The number of VC’s actively investing in Cannabis businesses is growing — in this series we will highlight some of the main players
Privateer Holdings
Famously backed by Peter Thiel’s Founder’s Fund (the first institutional investor to enter the cannabis industry), this private equity firm became the first in the Cannabis business to cross the $100 million mark in fundraising as it closed a $40 million round in 2016. It has since gone on to raise a further $100 million in a series C round in 2018 increasing the total funding to $228 million.
Founded in 2010 in Seattle by three visionary entrepreneurs with decades of experience in investment banking and venture capital, Privateer Holdings represents a group of investors from around the world seeking to end cannabis prohibition and the social harms it causes.
Through a combination of acquisitions, investments and incubation, Privateer is focused on building a portfolio of global brands that will lead, legitimize and define the future of cannabis.
Portfolio
Its portfolio includes medical marijuana producer Tilray, The Goodship which manufactures premium baked goods and candy with infused weed, Bob Marley’s marijuana brand Marley Natural, and Leafly, often called the ‘Yelp’ of the pot world;
Tilray Inc. is a federally licensed, GMP-certified medical cannabis producer located in Nanaimo, British Columbia, Canada. Privateer owns 76 percent of Tilray Inc. The company operates a 60,000 sq. ft medical cannabis research and production facility. Tilray supplies pharmaceutical-grade medical cannabis products. Tilray’s primary market is Canada, where it serves more than 20,000 patients, but the company also exports medical cannabis products to other countries. Tilray was the first company to legally export medical cannabis products from North America to Australia, Brazil, Chile, the European Union, and New Zealand
Privateer Holdings acquired Leafly in 2011. Leafly is the largest cannabis website in the world, with more than 11 million unique visitors per month. In 2014 Leafly became the first cannabis company to place an advertisement in the New York Times.
In November 2014, Privateer Holdings and Bob Marley’s daughter Cedella launched the cannabis brand Marley Natural developed by the Marley family in conjunction with Privateer. Marley Natural launched its inaugural collection of cannabis products, body care, and smoking accessories in Los Angeles in February 2016. The brand sells cannabis in California, Oregon, and Washington.
Founded in 2014, The Goodship creates cannabis-infused baked goods, chocolates, and confections. In December 2017, Privateer Holdings acquired the business. Privateer Holdings CEO Brendan Kennedy said he was attracted to Goodship because of its products. “We were instantly drawn to The Goodship because their team is already setting and exceeding the standard for what a cannabis edibles brand should be,” Kennedy said. “This is an exciting time to be in the cannabis industry, and we’re looking forward to working together to develop innovative products and bring Goodship to new legal markets across North America.”
Privateer Holdings have three fundamental beliefs:
1. Cannabis is a mainstream product consumed by mainstream people;
2. The end of cannabis prohibition is inevitable; and
3. Brands will determine the future of the cannabis industry.
