Jan 082015
 January 8, 2015
peter thiel marijuana founders fund

(Peter Thiel via Wikipedia)

Today might go down as one of the most significant days in the history of the marijuana industry. A very high profile investment firm announced today that it is investing in the marijuana industry. The investment firm is Founders Fund, and the company they invested in is Privateer Holdings. Per Fortune:

Founders Fund, the investment firm created by Peter Thiel, has joined a Series B round of funding worth $75 million for Privateer Holdings. More than $50 million of the round has closed so far, including a $15 million convertible note from February of last year. The entire round will officially close in a few weeks, Kennedy says. Founder’s Fund has not disclosed the exact amount of its investment beyond “multi-millions” of dollars.

The funding from Founder’s Fund is a significant milestone for Privateer, which, in addition to Marley Natural, operates Tilray, a mail-order service for medical marijuana in Canada, and Leafly, a sort of Yelp for dispensaries. Large investment firms have been wary to do business with marijuana companies, even in states like Colorado where the drug is legal, because it remains illegal in the eyes of the federal government.

The significance of the investment by Founders Fund can not be understated. Up until now, most of the investments that have been made in the marijuana industry have come from private investors that were far less high profile and far less established than Founders Fund. Founders Fund, and Peter Thiel, are a large reason why Facebook and Paypal are as popular as they are today. Whether or not the same level of success will be achieved in the marijuana industry is yet to be seen, but Founders Fund entering the marijuana industry is huge, not just for Privateer Holdings, but for the rest of the industry as well. If the marijuana industry wasn’t getting attention from big time investors before today, it most certainly is now.

The announcement of the investment didn’t come without criticism. Many industry members and especially activists were quick to point out that Peter Thiel has made some disparaging complaints about marijuana use by members of the company Twitter. The criticisms by marijuana industry and activism members about Mr. Thiel also came with criticisms about Privateer’s leader, Brendan Kennedy, who also has made numerous disparaging comments about marijuana users. Those criticisms are obviously well founded. However, the investment in Privateer Holdings by Founders Fund is still very significant, and I’m very curious to see if it opens the floodgates to investments by other well established investment firms into the industry.

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  20 Responses to “Marijuana Industry Receives Possibly Most Significant Investment To Date”

  1.  

    these guys are in it for the green. Money. I will only buy from local shops locally grown. Big MJ companies are not good for anyone

  2.  

    And he is going to depend on government to enforce what ever monopoly position he can obtain.

    Meet the new boss.

    youtu.be/LinXv5qRXPI

  3.  

    It was inevitable that big business would sit down at the dinner table. And it will probably accelerate the normalization of marijuana consumption, so be a positive for reform.

    But now there will be many powerful voices speaking for the marijuana industry – so many, and so large, it will begin to seem like marijuana reform is all about them.

    But it isn’t. It has always been about the consumers – those enlightened few millions who refused to be bullied into giving up their freedom and their health to escape the persecution of the prohibition profiteers.

    I hope Weed Blog, and others, will help consumers acquire a long-deserved voice in marijuana policy. It may be even more difficult for us now that we have to be heard past the megaphones of Madison Avenue.

    •  

      Legal cartels and crony capitalism is what we are asking for when we say “tax and regulate”.

      No more regulated than tomatoes. No more taxed than tomatoes.

      •  

        At the state level, that’s doable. After watching a documentary called Farmageddon, I realized that once cannabis is nationally legalized, interstate commerce with cannabis will be possible, which is when crazy FDA and USDA regulations will make it virtually impossible for anyone but the largest producers to retail their products. The documentary showed armed SWAT raids destroying perfectly safe food at the behest of the federal government (while holding a family of six at gunpoint) for running a community food co-op.

        They weren’t growing cannabis, they were growing ordinary vegetables, and they were raided by men wearing balaclavas with fully automatic weapons. The agents held the *children* at gunpoint while the farm was trashed.

        The tomato slogan is good to secure home-growing rights, certainly, but just ask anyone at a Farmer’s Market how insane some regulations are when it comes to retailing them. Federal regulation is going to be the “other edge” of the double-edged sword, federal rescheduling.

      •  

        Hmm. Do we care about children eating tomatoes? – Do we care about them consuming marijuana? The comparison doesn’t hold up.

        But, other than keeping marijuana from children, there is no need for other regulations, or taxes higher than for tomatoes.

        The problem is, do we want to hold up the re-legalization of marijuana while we use the issue to reform government? I would hope that’s a resounding “NO!”

        That could be a decades-long effort that may not even succeed.

        No. Freedom for the cannabis culture is WAY past due. Just fit marijuana in with the commerce for every other product – giving millions relief from the vicious persecution.

        Release the hostages. – THEN we can work at making a more rational society in general.

        •  

          There was no regulation of cannabis before 1937. It didn’t seem to be a problem.

          BTW the current moves will in fact change nothing. Police will still be showing up to protect government granted monopolies (regulation). And the taxes so far enacted guarantee a black market. Which insures more armed thugs.

          The only way to insure no hostages is no regulation. Eric Garner.

          BTW children eating cannabis is not a problem. It is based on the fallacy that government can keep you safe from your environment. Alcohol prohibition is still in effect for those under 21. It didn’t stop me from being a drunk at age 16.

          •  

            >>>”the current moves will in fact change nothing. Police will still be showing up to protect government granted monopolies (regulation).”

            How does it change nothing when people who used to be subject to arrest can now buy marijuana legally?

            That’s a HUGE change, of course. – Many have forgotten this movement is about the consumers, not the growers and sellers.

            Alcohol regulations restricting sales to minors DO work. They put at least one liable adult between the sellers and children. That’s a barrier many children don’t try getting around.

        •  

          If these corporations sell an inferior product, people will still go for the buds grown by people who care about the final result even though it costs more.
          Let the market decide what we want, corporate chemical soaked weed or cannabis grown by someone proud of his plants & buds.
          I know what my choice will be!

  4.  

    buy local buy from small shops, these big companies will make it more “normal” and common for Marijuana but other than that garbage and don’t want to give my money to the rich getting richer

  5.  

    Real significant. Just a new guy with a big axe, ready to stomp on some small trees… Bob would be proud… Ready for the worst cannabis in the nicest packaging possible? Here it comes… What a joke Johnny. Your friends and neighbors still will grow the best chronic long after this hits the shelves.

    •  

      “the worst cannabis in the nicest packaging” … very true more than likely these large operations, even medical, use massive amounts of pesticides

  6.  

    The republicans are starting to salivate.

  7.  

    They have new Natural Detox breakthru’s too! They just found one in texas called Palo Azul. have you guys heard about the Palo Azul Plant ? it’s a Tea made from the Bark of the Palo Azul plant. and it makes people not show up positive for T.H.C when they take a pee test.? I even went to my Doctor and asked him how that was possible.. He said he had never heard of Palo Azul and then he researched on his laptop for a second and this is what he said..” Palo Azul contains NEGATIVE charged alkaloids that draw out toxins with a positive charge such as THC , ( a negative charge pulls) .Similar to how an air ionizer uses a negative charge to pull the toxins out of the air.. Once the negative alkaloids enter the urinary tract system it bonds on to the toxins and changes their genetic signature ..making the toxins a different compound altogether now ,making them undetectable! , google it.. the fact that some cheap little natural plant from the rain forest can do all that blows my mind!

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