He’s not a businessman. He’s business, man. That has been the mantra of Jay-Z, the world-famous musician, rapper, brand influencer, and mogul. Shawn Corey Carter has risen from poverty and living in Brooklyn projects to become a globally recognized celebrity and successful entrepreneur.
No one questions Mr. Carter’s business acumen and investor chops. He is reported to be the first billionaire rapper. And an inspiring story of rags to riches and a brief brush with operating on the wrong side of the law. The lessons and the drive to be better have made Jay-Z one of the most recognized businessmen in America.
In the past few years, Jay-Z has also made some important moves to invest in the growing domestic cannabis market. He brings decades of experience understanding consumer behavior and his abilities as an influencer.
Shawn Corey Carter’s entry into the cannabis industry is like any other venture he has started. It’s classy, well-researched, and focuses on a specific lifestyle appeal. The recent SPAC deal that Carter closed with his management company Roc Nation could make Jay-Z one of the largest California cannabis market players.
Rising to Billionaire Status with Street-Cred and Business Savvy
One of the things people admire most about Jay-Z is his honesty. The celebrity rapper is the first to admit that he started on the wrong side of the law as a youth in Brooklyn. If you listen to some of his earlier songs’ lyrics, you’ll hear the impact of street violence on him. Jay-Z knew he needed a plan to get out of poverty. But his first venture could have landed him in prison.
By his early twenties, Jay-Z had developed a different kind of business. He became a successful distributor of cocaine, crack, and weed. His black market empire got so big; he established networks out of the state of New York. With teams of street dealers in Maryland and Virginia.
The lyrics in Jay-Z songs don’t glorify street life. He talks about the dark side of the black market and the tragedies he experienced: gun and knife violence and friends and associates’ deaths. And then, in 1999, Shawn Carter was charged with first-degree assault. He was found not guilty, but he did incur a weapon charge. And that, he admits, was a turning point in his life. It was when he made a massive U-turn and pursued music as his ticket to a new life.
When you follow the trajectory of Shawn Carter’s business growth, you can’t help but be impressed. And his latest moves to enter the cannabis industry may be his boldest (and most lucrative) yet.
Jay-Z Joined the Billionaires Club in 2019
As Jay-Z began to rise in the charts with his popular rap collaborations, the money started rolling in. Big time. But rather than follow the path of excess and squandering his fortune, Jay-Z consulted with a private team of money managers.
First, Jay-Z spent years as a celebrity endorsement for lifestyle brands. Some of those products included Bing, a streaming music service called Rhapsody, Hublots designer watches, and Reebok. Jay-Z also did campaigns for Budweiser, Samsung Galaxy, Hewlett-Packard, and his hometown team, the Brooklyn Nets.
In the process of endorsing other famous brands, Jay-Z learned the value of his influence on popular culture and how to monetize it. Mr. Carter states that he is the first billionaire rapper and entered the prestigious “Billionaires Club” in 2019. With the likes of business tycoons like Jeff Bezos (Amazon), Bill Gates (Microsoft), and Warren Buffett.
Philanthropy is also important to Jay-Z. He believes in giving back to the black American community. Recently he announced that he was providing $10 million in funding for black entrepreneurs. The businessman has been transparent about his concern about the lack of social equity in the high-growth American cannabis industry.
During an interview with The Wall Street Journal, Jay-Z stated: “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.”
Source Web 2020: NYDailyNews.com
What Successful Brands Does Jay-Z Currently Own?
When you look at Jay-Z’s portfolio of businesses, he has been highly focused on lifestyle products. Who else is a better brand spokesperson for luxury products? Either as an investor or a business owner, Jay-Z has made the right moves to earn his place as a billionaire capitalist.
There are currently seven income ventures, including his $75 million music catalog.
- Roc Nation (management company)
- D’Ussé Cognac Company (partnered with Bacardi)
- Co-ownership of Ace of Spades Champagne (Armand de Brignac)
- Uber (shares undisclosed)
- Owner of Tidal (new music streaming service)
- Monogram (new cannabis brand and dispensary)
After acting as the creative director with Caliva, a successful cannabis dispensary and vertical operator in California,Jay-Z built his brand. Monogram was launched in October 2020, featuring a limited but luxury selection of cannabis products. Including a $50 hand-rolled cannabis blunt. Which you know will be showing up at every party soon for swagger.
SPAC Deal from Roc Nation Buys Out Caliva and Left Coast Ventures
Jay-Z segued into the cannabis market in 2020 with the launch of Monogram. But a recent SPAC deal indicates that Jay-Z is just getting started in the cannabis industry. The Subversive Capital Acquisition Corp (OTC: SBVC.F) just acquired Caliva (a California cannabis producer and dispensary). Jay-Z was an investor first with Caliva before launching Monogram.
The $10 million in funding was provided as part of a new SPAC deal. Jay-Z was the creative branding genius at Caliva. And it has now been acquired by Subversive Capital Acquisition Corp. The $10 million in funds will be available to black entrepreneurs who wish to start their cannabis businesses or cannabis-related ancillary services.
TPCO Holding will create the $10 million fund from the proceeds of the SPAC deal. And 2% of profits will be reinvested into the fund annually. The money will be available for minority-owned and Black-owned cannabis businesses. Jay-Z has a mission to try to right the wrongs of cannabis prohibition and the negative impact it has had on black American communities.
Social Equity So Far Has Failed: Even With Laws to Guarantee Equal Opportunities for POCs
Some states have included social equity laws to ensure that every qualified American can enter the cannabis industry. But even though these laws exist, minorities are underrepresented in the high-growth sector. They struggle to get funding because most venture capitalist opportunities are white-owned. That’s not supposed to be a problem, but it is.
Jay-Z is stepping up to do something to solve that problem. According to a Marijuana Business Daily report, approximately 81% of cannabis businesses in the United States are owned by Caucasians. People of color hold only 4% of companies.
States with social equity laws meant to prevent a white-only monopoly have other requirements that can edge out other investors. For instance, in Pennsylvania, a cannabis business license requires $2 million in capital for eligibility.
With the movement toward federal legalization stronger than ever, the American cannabis industry is expected to grow to $35 billion annually by 2025. And there will be many ancillary business opportunities available for black entrepreneurs if they can get the funding to acquire the license to get started. And now, those entrepreneurs have Jay-Z and a new source of financing that could help them get started.
