According to reports from The Wall Street Journal, Hov is launching a fund to invest in minority-owned cannabis startups in an effort to encourage more diverse participation in the cannabis industry.
The rap legend’s fund stems from the acquisition of two California-based marijuana companies, Left Coast Ventures and CMG Partners, by Subversive Capital Acquisition Corp. The merged company–which has now been dubbed The Parent Company–will use $10 million in seed money acquired by Jay to start the Social Equity Ventures fund. The Parent Company will then invest two percent of its net annual income to the fund.
The Social Equity Ventures fund was created to promote Black participation in the cannabis space.
“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. “I wanted to do something in a real, concrete way, where I do my part.”
For each cannabis startup it chooses to back, the Social Equity Ventures fund will donate up to $1 million.