said that "GM has taken responsibility for its actions and will keep doing so."

First Published: June 3, 2014: 7:05 AM ET

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Did the recession help save marriages?

More than 60% of couples married after the recession began discussed their credit score before getting married compared to only 35% of couples who got hitched pre-recession.

NEW YORK (CNNMoney)

Couples who got married in 2008 or later were far more likely to come clean about their credit history before saying 'I do' -- and to continue to discuss their finances into their married years, according to an Experian Consumer Services survey of roughly 1,000 married adults.

"If you have a spouse who lost his or her job that would definitely bring finances and money to the forefront of the family economics," said Becky Frost, consumer education manager at Experian Consumer Services.

Experian found that couples who were married after the recession reported a variety of good behaviors that can help couples avoid money squabbles.

• More than 60% of post-recession couples discussed their credit score before getting married, compared to only 35% of pre-recession couples.
• More than 80% of post-recession couples discussed financial goals with their spouse at least monthly, compared to 65%.
• Post-recession couples said they would discuss a purchase that costs an average of more than $256 with their spouse before making it. In contrast, pre-recession couples would feel comfortable spending more than $1,000 without checking with their partner.

Related: Marriage and money: Our biggest mistake

But just talking once about money is not enough. The most successful couples regularly discuss their finances to ensure they're on the same page, said Pat Seamen, a senior director at the nonprofit National Endowment for Financial Education.

Disclosing your credit history early in a relationship is especially important because it can affect everything from the mortgage interest you will pay as a couple to the car you can afford, she said.

"If you've got pristine credit and your fiancee's credit is not so good, you need to know that because it will have a bearing on how you apply for loans or credit going forward," she said.

Experian found that credit scores had been a source of stress for 21% of married couples surveyed. But those couples who had discussed their scores before getting hitched were far more likely to agree.

Related: Average wedding bill hits $30,000

KEEP MONEY FROM WRECKING YOUR MARRIAGE

Whether you're planning to tie the knot or have been married for years, here are some tips for talking about money with your spouse:

Come clean about your debt: Whether it's hefty student loan debt or a ding on your credit report from an unpaid bill, be honest about your financial situation.

While your credit score won't be combined with your spouse's when you get married, your ability to reach joint financial goals can still be affected by your spouse's score.

Pay attention to joint accounts: Whether it is a credit card or home loan, missed payments on joint accounts can ding both of your credit scores. So if you let your spouse handle the bills, know that his or her missteps could affect your bottom line, too.

Talk during the good and the bad times: Don't just talk about money when you hit a rough patch. If you make it a habit to speak often, you'll be less likely to associate money with conflict.

Plus, it's easier to hash out an action plan when you're both calm.

First Published: June 2, 2014: 10:00 AM ET

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Stocks start June at record highs

NEW YORK (CNNMoney)

Here are five things you need to know about Monday's market action:

1. Another day, another record: U.S. stocks opened flat to slightly higher in the first day since investors closed out the record-setting month of May. The early gains were enough to push the Dow Jones industrial average and S&P 500 to fresh all-time highs. A positive finish would represent the Dow's sixth record close this year and the S&P 500's 15th.

The Dow went as high as 16,740 this morning, and the S&P 500 hit 1,925 for the first time. All three of the major indexes are positive for the year with the S&P 500 up about 4%.

Related: These stock market 'records' actually aren't that great

2. Big movers -- Apple, Broadcom, Gannett, Protective Life: Shares of Broadcom (BRCM) bounced 12% after the company revealed it is considering a possible sale of its cellular baseband business. The chip maker said a sale or wind down could generate $700 million in savings.

Gannett (GCI) rose 2% after Barron's argued the media company could surge 40%, especially if it follows in the footsteps of peers by spinning off its publishing assets like USA Today.

Protective Life (PL) surged 15% amid reports that Japan's Dai-ichi Life Insurance is considering acquiring the Alabama-based company.

Related: 5 sizzling stocks in May

Apple (AAPL) could see its stock gyrate based on developments out of its Worldwide Developers Conference, which kicks off on Monday in San Francisco. Investors are eager to learn more about Apple's efforts to enter new product categories.

3. Positive data from China: A reading of manufacturing activity in China released over the weekend showed the country's factory sector continued to strengthen after a rough start to the year.

The data has boosted investor confidence, but not everyone was able to react to the news since a handful of Asian markets were closed for a holiday. The Nikkei in Japan surged by just over 2%.

Related: Fear & Greed Index: Still in neutral

4. Economic data and earnings: The U.S. government is scheduled to release data on April construction spending at 10 a.m. ET. The ISM index, which measures the manufacturing industry each month, is slated to be published at the same time.

Hertz Global (HTZ), Krispy Kreme (KKD) and Quicksilver (ZQK) will report earnings after the closing bell.

Related: CNNMoney's Tech30

5. International movements: European markets were slightly higher in midday trading, with the FTSE 100 in London and the Dax 30 in Germany outpacing CAC 40 in France.

The main stock market index in Spain was rising by roughly 0.6%, with investors unfazed by news that King Juan Carlos is abdicating (or perhaps welcoming it). Markets were more interested in weekend news of an economic stimulus package, including a cut in the corporate tax rate to 25% from 30%.

First Published: June 2, 2014: 9:52 AM ET

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Handgun sales are hot

The market for handguns is driven by a growing interest in self-defense and concerns about tighter gun restrictions.

NEW YORK (CNNMoney)

Smith & Wesson (SWHC)'s handgun sales jumped by nearly a third at the end of last year, and Colt Manufacturing sold twelve times as many handguns early this year than it did in 2013.

And now Colt is moving to boost its handgun production by 50%.

Related: Assault rifle boom cools off

The market for handguns is driven by a growing interest in self-defense and concerns about tighter gun restrictions.

"[New buyers] are people who have never touched a gun before and want to get into shooting," said Ben Shim, a gun industry analyst for CRT Capital and a NRA instructor.

Americans get more concerned about both personal safety and the right to bear arms every time there is a mass shooting, like the Sandy Hook tragedy in 2012, and such massacres have been happening frequently.

Last week, a man killed seven people in California, including himself, using two handguns -- a Glock and a Sig Sauer -- and a knife. While some people view these events as a reason to restrict guns, others view such events as an incentive to buy guns.

Related: Pink is the new black for women who shoot guns

Sales of compact pistols are growing at double the rate of handguns overall, according to CRT.

That's why Colt recently unveiled a new compact handgun, the .380-caliber Mustang. Colt hopes it will compete with the lightweight Glock, one of the most popular pistols in the world. Small-frame pistols are also preferred by women, a fast-growing demographic in the shooting community.

"This is a hot category," said Shim. As an example, her cites Smith & Wesson's Bodyguard .380 pistol, which weighs less than 12 ounces and has a barrel shorter than three inches. "These are pistols that you can literally put in your pocket and they won't bulge out or make your pants drop. If someone jumps you, you can shoot through your coat pocket."

The market shift toward handguns has been so pronounced that Colt is repurposing some of its manufacturing equipment and personnel that were dedicated to making semiautomatic rifles to make handguns instead.

Related: Female gun instructors in hot demand

Another indication that handgun sales are on the rise is the jump in the number of concealed carry permits, which apply only to handguns.

These permits jumped 30%, to 9 million, between 2010 and 2012, according to the most recent figures from the National Shooting Sports Foundation. They've likely increased since then, says NSSF spokesman Lawrence Keane, since Illinois passed a new law allowing permits for gun owners to carry concealed firearms.

"There's no question that handgun sales have been steadily increasing," said Keane. "[People] are largely purchasing handguns for self-protection."

First Published: June 2, 2014: 9:58 AM ET

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These stock market 'records' aren't that great

NEW YORK (CNNMoney)

When people talk about how the "stock market" is doing, they often look at the S&P 500 index. It's currently at 1,923, the highest level it has ever been.

There's just one problem: That record level is in "nominal" terms. It doesn't account for inflation.

Consider that $1 doesn't buy as much as it used to -- in the stock market or even at a fast food restaurant. Thanks to inflation, you have to make more money today to be able to buy as much as you did a few years ago.

Will Hausman, an economics professor at the College of William and Mary, calculates that the S&P 500 hit its true high -- its inflation-adjusted high -- of 2,120 on January 14, 1999.

To put that another way, the market still needs to rise about 200 more points -- over 10% -- to be on par with where it was in the late 1990s. Perhaps Prince was onto something when he told us all to "Party like it's 1999."

If you don't account for inflation, you suffer from what Hausman dubs a "money illusion."

You think you're richer than you actually are. When you go out to spend your earnings from the stock market, you quickly realize that inflation has eaten up some of your gains.

Related: Get ready for lousy stock returns

Dividends make the story even more complicated.

Many of the companies in the S&P 500 send investors a check each month called a dividend. This stream of income remains relatively steady whether the company's stock price goes up or down.

When dividends are included, the so-called "total return" of the S&P 500 has already surpassed its inflation adjusted high. It first crossed that line in May 2013, according to Ed Clissold, U.S. market strategist for Ned Davis Research Group.

Related: Stop selling! Stocks are still your best investment

There's yet another wrinkle.

The Dow Jones industrial average, another closely watched measure of the U.S. stock market, has already surpassed its inflation-adjusted high.

The Dow's prior peak occurred in 2000, but it passed that level last year.

So why the discrepancy between the Dow and the S&P 500?

It comes down to how the two indexes are composed.

The Dow is calculated using the average stock price of a group of 30 big companies. By contrast, the S&P 500 is based on the market capitalization of (as the name suggests) 500 large companies.

Related: How high can Apple stock go?

Then there is the Nasdaq. Considered a proxy for the technology industry, the Nasdaq has yet to reach its nominal all-time high, let alone its inflation-adjusted high, from 2000. At that time, there was a massive bubble in Internet stocks.

So what does all this mean for the future of the stock market?

Clissold says the fact that the S&P 500 remains significantly below its inflation-adjusted high is "part of a growing body of evidence that we're in a secular bull market."

In other words, stocks could go up more, but investors shouldn't get complacent. The fact that stocks are at all-time nominal highs suggests the market is vulnerable to a pullback.

Clissold say the S&P 500 could experience a correction, usually defined as a drop of 10% or more, in the short run. Still, he added, "corrections in a secular bull market tend to be short and shallow."

-- CNNMoney's Annalyn Kurtz contributed to this report.

First Published: May 31, 2014: 9:19 PM ET

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Sonic & Chili's: Leave guns at home

Chili's told guests Friday to "refrain from openly carrying firearms into our restaurants."

NEW YORK (CNNMoney)

Chili's, which is owned by Brinker International (EAT), said Friday, "We kindly ask that guests refrain from openly carrying firearms into our restaurants and we will continue to follow state and local laws on this issue."

Sonic (SONC) said, "We're asking that customers refrain from bringing guns onto our patios or into our indoor dining areas."

Related: Chipotle: Guns not welcome here

In recent months, gun enthusiasts have held rallies and openly carried firearms, including large automatic weapons, into restaurants. It's alarmed customers and led to campaigns against guns in restaurants from advocacy groups like "Moms Demand Action for Gun Sense in America."

Earlier this month, Chipotle (CMG)said it did not want customers to bring guns into its restaurants "unless they are authorized law enforcement personnel."

Last year, Starbucks (SBUX, Fortune 500) also told customers they shouldn't bring guns into its stores. The company said the debate about whether people should openly carry guns had become increasingly uncivil and that the chain did not want its stores to be used as a political stage.

First Published: May 30, 2014: 5:52 PM ET

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Carl Icahn, Phil Mickelson in trading probe

NEW YORK (CNNMoney)

There is no allegation of wrongdoing and the probe may find none.

The probe involves stock trades made in 2011 after Icahn made an investment in Clorox (CLX, Fortune 500), according to the sources, who are not authorized to speak publicly about the case.

Icahn bought shares in Clorox and later announced a takeover bid for the company, causing shares to rise significantly.

Prior to the takeover bid, there was suspicious trading in the Clorox shares, and both Mickelson and Walters had bought shares in Clorox at about that time, according to The New York Times, citing people briefed on the investigation.

The FBI and the Securities and Exchange Commission are looking into whether Icahn told Walters about the takeover bid ahead of time, according to the Times, and also the possibility that Walters then told Mickelson. Both agencies declined to comment about the investigation.

"I have done absolutely nothing wrong," Mickelson said in a statement provided to CNN by his agent. "I have cooperated with the government in this investigation and will continue to do so. I wish I could fully discuss this matter, but under the current circumstances it's just not possible."

CNN reached out to representatives for Icahn, who told the Wall Street Journal that he did not know about any investigation.

"We are always very careful to observe all legal requirements in all of our activities," he told the paper. The suggestion that he was involved in improper trading, he said, was "inflammatory and speculative."

Attempts by CNN to reach Walters through one of his companies were not immediately successful. But he told the Wall Street Journal, "I don't have any comment about anything."

--CNN's Lex Haris and Mariano Castillo contributed to this report.

First Published: May 31, 2014: 1:00 PM ET

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Want Beyoncé tickets? Wait till the last minute

Beyoncé and Jay-Z will be kicking off their tour at Sun Life Stadium in Miami in June. Last year, she played smaller arenas.

NEW YORK (CNNMoney)

The reason: Unlike last year, some of the hottest concerts -- Beyoncé, Rihanna, and One Direction -- are all playing at big stadiums.

Larger venues mean more tickets.

"As we get closer to the shows, ticket brokers who hold big blocks of seats will start to release their inventory, and there will be plenty of inventory this year," said Chris Matcovich, who runs data and communications for ticket search engine TiqIQ.

Matcovich says chances are, people will be able to get tickets the day before and even on the day of the event, especially if they don't care where they sit. However, he advises discerning concert goers who want choice seats not to wait till the day before. To be on the safe side, they should buy tickets a week or two before the performance.

Related: Apple buying Beats for $3 billion

Usually, when concert tickets are first released, only a few lucky fans are able to snag seats through Ticketmaster or parent Live Nation (LYV, Fortune 500). The rest are left to find tickets that are resold via StubHub, TicketNetwork, SeatGeek, or even eBay.

That's because ticket brokers, credit card companies, venue owners, and even fan clubs tend to snatch up large blocks of tickets as soon as they are sold. While brokers hope to sell at higher prices, companies use them as a special currency for VIP's.

But this year, they might end up holding on to more seats than they can fill until it's too late.

And that usually leads to last-minute discounts.

Consider this: The British boy band One Direction, a rage among American tweens and teenagers, will be playing this summer at 70,000- to 80,000-seat football fields. Last year, they played at 20,000-seat arenas.

The same holds true for Beyoncé and Jay-Z, who'll be kicking off their tour at Sun Life Stadium in Miami in June. Last year, the Queen B played smaller arenas.

Tickets are already selling at lower prices this year, according to TiqIQ.

In 2013, the average price of a One Direction ticket was selling for $433. This year, it's selling for $236, according to TiqIQ.

Similarly, tickets for Beyoncé's show last year cost $399. This year they're selling around $274.

And if Matcovich is right, chances are they could go even lower.

First Published: May 30, 2014: 3:03 PM ET

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