Cannabis has gone mainstream and is here to stay. Out of the 50 states, 35 have legalized marijuana at some level.
This historic legalization has led to the birth of thousands of cannabis companies, and thus, a new type of investment fund. Cannabis investment funds focus on finding companies to invest in that are set to shake up the marijuana industry.
Founder-friendly investors are firms that create a working environment with an existing founder and management. These firms know a founder can be an asset, opposed to pushing one out after purchasing a company.
Here are 14 Founder Friendly Investors in the Cannabis Space:
- Casa Verde Capital
- CB1 Capital
- Entourage Effect Capital
- Gron Ventures
- JW Asset Management
- Koach Capital
- Liquid2 Ventures
- Measure 8 VP
- Merida Capital
- Poseidon Asset Management
- Thirty5 Ventures
- Viridian Capital Advisors
Arcadian is a venture capital firm based in Los Angeles. Matthew Nordgren, a former University of Texas football player, founded Arcadian in 2017. Nordgren brought valuable experience from building a VC firm focused on sports and entertainment. Arcadian has investments in innovative cannabis companies like Akerna, Fyllo and Skylight Health.
Casa Verde was founded in 2015 by rap legend Snoop Dogg. The firm finds and guides exciting companies in cannabis. Casa Verde has companies such as Surfside, Leaflink and Dutchie in its portfolio.
CB1 specializes in cannabinoid wellness solutions, products and therapies. Todd Harrison, touting experience from Morgan Stanley, founded CB1 after recognizing a strong opportunity in the CBD space. CB1 has a highly-connected network of researchers and advisors, including former presidential candidate Gary Johnson on its advisory board.
Esteemed cannabis investor Matt Hawkins founded Entourage Effect Capital back in 2014. The firm is named after an effect in cannabis and CBD that refers to the way in which hundreds of molecules interact and cooperate with each other to give CBD its healing attributes. Entourage Effect Capital has invested in companies like Ebbu, Acres and Urban Leaf.
FocusGrowth is, you guessed it, focused on finding companies with strong growth potential. Led by an impressive group of executives, FocusGrowth is able to help propel companies to the next level.
Gron, a California-based investment fund, led an investment round for Dutchie in September 2019. Today, Dutchie is the most valuable cannabis tech company after a $350 million capital raise.
JW is named after its founder, Jason Wild. With vast experience in the financial markets, Wild got his start by finding high-growth biotech companies. Today, JW Asset Management has more than $1 billion in assets under management. Because of Wild’s background, JW Asset is able to leverage its experience and network to work with innovative companies in the cannabis and healthcare sector.
Koach Capital is a real estate investment firm that helps find opportune locations to open retail cannabis stores. Koach owns properties in Michigan, Florida, Illinois and Virginia. Koach diligently vets its potential locations, making sure that they'll provide a strong investment opportunity.
Based in San Francisco, Liquid2 is an early-stage investment firm that finds companies to acquire and guide. Rather than replacing a management team, Liquid2 specializes in working with founders and management teams to aid the company's growth. In July, Liquid2 invested in Nabis, California’s leading cannabis distributor. Liquid2 also invested in HERB, a highly successful cannabis technology company.
Measure 8 VP was founded in 2016 by Boris Jordan and Justin Ort. According to Pitchbook, Measure 8 has invested in Algea Care, Grassroots and Baker.
Merida Capital is an alternative investment firm focusing on private equity, real estate and venture capital. In September, Meridia Capital helped Skymint expand its footprint with the acquisition of 3Fifteen Cannabis.
Founded in 2014, Poseidon has nearly eight years of experience in the cannabis investing space. Back in 2016, Poseidon invested in PAX which was later valued at more than a billion dollars in 2019. Poseidon launched its own cannabis ETF with AdvisorShares, the AdvisorShares Poseidon Dynamic Cannabis ETF. Holdings include Scotts Miracle-Gro Company SMG and Grow Generation Corp GRWG.
Thirty5 is the second investment firm on this list founded by a superstar: Kevin Durant. Durant’s jersey number has been 35 throughout his entire career - first in Oklahoma City, then with the Warriors and now in Brooklyn. Thirty5 has a wide range of companies in its portfolio including Coinbase, Postmates and OpenSea. Thirty5 was also an investor in Dutchie.
Founded in 2014 by Scott Greiper, Viridian is one of the most experienced strategic advisory firms in the United States. Viridian has invested in cannabis companies like 365 Cannabis, Norcal Cannabis Company and Conception. To date, the Viridian team has closed about $250 million in financings.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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