Peter Thiel's Founders Fund Invests Millions in Marijuana Industry
In a major milestone for the entire legal cannabis industry, Privateer Holdings today announced that Founders Fund, one of the world’s top venture capital firms with more than $2 billion in assets under management, has made a multi-million dollar investment in Privateer Holdings’ Series B round.
The investment from Founders Fund marks the first time a major institutional player has placed capital in the cannabis industry, and is a significant next step as the industry moves out of the shadows and into the light.
“Founders Fund is known for making some of the most lucrative and radically transformational investments of the past decade,” said Privateer Holdings CEO Brendan Kennedy. “With this investment they are signaling that they, like us, believe that the end of prohibition and the social harms it causes is inevitable.”
“Privateer Holdings has emerged as the market leader in legal cannabis, which we believe will become a massive industry within the next decade,” said Founders Fund Partner Geoff Lewis, who is leading the firm’s investment in Privateer Holdings. “We’ve been evaluating the cannabis industry for several years and we haven’t seen another company that comes close to Privateer Holdings in terms of strategy, professionalism, talent, expertise, and potential for growth.”
Privateer Holdings, the world’s first private equity firm investing exclusively in the legal cannabis industry, was founded in 2010 by three MBAs with decades of experience in private equity and venture capital. The firm previously closed $22 million in funding through the combination of a Series A fundraising round and a convertible bridge note. Until today’s announcement, Privateer Holdings’ investors consisted solely of ultra-high net worth individuals and family offices.
Founders Fund was the first institutional investor in revolutionary companies SpaceX and Palantir Technologies, and one of the earliest investors in Facebook. The firm is sector and stage agnostic, with a portfolio that includes Airbnb, Counsyl, Knewton, Lyft, Oculus, SolarCity, Spotify, Stripe, and ZocDoc. Recent portfolio company exits include The Climate Corporation, DeepMind, and Yammer.