Jay-Z’s Roc Nation Invests $5 Million in Musicow

US entertainment tycoon Jay-Z’s Roc Nation is set to invest about $5 million in South Korean music copyright trading platform pioneer Musicow Inc., becoming the Korean startup’s No. 2 shareholder.

According to investment banking industry sources, Roc Nation is expected to sign an agreement to acquire a stake of about 20% in Musicow US, the American unit of the Korean music copyright trading platform operator, for about $5 million in mid-November.

Roc Nation is said to have made it clear in the stake purchase agreement that it is a strategic investor with greater involvement in the Korean startup’s management.

About Musicow

Founded in 2016, Musicow introduced the world’s first fractional investment platform for music copyright trading. It pays a lump sum to creators of music tracks for requests to request copyright fees. It then divides the claim rights into small fractions and auctions them. Half of the proceeds from the auction deals go to the artists.

Investors in the music claim rights earn a profit from the music copyrights, similar to dividends paid to stock investors for shares. Individual investors can also trade ownership of copyright claims through the platform.

Jay-Z’s Investment Strategy

Jay-Z, one of the most successful artists in hip-hop history, has also become one of the first hip-hop artists to achieve billionaire status in the United States. He has built his wealth empire with successful startup investments.

In 2013, Jay-Z invested $2 million in Uber Technologies Inc., and its share valuation was estimated to have jumped to $70 million after the ride-hailing app operator went public in 2019.

Along with US alternative investment giant Blackstone Inc., Oprah Winfrey and Natalie Portman, Jay-Z also invested $200 million in stakes in Swedish oat milk producer Oatly in 2020.

Market Potential

The growth potential of the market for trading individual music copyrights in the US, the world’s largest recorded music market worth $17.1 billion, is said to have caught the attention of Jay-Z.

Once the Musicow service starts in the US, Korean pop song copyrights are also expected to trade in the country.

About Jay-Z

Jay-Z is the world’s richest hip-hop musician worth $2.5 billion, according to Forbes. He is richer than Taylor Swift, the world’s richest female celebrity with a net worth of $1.6 billion.

In 2008, Jay-Z founded Roc Nation, an entertainment company that operates music labels and manages some of the world’s most recognizable names, from Rihanna and Megan Thee Stallion to Lil Uzi Vert and Big Sean.