Major players are making major investments in the marijuana industry.
Peter Thiel, co-founder of PayPal, a company estimated in the $40 billion dollar range, is deciding to diversify his investment portfolio, and what better business model to follow than the legal pot biz?
According to reports, Thiel's venture capital firm, Founder's Fund, based in San Francisco, announced this Thursday that it would be making a multi-million dollar investment in Seattle-based Privateer Holdings, an industry leading private equity firm in the marijuana industry. Founders Fund reportedly has assets estimated at $2 billion dollars, with major investments in companies such as Spotify, Airbnb, Lyft, and a private spaceflight company known as SpaceX.
In a statement to the L.A. Times, Geoff Lewis, Founder's Fund leading investment partner, said that he and his associates have "been evaluating the cannabis industry for several years and we haven’t seen another company that comes close to Privateer Holdings in terms of strategy, professionalism, talent, expertise, and potential for growth."
As of late, Privateer holdings has been making big headlines in the emerging cannabis industry, with financial backing from Leafly, an online business directory for marijuana dispensaries, as well as Marley Natural
, an emerging premium cannabis brand started by relatives of the legendary reggae musician and activist.
“Privateer Holdings has emerged as the market leader in legal cannabis, which we believe will become a massive industry within the next decade," said Lewis in a statement to the Times, on the investment.
Although the companies involved in the investment have declined information pertaining to the monetary size, statements from Founders Fund indicate that it's in the "multi-million dollar" range, which shows the confidence that Thiel and his investment team have in the marijuana industry.
Despite recent turbulence, most notably stemming from a lawsuit filed by Nebraska and Oklahoma
attorney's, who claim that marijuana from Colorado has been illegally crossing their states borders, Founders believes their investment is sound for a long-term strategy.
Founders Fund is banking on the eventual establishment of Privateer's brands and business models which they expect to go mainstream as marijuana becomes more acceptable in the legal and social spectrum.
For better or worse, it appears as though the seeds of corporate cannabis have been planted, but only time will tell how productive the yield will be.
Get The Breaking NewsEvery Morning
Join us as we report the latest news in the cannabis industry