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In 2013, Jay-Z put $2 million into Uber; when the ride-hailing company went public in 2019, his stake was reportedly worth about $70 million
In 2013, Jay-Z reportedly put $2 million into Uber. Forbes estimated that stake at about $70 million by the 2019 IPO, but it is an estimate, not cash.
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Most of us have probably seen a new startup and wished we were in early. Jay-Z actually did it. The rapper reportedly bought a $2 million stake in Uber in 2013, according to a June 2019 Forbes report by Zack O’Malley Greenburg. The magazine estimated that the stake was worth about $70 million when the company went public in 2019, roughly 35 times the reported purchase price.
A small bet on a young company
In 2013, Uber was growing, and Jay-Z put $2 million in it. He later reportedly tried to buy more shares, but Travis Kalanick, Uber's co-founder and then-CEO, turned him down. The same report put his cash and investments at about $220 million, including the $70 million Uber stake, and his net worth at around $1 billion. It also called him the first hip-hop artist to reach that milestone.
Why you should take the $70 million figure with a grain of salt
The $70 million figure was only an estimate. It’s not cash sitting in a bank. The value of the stake depends on the company’s market value at any given time. The price can rise or fall. We also hear about winning bets far more often than the many that fail. One good story is not evidence that everyone can do it, and Jay-Z’s experience doesn’t tell us about the average beginner’s situation.
Research on early investing
In their study, researchers William Kerr, Josh Lerner, and Antoinette Schoar compared startups funded by two angel investor groups to startups rejected by those groups. They leveled the playing field by looking at companies that just barely made it into or out of each group’s funding threshold.
The funded startups did better on survival, jobs, patents, and web traffic. The authors also found some evidence of more successful exits. But near the cutoff, access to additional financing was no different, which led the authors to suggest that money is not the main thing angel groups offer. The study focused on two groups of angel investors, not celebrities. That doesn't mean that any one investor will make money.
What young investors can learn from it
For readers, the story is more about habits than luck. It took almost six years, from 2013 to 2019, for Jay-Z's Uber stake to reach its estimated $70 million value, so time was a key factor. Forbes also linked his wealth to holdings in alcohol, art, and real estate, which suggests the Uber stake was one part of a broader portfolio. Spreading money across different assets is one of the simplest ways to reduce risk. Not all startups survive, so it makes sense to bet only what one can afford to lose.
The Uber story can serve as a lesson of patience and timing rather than a get-rich-quick scheme. The takeaway is to consider how that number was put together before accepting it. This is not investment advice, and just one success does not guarantee another.
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