When it comes to investing in an emerging cannabis venture, you have a lot of options. If you’re unfamiliar with the industry, here are some tips:
iAnthus Capital
iAnthus Capital Holdings, Inc. (iAnthus) is an emerging cannabis company that owns and partners with licensed marijuana operations throughout the United States. It is an investment firm founded by entrepreneurs with decades of experience. Its business model includes a business plan with an exit strategy for investors. In addition to investing in marijuana companies, they also support female weed plant seeds growing facilities.
iAnthus Capital Holdings, Inc. (iAnthus) is a Canadian cannabis company that began trading publicly last September. It currently operates in five states: New Mexico, Colorado, Vermont, Massachusetts, and Florida. It intends to acquire existing cannabis operators and develop operations in new states. The company plans to hold one of the ten licenses in each state, which will give it a total of ten.
1906 New Highs
As a cannabis venture, 1906 New Highs is a hot topic these days. Its flagship product, the 1906 Drops, is fast-acting, swallowable pills with a dose of 2.5-5mg of THC and 25mg of CBD per pill. Its zero-calorie formula addresses the needs of active, health-conscious adults. The products are designed to enhance mood, libido, and energy. The company was named a CB Insights Intelligence Unit company and has been mentioned in two research briefs and one Expert Collection.
In February, Connecticut Innovations, the state’s quasi-public venture capital arm, invested in the company, which produces low-dose cannabis pills and edibles. Although this move has alarmed marijuana activists and entrepreneurs alike, the funding will help the company scale its operations and enter the Connecticut market. The investment will enable 1906 to expand its operations in the state. Ultimately, the 1906 New Highs Company hopes to expand its operations in Connecticut and expand its product offerings.
Flowhub
Flowhub is a software platform for processing transactions for cannabis businesses. The company has closed a $19 million strategic raise to expand its reach in emerging markets and expand its social equity program. The funding was led by venture capital firms Headline and Poseidon Asset Management and rapper Shawn “Jay-Z” Carter. Flowhub has more than 400 dispensaries and processes more than $1 billion in sales each year.
Flowhub’s POS software lets consumers use their debit cards to purchase cannabis products and processes transactions just like a bank account withdrawal. Jay-Z’s fund recently invested in Flowhub. The rapper has also invested in California-based cannabis company Caliva. Jay-Z has a stake in Caliva and helped develop the brand Monogram. Jay-Z has also invested in Flowhub. Left Coast Ventures, his social equity venture fund, acquired the company through a SPAC deal.
Confident Cannabis
A new website called Confident Cannabis is helping the cannabis industry find the products it needs. The website allows users to search thousands of products for lab-tested, compliant strains and products. They can sort the results by cannabinoid profile, terpenes, price, male and female weed seeds, and more. Once they’ve narrowed the results down to a few brands, they can then buy the products.
Confident Cannabis also manages incoming inventory and customer relationships.
Confident Cannabis is a wholesale platform powered by verified lab data. The company recently raised $12 million in Series A funding. The new funds will allow the company to expand into new markets and expand its wholesale platform. The company is backed by a variety of investors, including Poseidon Asset Management, Y Combinator, Base Ventures, and FJLabs. With the funding, the company plans to accelerate its growth and grow its business into a national brand.
Hypur Ventures
Hypur is a venture capital firm focused on the legal cannabis industry. The company is led by Mr. Sozio, the CEO of MTech Acquisition Corp., a Nasdaq-listed special-purpose acquisition company focused on cannabis-related businesses. He also co-founded Hypur Ventures, L.P., an emerging cannabis venture capital firm. His prior experience includes serving as a Partner in a family office investment firm, and managing a portfolio of private investments.
The company has invested in three companies in the last four years, including a recent investment in the cannabis company Headset as part of Seed VC in January 2017. It has also invested in one fund, Hypur Ventures II. The company’s team consists of eight individuals. The firm has raised approximately $20 million. This investment represents Hypur Ventures’ largest investment in Blue Line since its founding in 2014.
TPCO
TPCO Holding Corp. is a vertically integrated cannabis company focused on the wellness and recreational markets. Its products include vaporizer cartridges, tinctures, chocolates, beverages, and capsules. Founded by Michael Auerbach, the company is based in San Jose, California. Its products are expected to generate pro forma revenues of $334 million by 2021. TPCO aims to establish two flagship stores in Los Angeles by 2021.
The Parent Company is seeding a social equity venture with $10 million and intends to contribute 2% of its net income to the legal cannabis industry. The venture is set to give minority entrepreneurs equal access to the cannabis industry, an area in which they have suffered from the war on drugs and generational socio-economic disadvantages. The company plans to recruit top performers in the entertainment industry to endorse its products, and will also lead initiatives to “rectify wrongs” that occurred when cannabis was illegal. Jay-Z also intends to help convicted cannabis offenders.