Jay-Z makes an announcement of the launch of Dream Chasers record label in joint venture with Roc … [+]
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Jay-Z’s got 99 problems but a new venture fund ain’t one, since he’s raised a ton of cash. The rapper and business mogul’s Marcy Venture Partners (MVP) was able to create an $85 million fund to invest in consumer-focused startups, according to a recently released SEC filing. The venture was established in 2018 and raised the capital from 54 investors, for its first fund.
The Breakdown You Need To Know: In addition to the hip hop icon, MVP was also co-founded by former Roc Nation CEO Jay Brown, and longtime venture investor Larry Marcus. CultureBanx reported that together the trio of Jay-Z, Jay Brown, and Larry Marcus have made funds available for thriving businesses that need a cash injection to approach the next level. The team has a plethora of experience with Marcus being an investor as an early backer of successful companies like Pandora and Netflix.
According to MVP’s Crunchbase page, “the firm has a passion for building game-changing consumer businesses and mass-market brands that resonate with culture across products and services, media and technology.”
Investing in Culture: MVP’s first investment was made with Hungry Marketplace’s $8 million Series A in April 2019. Collectively they’ve poured money into a total of 6 companies, including the Airbnb-for-camping startup Hipcamp, and leading the rounds for three other companies, according to Crunchbase. Marcy’s most recent investment round was in electric mobility company Wheels in October 2019.
Its most major investment to date was in Rihanna’s Savage x Fenty lingerie line, as they led its $70 million funding round. Her lingerie company earns an estimated annual revenue of $150 million, meaning that MVP has made some wise initial investments.
Jay-Z isn’t new to this investing game because before formally launching a venture capital firm, he had invested in companies like Uber and Impossible Foods. He was able to get in on Uber’s Series B round in 2011, when the company had a pre-money valuation of $300 million and before they went public in June 2019. The investments didn’t stop there as he also poured money into JetSmarter, Julep and Promise, a decarceration startup.
Made in Marcy: In many ways, Marcy Venture Partners represents the culmination of an increasingly rare story about the American Dream, with Jay-Z shattering the glass ceiling yet again. The name is a nod to Brooklyn’s Marcy Houses where he grew up. Just like the fast paced environment in which he grew up, MVP has experienced a quick pace of investing for the first seven months of a VC firm’s existence.
