Sure hip-hop titans Nas and Jay-Z are known for being two of the best hip-hop artists of all time, but what many people don’t know is that the two kings of New York are also making major moves as venture capitalists; Nas with QueensBridge Venture Partners, while Jay-Z of course has the ever growing Roc Nation, and the recently launched ARRIVE.
Jay Z. Photo courtesy of Radio.com
While most hip-hop entrepreneurs are investing in the usual money makers like apparel and alcoholic beverages, both Nas and Jay-Z are setting precedent within the hip-hop community by investing in startups, focusing on technology, thinking outside of the box, and not being afraid to take calculated risks.
Although your pockets may not yet be as deep as Nasir Jones’s and Shawn Carter’s, here are three pointers to keep in mind once you are ready to start investing those big bucks that you’ve been working so hard at earning.
1. Invest in Startups
The National Venture Capital Association reports that almost $60 billion were deployed to startup companies in 2015. No wonder both Jay-Z and Nas are becoming two of music’s most lucrative angel investors. Using artificial intelligence and big data for music production, LANDR is one of Nas and QueensBridge Venture Partner’s latest investments. YUL Ventures, Warner Music Group, and a host of other firms are also investing in LANDR, which is used to help over 300,000 musicians master their music in the post-production phase.
As for Jay, he believes in startups so much that in March of this year his entertainment company Roc Nation launched ARRIVE, a venture capital firm that will offer a variety of services to early stage startup companies. According to a press release released by Roc Nation, the venture capital firm will help startups with everything from business development to brand services. “We’ve opened that diversified, global range of expertise to a new vertical: entrepreneurs and their early stage businesses,” said Neil Sirni, Roc Nation’s Head of New Ventures.
2. Technology Is The Way To Go
One visit to Nas’s QueensBridge Venture Partners website and it’s pretty clear to see that his firm is all about staying on the cutting edge of technology. The website reads: “Over 100 years of experience operating at the intersection of technology, financial markets and popular culture.”
According to reports by KPMG Enterprise and CB Insights, although there is a downturn in the market, now is the perfect time to invest in technology. In 2015 alone there was more than $128 billion invested in tech companies worldwide (CNBC). It makes perfect sense then that both Jay-Z and Nas would get in on some of these investments. Jay-Z was one of the early investors in the now multi-billion dollar company Uber when it was worth 300 million, and Nas’s QueensBridge Venture Partners has invested in Lyft and Dropbox among many other tech related companies.
Nas. Photo courtesy of All-American Entertainment
3. Think Outside of The Box and Take Risks
When Jay-Z couldn’t get a record label to sign him he partnered with two friends and created his own record label. While Nas’s rise to meteoric heights was a bit different, his ability to bet on himself and take risks throughout his career has been very similar. Nas has never been one to rely on a pop single to take his albums to the top of the charts. Throughout his career, the subject matter of his rhymes and his unwavering ability to be his authentic self in his music, have continued to place him in a class of his own. In short, he’s always chosen the road less traveled and has earned the respect of the hip-hop community and music world at large because of it. Not to mention, the Queensbridge rapper dropped out of school before reaching the 9th grade so that he could pursue a career in music.
Needless to say, when it comes to thinking outside of the box and taking risks, Jay and Nas have been doing it for the length of their careers, which have spanned more than two decades. In terms of their business investments, they are following a similar playbook by investing in everything from health care to private jets, and even socks.
Although Jay-Z’s investment in private jet company BlackJet proved to be unsuccessful, it didn’t stop him from investing in another Uber-like private jet service, JetSmarter just a few years later. But this hasn’t been his only risky business move. In 2011, Jay-Z’s Roc Nation imprint invested in premium sock company, Stance. Never quite making it to household name status, Jay’s foray into the sock industry was definitely not a guaranteed come up. One year later he invested in Viddy, which was supposed to be the “Instagram of video”. The company was shut down in December of 2014, and sold to Fullscreen for $20 million. Even though Jay may have made some money off of that investment, it is not flaunted as one of his better business moves.
Then there’s Tidal. While some people may consider Jay-Z’s investment in the music streaming service as his biggest blunder, others see it as a testament to Mr. Carter’s confidence. Back in 2015, Jay partnered with a group of musicians to purchase Aspiro AB, Tidal’s parent company, for $56 million. According to the Wall Street Journal, that same year Aspiro AB reported a net loss of $28 million.
Sure his stake in Tidal with streaming services like Apple Music and Spotify already existing was a dangerous move, but as they often say in the streets where Jay and Nas were groomed, “scared money don’t make money.” Despite still lagging behind streaming services like Spotify, it seems as if Jay has no plans of slowing down with Tidal anytime soon. His latest album, “4:44”, which went platinum in a cool five days, is the fastest album to go platinum in 2017, and was released exclusively on Tidal. Not to mention Sprint recently purchased 33 percent of the music streaming service. However, the fact still remains, Tidal has around 3 M subscribers while Spotify has upwards of 40 M paying subscribers. But we’re sure Jay’s not worried about it. We’re pretty confident him and Nas are somewhere plotting on the next big thing to throw their millions into as we speak.
Nas and Jay Z. Photo courtesy of The Source
It isn't always easy to stay on top of your finances, especially when you have developed unhealthy spending habits over the years. However, as you begin to realize the many benefits of having healthy finances, it can become something you want to make a conscious effort to improve. When your finances are in a good place, you often have access to better opportunities whether it be a mortgage loan, greater credit line or business loan. On that note, here is how you can become an expert at managing your finances in case you need a few tips.
Learn to Use Technology
The good thing about managing finances in the technological age is that you don't have to do it alone. There are so many apps available that will help you pay bills on time and track your expenses. For instance, some apps force you to live within your actual income and tell you what to do when you need to balance your budget.
If you need an app that will help you get better at saving, then some will set aside your spare change for you. Also, don't be afraid to use more simple tools such as your smartphone calendar to set reminders about payments if you don't automate them.
Seek Legal Advice
Sometimes, being an expert at something means understanding that you can't possibly know it all. This is why you have professionals around you that can help fill in the gaps where you're lacking. Consider hiring a legal firm to help with any challenges that are beyond you. Lexington Law is a good firm as they could help remove negative items from your credit report. Read this Lexington Law Review (Our #1 Credit Repair Service of 2019) to find out more about how they could help improve your finances.
You can't do better than what you know when it comes to managing finances. You should, therefore, invest your time in learning more about finances and how to manage them. Think about what your goals for your finances are and what knowledge gaps you need to fill.
For example, if you want to invest in the stock market so that you can improve your net worth, then you may need to learn more about investing to do so successfully. To boost your knowledge, try reading articles on credible blogs that share finance information from professionals. Also, be weary of content from finance-driven companies as it could be biased.
Work on Growing Your Income
As a self-proclaimed finance guru, you know that the more sources of income that you have, the better. Work on increasing your streams of income so that you have more money to meet your targets whether it's to save for a property or put larger sums towards retirement. One way to do so would be by getting extra income by doing social media marketing for businesses or creating tutorials on YouTube. If you own a property, renting out rooms is a great way to make passive income.
Live Within Your Means
It can be difficult to live within your means when you live in a society that is always presenting you with things to buy. However, being more conscious about the things that you purchase could help you realize that most are wants rather than needs. To live within your means, always take time to think about a purchase as opposed to impulse spending. You should always get good at bargain hunting as many times you can find items of similar quality at a cheaper price.
Learn How to Manage Debt
Debt doesn't have to be a bad thing if you understand how it works and how to manage it. It can be a tool for credit building when you understand the fundamentals. For instance, if you take out a loan or credit card, always be mindful of your interest rates.
By paying the amount of money you borrowed back in full before the due date, you won't have to pay interest on what you borrowed. If you can't pay back in full, paying more than the minimum payment will ensure you incur less interest. For the most part, the secret to good debt management is never spending more than you can afford to pay back.
Managing finances is a life skill that can help improve your quality of life. By following the mentioned tips and taking your finances more seriously, you're more likely to master the art of healthy finances.