Brooklyn-born music mogul, Jay-Z has started an investment fund to help minority marijuana entrepreneurs break into the booming cannabis business.
The rapper aims to diversify the legal cannabis industry by investing in firms owned by black people and other minorities who have borne the brunt of laws that kept the drug illegal for decades.
In an article with the Wall Street Journal, he said: “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.
“I wanted to do something in a real, concrete way, where I do my part,” he reportedly added.
The US marijuana market is worth about $20 billion and could grow larger than the $70 billion market for wine by 2030, the WSJ reported, citing an estimate from investment bank Cowen & Co.
But black people have reportedly struggled to access that lucrative market even though they’ve been far more likely than white people to get arrested for pot possession. A 2017 Marijuana Business Daily survey found that 81 percent of cannabis business owners and founders were white while just 4.3 percent were African-American.
The fund stems from the acquisition of two California-based pot firms — Left Coast Ventures and CMG Partners — by a blank-check company called Subversive Capital Acquisition Corp.
The merged company, dubbed The Parent Company, will start the “Social Equity Ventures” fund with an initial $10 million and then add at least 2 percent of its net income each year after that, according to a press statement.
The fund will invest up to $1 million in each cannabis startup it chooses to back, according to the Journal. It will reportedly be run by Jay-Z — who was born Shawn Carter — and Desiree Perez, the CEO of his Roc Nation entertainment empire.
Some 36 states have legalized cannabis for medical or recreational use, according to the National Conference of State Legislatures, creating a massive industry for a drug that’s still illegal under federal law.