eter Thiel, co-founder of PayPal and early
investor in Facebook, knows how to spot a high return opportunity when he sees
it. He has now , like a host of other
investors including Warren Buffet, decided that cannabis is the hot investment.
According to Business Insider, Thiel
plans to invest in a Series B round of financing for Privateer Holdings, a
private equity firm now raising $75 million to invest in cannabis related
Privateer is currently working with the
family of reggae legend Bob Marley to launch a company selling not only strains
the singer smoked, but also runs Leafly – a dispensary listing service. It has also invested in Tilray, a British
Columbia based company which mails cannabis to users and generated $200,000 in
revenue this year.
The company has a wide list of other
industry investments which range from starting new companies to investing in
existing ones located in the United States and Canada. Privateer was founded in 2011 and is
positioning itself to be a major player in particularly the cannabis supply
chain. The company is already generating
significant revenue from a wide variety of investments. This year it expects to generate nearly $11
million in net revenue. The company
expects to reach profitability next year with and generate $440 million by
Weedmaps, Leafly’s main competitor in the
dispensary listing space, has already forecasted that it expects to make about
$30 million this year, in direct comparison.
Started by a nearly bankrupted former IT worker, Justin Hartfield in
2008, the company also made news this year by buying ad space over Times Square
before CBS, which owned the space, squashed the idea on the first day of the ad
on April 1.