Access to capital within the cannabis industry is one of the main challenges for many businesses. And starting and running cannabis businesses can be expensive, so investment capital is in high demand. Because cannabis is still federally illegal, most banks are unwilling to service cannabis businesses that touch plants, so the demand for alternative funding sources is extremely high.
As the Secure and Fair Enforcement (SAFE) Banking Act continues to fail the US Senate so far, some states, such as West Virginia, California and Pennsylvania, are passing their own legislation to allow banks to ‘within their borders to serve the industry, signaling changes could also be imminent in other states.
Yet until widespread reform occurs, capital raises remain highly competitive among cannabis companies. Here, Cannabis time has compiled a list of some of the investment firms that back cannabis companies.
Editor’s note: Cannabis time has not fully verified each company, and inclusion does not imply endorsement. This is not an exhaustive list of cannabis investors.
Capital of Ackrell
“Ackrell Capital is an independent investment bank focused on providing financial advisory services to global middle market companies and emerging growth companies in key industries,” according to the firm’s website. Among its diverse set of clients, Ackrell has served cannabis and hemp companies such as Hempyre and Green Thumb Industries, with domestic and international transactions across all industries totaling more than $50 billion, according to its website.
Altitude Investment Management
“Altitude Investment Management has made multiple investments in the cannabis industry while navigating the rapidly changing dynamics of the cannabis industry,” according to its website. Its portfolio includes C4 Distro, Springbig, Grassroots, Canndescent, Flowhub and more.
“Archytas Ventures is a private investment company that provides flexible financing solutions across the capital structure to companies with exceptional management teams to fuel growth and create value,” according to the company’s website. . Its portfolio includes Bloom Farms, Cellibre, Sublime and more.
AVANA Capital offers commercial real estate loans, construction loans and bridging loans to cannabis-related businesses, including growers, manufacturers, distributors and retailers.
Base Ventures is a venture capital firm that invests in startups in various industries, including cannabis. Its portfolio of cannabis companies includes Confident Cannabis and Baker.
Canna Angels, LLC
Canna Angels’ mission is to “provide its accredited investors with carefully selected, high-quality emerging companies either directly involved in the cannabis industry or in supporting products and services,” according to its website. His profile includes cannabis companies such as Front Range Biosciences, HiFi Farms, Bloom Automation, BayMedica and more.
As an independent investment bank, Canaccord Genuity offers “a wide range of advisory and capital raising services as well as complex cross-border expertise to emerging and established companies,” according to its website. Canaccord Genuity’s portfolio includes Tilray Brands, Aurora Cannabis, Curaleaf Holdings and more.
Capital of Casa Verde
Casa Verde Capital participates in all stages of the funding cycle “with an emphasis on investing in scalable, capital-efficient businesses led by world-class entrepreneurs,” according to its website. Casa Verde’s portfolio includes many cannabis companies from around the world, including Dutchie, Green Tank, Ace Cann, Leaflink, Miss Grass and many more.
“CB1 Capital is an investment manager and supply chain advisor specializing in cannabinoid-based wellness solutions, products and therapies that address a wide range of unmet medical conditions or have cases of ‘commercial use,’ according to its website.
Entourage Effect Capital
Entourage Effect Capital, formerly known as Cresco Capital Partners, is a cannabis investment firm that funds companies that are “positioned to scale ahead of federal legalization,” according to its website. Its portfolio includes Curio Wellness, Organic Remedies and more.
Gotham Green Partners
Gotham Green Partners invests in cannabis companies “across all verticals and targets[s] best-in-class operators with differentiated business models, defensible intellectual property and scalable platforms,” according to its website. The company’s portfolio includes FORIA, MedMen, Flow Kana and many others.
Capital of the green acre
Green Acre Capital has invested more than $100 million (CAD) in the global legal cannabis industry, according to its website, and its funds “target the rapidly growing cannabis sector.” Its portfolio includes Canndescent, Aqualitas, Fire & Flower and more.
Measure 8 venture capital partners
Measure 8 Venture Partners is “an alternative investment vehicle” created to capitalize on the emergence of the global cannabis industry, according to its LinkedIn. Its specialties include cultivation and processing and its portfolio includes Baker, Grassroots and more.
Merida Capital Holdings
“Merida Capital Holdings’ investment thesis is focused on the normalization of cannabis in the United States and globally and is primarily based on four distinct verticals that span the medical and adult use markets and ecosystems,” according to its site. website. The company seeks “compelling long-term value as the industry matures by investing in well-run, revenue-generating businesses that provide essential products or services to cannabis-based businesses.” Merida Capital Holdings portfolio includes Cresco Labs, Leafly, Jushi and many other top cannabis companies.
“Navy Capital seeks to find best-in-class companies in key verticals of the global cannabis industry,” according to Crunchbase, including technology and agriculture. Navy Capital’s portfolio includes Cann, Connected Cannabis, MariMed and more.
“Paradigm Capital is an independent, employee-owned Canadian investment dealer focused on companies with excellent long-term secular growth characteristics, including cannabis companies,” according to its website. Its portfolio includes Cansortium, Columbia Care and more.
Phyto Partners is a cannabis venture capital fund “that provides debt and equity capital to private cannabis companies,” according to its website. Phyto’s cannabis portfolio includes a large number of companies, including Flowhub, Marijuana Doctor, Front Range Biosciences and many more.
Poseidon Asset Management
“The Poseidon team has focused on a diversified strategy covering a range of company stages and industry sub-sectors across the capital spectrum” within the cannabis industry, according to its website. Poseidon’s portfolio includes Cannadips, Flowhub, Distru and more.
Salveo Capital “seeks to build long-term, sustainable businesses that will help reshape the image of legal cannabis,” according to its website. Salveo’s portfolio includes Headset, Flow Kana, Tokyo Smoke and more.
Silverleaf Venture Partners
Silverleaf Venture Partners is an investment manager that made cannabis “its primary investment focus” in 2017, according to its website, after “Silverleaf Venture Partners identified and recognized the potential in the cannabis industry to realize outsized growth. Originally, they invested only their personal capital in nearly a dozen of the most respected companies in the industry. Today, the partners selectively manage external capital, which are invested alongside their own Partners have made over 30 investments in notable companies including Jane Technologies, Headset, Nabis, Ebbu and many more.
“The Arcview Group is a vertically integrated investment company serving the cannabis and hemp industry, founded on social justice and responsibility,” according to its website. Its partners include several cannabis companies, including AlphaRoot, Green Grows CPA and others.
Tress Capital is a private equity firm that invests in and finances cannabis-related businesses, including cultivation, lab testing, processing and more. Tress’ portfolio includes Cannabis Now, Headset, North Bud and more.
Capital of the Tuatara
Tuatara is a private equity firm specializing in the global cannabis industry. Its portfolio includes Long Play, Green Dot Labs, Slang Worldwide and many more.
Upwise Capital provides cannabis real estate financing, cannabis equipment financing, non-dilutive debt capital, construction loans, inventory financing and more. Its clients include Meadows in Bloom, MedLeaf, Silver Peak and more.
Viridian Capital Advisors
Viridian Capital Advisors “raises capital, executes M&A transactions, provides corporate restructuring and performs sophisticated financial modeling for our clients,” according to its website. His investments include 365 Cannabis, THC Design and more.