The legal U.S. cannabis industry is at an inflection point. Essential-business status during COVID-19 has created a welcomed, albeit unexpected, leap in consumer adoption and sales of legal cannabis sales in 2020. The results, now being reflected in record growth rates across the industry, are most visible in the quarterly reports of the publicly traded multi-state operators (“MSOs”). Green Thumb Industries’ sales were up 133% and CuraLeaf’s sales were up 200% in the LTM as of Q4 2020.

Though MSO investments provide many institutional investors target 2–3x returns, investors seeking outsized returns and true cannabis alpha must invest in early…

The cannabis industry is real. Yes, it is still emerging. Yes, cannabis is still federally illegal. But things have changed dramatically in the 7 years since we launched our first professionally managed investment funds. Here are just a few reasons why we believe cannabis is still the right industry to invest in today.

Meteoric Growth

The cannabis industry will double in size over the next 5–6 years. Legal U.S. cannabis sales exceeded $17.5 billion in 2020, up 46% over $12.1 billion in 2019. Forecasts predict sales will double again to $41.3 billion in 2025- and that’s just conservative estimates for…

…And 2021 holds great promise

By Michael Boniello, Managing Director at Poseidon

In late 2019, Poseidon wrote a white paper called the Cannabis Alpha Wave which is a sector specific consideration of the Gartner Hype Cycle. In this paper, we suggested 2020 would be the “Darwin Phase” of the cannabis market’s cycles. …

Understanding Critical Components

By Andres Navia

‘Flagging’ important considerations for preferred stock

Our Portfolio Manager Andres Navia is at it again! This time he really digs in on preferred stock term sheets. There are many aspects to these term sheets that are critical for founders and investors to understand in all areas from cap table impacts to corporate governance. Our ideal here is that the negotiation process is made clearer and more productive with this knowledge and that all parties are established for success across various rounds of investing and raising money.

A typical investment process has some variation of the following 6 stages: 1.Sourcing, 2…

And why we believe Cannabis is the Greatest GAARP (Growth at a Reasonable Price) Story of a Generation.

by Morgan Paxhia, Co-Founder Poseidon

As investors in cannabis for the last 8 years, we have managed through more than most could fathom in a lifetime. We had one of the most detested 100X returns. We lost bank accounts, we experienced insurance premiums skyrocket due to bad underwriting and early industry frauds. We invested in companies from inception when they had just a few dozen employees to thousands today. We saw forest fires destroy lives and farms, saw companies raided by armed…

By Andres Navia

My team at Poseidon proposed that I write a post on our most frequently used valuation methodology at our firm and I would like to start this post by thanking them for doing that. I think that our valuation methodology is really straightforward, manageable, and should be great for founders to read about.

Note to founders: When fundraising, it’s important to consider the different ways that investors are contemplating their potential participation in your company. This may dictate whether you feel that you should raise venture capital (VC) from a fund, or rather focus on raising financing…

The famous words of financial beacon Warren Buffett…and who can disagree? The man has been a legend and a guidepost in our firm Poseidon before we even officially formed. We often cite the following classic Buffett quote as mantra:

We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.

My brother Morgan has idolized Buffett since he started investing in his E-Trade account with his landscaping money in his early teens. He was spending a lot at the fuel pump that summer, so first thing he bought? Chevron. …

Many have already heard our origin story of losing both our parents to cancer within 5 years’ time and how that led us to believing in cannabis and investing in the industry.

What we haven’t shared as much, is our point of view in life and business because of these unfortunate losses.

When Challenges Make You Stronger

To begin with, we were young when our parents died. Our father died in 1996 and our mother in 2001, this left us to make serious decisions early in life. …


Investing in Cannabis globally since 2014.

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