The Brooklyn-born Shawn Corey Carter ‘Jay-Z’ may be best known for his raps, for his various business ventures, and for being Beyoncé’s husband. However, today, he’s putting on his “investor” hat.
Jay-Z has started an investment fund — totaling $10 million — that, he says, will help budding entrepreneurs in the cannabis industry. Specifically, he says, these funds are earmarked for Black men and women who are, statistically, shut out of the “legal” pot market.
Shawn “Jay-Z” Carter, already a cannabis entrepreneur, will serve as “chief visionary officer” of The Parent Company (TPCO), which aims “to help rectify the wrongs of cannabis prohibition.”
“We are focused on diversifying both the business leadership and workforce of the cannabis,” the company said in a recent statement.
“We were the ones most negatively affected by the war on drugs, and America has turned around and created a business from it that’s worth billions,” Jay-Z said to The Wall Street Journal. “I wanted to do something in a real, concrete way, where I do my part.”
The fund, itself, was formed thanks to what’s known as a “blank check” deal from Subversive Capital Acquisition Corp. This blank check deal allowed the “Big Pimpin’” rapper to acquire two companies — Left Coast Ventures and CMG Partners — and this “joint venture” of sorts is who will be providing the funding to interested Black-owned cannabis companies.
Further, according to the press release announcing the fund, each company will receive $1 million — which means that Jay-Z, through this acquisition company, will be investing in 10 different cannabis companies.
While Hova, himself, has joined the exploding weed fray — thanks to his recently-announced top-shelf pot company known as Monogram — this latest announcement shows that he’s actually looking to help other bud-preneurs, as well.
The fund launches at a time when US states have legalised marijuana use, and more cannabidiol products have become ubiquitous, sparking an investment frenzy.
“This is an incredible time for this industry. The end of cannabis prohibition is here, and The Parent Company will lead the charge to a more expansive and inclusive cannabis industry,” Jay-Z said in the statement.
In addition to the initial target of $10-million in The Parent Company Social Equity Ventures the company plans to provide “an annual contribution of at least 2 percent of net income” to the industry.
TPCO, formerly Subversive Capital Acquisition, was formed through a tie-up of direct-to-consumer cannabis platform Caliva, Jay-Z’s Roc Nation and Left Coast Ventures. Singers Rihanna and DJ Khaled also are investors in the venture.
Beyond investing, TPCO said “the fund will also support organisations and programmes focused on diversifying the cannabis workforce through job fairs and placement, industry training and education, as well as Social Equity application support.”