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Jay Z Launches New Venture Capital Fund

The Rock is in the building.

Jay Z is launching a new venture capital fund with business partner Jay Brown according to a new Axios report. They’ll be focusing on early stage tech startups. No word yet on the fund’s size. Jay’s had some hits on billboard charts as well as investing. He’s also taken his share of lumps. Let’s take a quick glance at his investment record.

The Wins

He was an early investor in Uber participating in the company’s 2011 Series B funding round, when it was valued at just $300 million today Uber’s valuation is at approx $66 billion. Nice!

He purchased Tidal for a rumored $56 million, and recently sold 33% of the company to Sprint for approx. $200 million.

Jay Z co-founded Roccawear clothing and sold it for $200 million in 2007.

The Losses

In 2012, Jay Z’s Roc Nation invested in a company called Viddy, who was aiming to be the “Instagram for video.” Unfortunately the company failed just a few years into the investment.

Roc Nation also invested along with Ashton Kutcher & Marc Benioff in a private jet startup called BlackJet in 2012, but the company shut down last year.

Too Close to Call

In 2011, Roc Nation invested in Stance, a “premium sock company.” I know it sounds a bit weird, socks son?! Stranger investments have blown up, think Snuggie. Who would have thought a blanket with holes in it would gross over $500 millon? Well the sock company, Stance, has raised $116 million. Let’s see how this one pans out.

In the VC game 75% of venture capital investments fail. All it takes is 1 to pop and you’re a legend. The 1 win can obliterate all of the losses many times over. Scared money doesn’t make money. Be smart though!

Martel

Jigga Done Did It Again: Sprint Buys 33 Percent Stake in Jay Z’s Tidal

Jay Z’s music streaming service Tidal and wireless phone service provider Sprint have teamed up. Sprint has acquired a 33% interest in Tidal. The deal gives 45 million Sprint customers access to Tidal along with exclusive content. Sprint’s CEO, Marcelo Claure now has a seat on Tidal’s Board of Directors. According to Billboard, Sprint paid approximately $200 million for their stake.

“It Wasn’t All Good Just a Week Ago”

Accounts of Tidal’s struggles permeated the industry. The company reportedly lost $28 million last year. This signals a major turn of events. Jay-Z purchased Tidal for $56 million and in 2 short years they’ve received an infusion of $200 million. Quite the power move. Well played sir. Maybe he does have the keys… 

Enough spectating from the sidelines, what are your next business moves? Hit me on the Gram and let me know.

Martel

 

I Got The Keys: 4 Key Business Lessons From Jay Z

My musical taste spans a wide spectrum from alternative rock, pop, jazz, r&b and even classical music, but at the end of the day I’m a hip hop junkie. Not so much the newer stuff but the golden era of hip hop, the 90’s. Recently Jay Z and DJ Khaled released a track called “I Got the Keys” which has a few gems I think the entrepreneurial community can appreciate. Let’s peel back some of the layers of this onion shall we?

  1. “People always asking me the key… Until you own your own you can’t be free.” Jay Z
    • Wow. What a way to start the show. Very powerful statement there and it’s the truth. Those of us blessed to have employment appreciate the stable check but can’t somehow help feeling like we’re slaving away on the 9 to 5 grind, while the folks at the top of the pyramid seem to be reaping the major rewards from our labor. How does one rectify this? Well as Jay suggests “you have to own your own.” That’s what we’re about here at MogulGrind launching and growing successful businesses.
  2. “The key to life is to keep a bag coming” Jay Z
    • “Bag coming” is a reference to keeping the money bags coming. In other words developing multiple streams of income (MSI). The Oracle of Omaha, Warren Buffett once said “Never depend on a single source of income.” If it’s good enough for a man worth over $60 Billion I think it’s great enough advice for us MogulGrinders. Develop Multiple sources of income i.e. Real Estate, Equities, Business Venture(s), etc.
  3.   “I aint been asleep since 96′, I aint see the back of my eyelids.” Jay Z
    • This is in reference to working hard and perfecting your craft, taking advantage of the opportunities that present themselves, and creating your own opportunities through hard work. Nothing is going to magically appear for us. Any worthwhile endeavor is going to take a lot of discipline and hard work.
  4. “I got the keys.” 
    • You have the power to determine where you go in life. You have the keys to the future, to success, or even to failure. Regardless of the circumstances you are born into, if you can read and are of sound mind you can improve your life significantly by making smart choices and learning from mistakes. No one is holding you down.

 

Do you have your “I Got The Keys” tee yet?

 


Martel