Many investors are turning to the cannabis industry to find gains as the market continues to grow. A survey by Marijuana Business Daily found that on average investors are planning to invest around a half a million dollars on cannabis in the year 2017.
The same survey also found that a few investors are willing to spend around $25 million in the industry. To find a safer investment, some investors are choosing to put their money in venture capital firms that have their eyes set on the cannabis industry. The average investment with that sector is around $100,000 and the average amount put into one cannabis company is $450,000.
Here’s a few companies that are raising considerable investments within the industry.
In 2010, MedMen was founded by Adam barman and Andrew Modlin and has since raised almost $100 million dollars. The MedMen Opportunity Fund has currently invested in seven projects which go from dispensaries in California and New York to large cultivation and grow facilities in California, New York and Nevada. They also have large stake in MedReleaf, a large company in Canada. With a large amount of operational expertise, investors are hoping that the large demand of the industry will help the company to grow.
Photo Partners has been fairly generous with their investments in emerging cannabis companies. They have been seen spending from around $500,000-$750,000 in their company investments. This is a large amount given the average rate invested. Managing Director Brett Finkelstein stated “Since we have the ability to deploy a larger amount of capital, the fund can get more favorable terms. This usually means better valuations, more equity and more control.” Between their client base and large network, their proprietary information will likely be what keeps them afloat.
In addition, they have also assembled a large team of industry players from across the building market of cannabis including technologists, scientists, lawyers, growers, branding superstars, and high-powered ex-DEA government officials that are helping to shape the future of the new industry.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | firstname.lastname@example.org