Jay-Z Has a New Venture Fund, and Silicon Valley Partner
By
Jon Swartz
June 26, 2018 4:06 p.m. ET
The View From Silicon Valley
Jay Z ILLUSTRATION: CHRIS MCGRATH
Jay-Z, Silicon Valley's newest high-profile investor, just might be a game changer, as he's been in every field he's entered.
The entertainment mogul has a new venture fund, called Marcy Venture Funds, and a new partner in the heart of the valley.
The music mogul and longtime business partner, Roc Nation President Jay Brown, are teaming with Larry Marcus, managing director of Walden Venture Capital, an investor in Pandora Media (P) and SoundHound, according to regulatory filings in California. Axios first reported the news.
"It's no surprise that Jay-Z would launch a venture fund," Ben Parr, a former VC who is co-founder of Octane AI, tells Barron's. "Equity in fast-growing startups has huge upside–more than record sales or touring revenue. Early-stage venture investing is all about access, and Jay-Z has the name, network, and brand recognition to get into the top deals."
Jay-Z's Roc Nation, which has invested in several tech firms, including Ethos, a San Francisco-based company that allows people to buy term insurance quickly online, is the latest celebrity to launch a venture fund. NBA legend and Academy Award-winner Kobe Bryant introduced a $100 million fund with entrepreneur and investor Jeff Stibel in 2016, and and current NBA star Carmelo Anthony has worked with former NBC (CMCSA) executive Stuart Goldfarb on M7 Tech Partners since 2014.
Jay-Z's name recognition, unparalleled ability at branding, and business acumen make him an irresistibly "powerful magnet for entrepreneurial talent," says Paul Maeder, founding partner at Highland Capital Partners, an early-stage VC firm.
"They [Roc Nation] know how to build world-class brands and connect us to the world outside Silicon Valley," Peter Colis, Chief Executive of Ethos, tells Barron's. "They broaden our reach." Ethos was selective, he says, when it landed $11.5 million in investments this month from Roc Nation, VC firm Sequoia Capital, actors Will Smith and Robert Downey Jr., and NBA superstar Kevin Durant.
The fund’s name is a nod to Jay-Z’s upbringing in the Marcy Houses, a public-housing complex in Bedford-Stuyvesant, Brooklyn. We emailed and called Jay-Z's publicist, but did not hear back from them today. Marcus could not be reached for comment.
The two Jays last year explored a VC firm with Sherpa Capital before that plan was scotched after co-founder Shervin Pishevar left the firm over accusations of sexual harassment. Roc Nation launched its own startup platform, called Arrive. Tidal, an artist-owned music-streaming service, is led by Jay-Z.
"Larry Marcus is the most knowledgeable VC in the music technology space," Brian Zisk, general partner of the SF MusicTech Fund, tells Barron's. "Combining his skills and experience with the music industry savvy and connections of Jay-Z and Jay Brown will make Marcy Venture Capital the top music-technology fund as soon as they launch."
The impact of Jay-Z's fund–some are already calling it the JZ Fund–will resonate as much in the evolution of digital music as it does for diversity in what is historically the white-male domain of venture capital, say investors. It also opens the door to entrepreneurs who are not ingrained in the insulated world of tech, says Angela Benton, CEO of NewME Accelerator.
“Having more people on the check-writing side of the table who come from diverse backgrounds is impactful and necessary,” Arlan Hamilton, founder and managing director of Backstage Capital, tells Barron’s. “More capital flowing from and to people of color is always going to be a good thing in my book.”
https://www.barrons.com/articles/jay-z-has-a-new-venture-fund-and-silicon-valley-partner-1530043604
By
Jon Swartz
June 26, 2018 4:06 p.m. ET
The View From Silicon Valley
Jay Z ILLUSTRATION: CHRIS MCGRATH
Jay-Z, Silicon Valley's newest high-profile investor, just might be a game changer, as he's been in every field he's entered.
The entertainment mogul has a new venture fund, called Marcy Venture Funds, and a new partner in the heart of the valley.
The music mogul and longtime business partner, Roc Nation President Jay Brown, are teaming with Larry Marcus, managing director of Walden Venture Capital, an investor in Pandora Media (P) and SoundHound, according to regulatory filings in California. Axios first reported the news.
"It's no surprise that Jay-Z would launch a venture fund," Ben Parr, a former VC who is co-founder of Octane AI, tells Barron's. "Equity in fast-growing startups has huge upside–more than record sales or touring revenue. Early-stage venture investing is all about access, and Jay-Z has the name, network, and brand recognition to get into the top deals."
Jay-Z's Roc Nation, which has invested in several tech firms, including Ethos, a San Francisco-based company that allows people to buy term insurance quickly online, is the latest celebrity to launch a venture fund. NBA legend and Academy Award-winner Kobe Bryant introduced a $100 million fund with entrepreneur and investor Jeff Stibel in 2016, and and current NBA star Carmelo Anthony has worked with former NBC (CMCSA) executive Stuart Goldfarb on M7 Tech Partners since 2014.
Jay-Z's name recognition, unparalleled ability at branding, and business acumen make him an irresistibly "powerful magnet for entrepreneurial talent," says Paul Maeder, founding partner at Highland Capital Partners, an early-stage VC firm.
"They [Roc Nation] know how to build world-class brands and connect us to the world outside Silicon Valley," Peter Colis, Chief Executive of Ethos, tells Barron's. "They broaden our reach." Ethos was selective, he says, when it landed $11.5 million in investments this month from Roc Nation, VC firm Sequoia Capital, actors Will Smith and Robert Downey Jr., and NBA superstar Kevin Durant.
The fund’s name is a nod to Jay-Z’s upbringing in the Marcy Houses, a public-housing complex in Bedford-Stuyvesant, Brooklyn. We emailed and called Jay-Z's publicist, but did not hear back from them today. Marcus could not be reached for comment.
The two Jays last year explored a VC firm with Sherpa Capital before that plan was scotched after co-founder Shervin Pishevar left the firm over accusations of sexual harassment. Roc Nation launched its own startup platform, called Arrive. Tidal, an artist-owned music-streaming service, is led by Jay-Z.
"Larry Marcus is the most knowledgeable VC in the music technology space," Brian Zisk, general partner of the SF MusicTech Fund, tells Barron's. "Combining his skills and experience with the music industry savvy and connections of Jay-Z and Jay Brown will make Marcy Venture Capital the top music-technology fund as soon as they launch."
The impact of Jay-Z's fund–some are already calling it the JZ Fund–will resonate as much in the evolution of digital music as it does for diversity in what is historically the white-male domain of venture capital, say investors. It also opens the door to entrepreneurs who are not ingrained in the insulated world of tech, says Angela Benton, CEO of NewME Accelerator.
“Having more people on the check-writing side of the table who come from diverse backgrounds is impactful and necessary,” Arlan Hamilton, founder and managing director of Backstage Capital, tells Barron’s. “More capital flowing from and to people of color is always going to be a good thing in my book.”
https://www.barrons.com/articles/jay-z-has-a-new-venture-fund-and-silicon-valley-partner-1530043604
