Jay-Z’s startup fund is quietly investing in Southeast Asia

He’s got 99 problems, but investing in Southeast Asian tech ain’t one.

Or it just became his hundredth problem, depending on how you look at it.

In recent months, a fund linked to US hip hop megastar Jay-Z has become an increasingly active investor in regional startups.

Jay-Z / Photo credit: Mikamote / Wikimedia Commons

Regulatory documents seen by Tech in Asia reveal that an entity named Arrive Opportunities Fund I, LP acquired a stake in ecommerce unicorn-in-waiting Zilingo at some point since its US$54 million series C fundraise in April 2018. The investment may have been part of that round or Zilingo’s subsequent US$226 million series D in February this year.

Filings with Singapore’s Accounting and Corporate Regulatory Authority reveal that Zilingo – which is headquartered in the city-state – had paid-up share capital of just over US$358 million as of the end of November.

Arrive Opportunities Fund held a stake of just over 0.1%, with its preference shares worth around US$420,000 according to Tech in Asia calculations.

However, ACRA shareholder filings do not typically include convertible debt investments, so these figures may not reflect Arrive’s total investment in the company.

Zilingo declined to comment when contacted by Tech in Asia.

Arrive arrives

Arrive is a startup consultancy created by Roc Nation, an entertainment agency founded by Jay-Z in 2008 that counts the likes of Kanye West, Rihanna, and Mariah Carey among its clients. Launched in March 2017, it aims to provide “a select group of early-stage startups […] with brand services, business development, advisory, and capital to drive growth in their organizations.”

The consultancy also said it planned to launch “a traditional venture fund in order to, among other activities, support existing portfolio companies through their subsequent growth stages.”

Filings with the US Securities and Exchange Commission indicate that Arrive set up Arrive Opportunities Fund I in November 2018, having secured half of its US$40 million raise target.

Its address is listed as 1411 Broadway, New York City – the same building that served as Roc Nation’s headquarters until earlier this year and which it reportedly continues to lease.

Sequoia, Uber connections

Jay-Z and Roc Nation are focused on promoting entertainment and celebrity culture, while Arrive also has a mandate to seek out investment opportunities that have a social impact. Given these factors, it makes sense that Arrive has backed Zilingo, a fashion-focused marketplace that looks to boost reach and sales for smaller merchants across Asia.