cannabis.jpg (Photo : www.ft.com)
One year after cannabis was legalized to be sold in Colorado, an inexperienced American cannabis industry bags its first huge institutional investor.
Founders Fund, a leading San Francisco venture capital firm which is partially owned by Peter Thiel, PayPal co-founder, announced on Jan. 8, Thursday, that it is making a multimillion dollar investment on a cannabis focused private entity named Privateer Holdings.
Big investors have stayed on the sidelines and have been waiting for the federal prohibition to be lifted, before they consider the emerging cannabis legalization industry. The rising organic business has been making noises now since the backing up of major tech investor. It may encourage other big financial players to join in the green rush.
The news have given the cannabis region to lift its credibility as it keeps grappling between conflicts on laws on federal and state. And it shall help with their limited access to banks, too.
Deputy Director of the National Cannabis Industry Assn. in Denver, Taylor West said that this is a milestone for legal cannabis users. It only shows that great opportunities are possible and how others could benefit from it, and that the pot industry is solid enough for a big investor to step in.
Founders Fund is a reputable and huge in the Silicon Valley circle. Its $2 billion portfolio includes Spotify, Airbnb, and Lyf. It also backed Elon Musk's private spaceflight company, SpaceX.
Privateer Holdings has become a legal cannabis market leader, in which is expected to be a bigger industry by the next ten years. Geoff Lewis, Founders Fund partner, admits that Privateer was chosen due to its wide and long term plans which had managed most aspects of the business that includes growing marijuana and reviewing strains.
