Jay-Z has announced that he is launching an investment fund to help minority marijuana entrepreneurs get into the cannabis business.
Indeed, the American rapper said he would first invest $10 million in the cannabis start-ups selected for his support, and then add at least 2% of his net income every year thereafter. He adds, “I wanted to do something in a real, concrete way, where I do my part”.
36 states in the US have legalised cannabis for medical or recreational use, according to the National Conference of State Legislatures, creating a large market for cannabis.
In addition, a 2017 survey by the Marijuana Business Daily found that 81% of cannabis business owners and founders were white, while only 4.3% were African American. Hence Jay-Z’s desire to support these minorities.
“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 told The Wall Street Journal.
With the investment, the New York rapper seeks to diversify the cannabis industry by investing up to $1 million in each cannabis start-up he chooses to support, giving substantial support to the start-up.
This announcement comes shortly after Jay-Z’s Cannabis brand, Monogram, launched its first series of products.