Jay-Z Creates Fund to Support Minority-Owned Cannabis Companies

Shawn “Jay-Z” Carter has raised capital for a $10 million fund for minority-owned cannabis companies to help make it possible for them to cash in on the multibillion-dollar legalized marijuana market, according to The Wall Street Journal. The rapper and entrepreneur said it is only fitting minorities be able to profit from the legalization of cannabis, especially since they have been the ones most often prosecuted for possession of the drug when it was illegal.

“It’s really unbelievable how that can happen,” Carter 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.”

The investment vehicle, known as the Social Equity Ventures fund, will offer up to $1 million for each cannabis startup it chooses to invest in, according to Black Enterprise. The fund will also be used to help attract more diverse business owners to the cannabis industry through workshops and job fairs.

Carter’s investment is a byproduct of Subversive Capital Acquisition acquiring two cannabis companies, CMG Partners, Inc., and Left Coast Ventures, Inc., according to Business Insider. Carter is now the chief visionary officer for the merged company, which is called The Parent Company. This new corporation will also give Carter’s fund an added 2 percent of net income each year.

Carter also recently introduced Monogram, his own cannabis company. Medical marijuana first became legal in California 25 years ago. It is estimated cannabis could overtake wine’s $70 billion market nationwide in nine years, according to Cowen & Co.