Cannabis has gone mainstream and is here to stay. Of the 50 states, 35 have legalized marijuana at some level.
This historic legalization led to the birth of thousands of cannabis businessesand therefore a new type of investment fund. Cannabis investment funds focus on finding companies to invest in that are ready to disrupt the marijuana industry.
Founder-friendly investors are companies that create a work environment with an existing founder and management. These companies know that a founder can be an asset, instead of pushing one after buying a business.
Here are 14 founder-friendly investors in the cannabis space:
- Capital of Casa Verde
- CB1 Capital
- Entourage Effect Capital
- Gron Ventures
- JW Asset Management
- Capital Koach
- Liquid2 Ventures
- Measure 8 VP
- Capital of Merida
- Poseidon Asset Management
- Thirty5 Companies
- Viridian Capital Advisors
Arcadian is a Los Angeles-based venture capital firm. Matthew Nordgren, a former University of Texas football player, founded Arcadian in 2017. Nordgren brought valuable experience in building a venture capital 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 accompanies exciting companies in the field of 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 Morgan Stanley experience, founded CB1 after recognizing a strong opportunity in the CBD space. CB1 has a network of highly connected researchers and advisors, including former presidential candidate Gary Johnson on its advisory board.
Esteemed cannabis investor Matt Hawkins founded Entourage Effect Capital in 2014. The company is named after an effect in cannabis and CBD that refers to how hundreds of molecules interact and cooperate between them 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 high growth potential. Led by an impressive group of leaders, FocusGrowth is able to help take businesses 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 fundraising of 350 million dollars.
JW is named after its founder, Jason Wild. With extensive experience in the financial markets, Wild got his start finding high-growth biotech companies. Today, JW Asset Management has over $1 billion in assets under management. Due to Wild’s experience, JW Asset is able to leverage his experience and network to work with innovative companies in the cannabis and health sector.
Koach Capital is a real estate investment firm that helps find opportune locations to open cannabis retail stores. Koach owns properties in Michigan, Florida, Illinois and Virginia. Koach diligently vets its potential locations, ensuring they will provide a solid investment opportunity.
San Francisco-based Liquid2 is a startup investment firm that finds companies to acquire and mentor. Rather than replacing a management team, Liquid2 specializes in working with founders and management teams to help grow the business. In July, Liquid2 invested in Nabis, California’s leading cannabis distributor. Liquid2 has also invested in HERB, a very 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 specializing in private equity, real estate and venture capital. In September, Meridia Capital helped Skymint expand its presence with the acquisition of 3Fifteen Cannabis.
Founded in 2014, Poseidon has nearly eight years of cannabis investment experience. In 2016, Poseidon invested in PAX, which was later valued at over $1 billion in 2019. Poseidon launched its own cannabis ETF with AdvisorShares, the AdvisorShares Poseidon Dynamic Cannabis ETF. Holdings include Scotts Miracle-Gro Company machine gun and Grow Generation Corp. GRWG.
Thirty5 is the second investment company on this list founded by a superstar: Kevin Durant. Durant’s jersey number has been 35 throughout his 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 consulting firms in the United States. Viridian has invested in cannabis companies such as 365 Cannabis, Norcal Cannabis Company and Conception. To date, the Viridian team has closed approximately $250 million in financings.