Two weeks ago, Poseidon held its first ever virtual GreenShoots(™) pitch forum. The event brought together 80 accredited investors to preview five hand-picked cannabis companies chosen by our team to represent areas of opportunity in the industry.

The primary goal of the event was to connect investor attendees with real, vetted deals. During the application process and event itself, our team identified a number of important trends. Below is our breakdown and takeaways from our cannabis-specific pitch event.

Setting the Stage — about the event:

Over 60 companies applied to present their businesses to the GreenShoots Pitch Forum investor attendees…

If you’re a cannabis entrepreneur and founder, you may be familiar with the dichotomies of startup life — Feeling energized, and completely taxed; In control, yet fully engulfed in chaos; Rising up to drive a vision, while being dragged back down into the weeds.

You know you are not alone — but where and how do you plug into other founders feeling the same to get the support you critically need? It may feel like just another problem only YOU can solve.

But it is important and urgent. YOU are important — maybe the most important person in your company…

The cannabis industry is at an inflection point. Essential-business status created an unexpected leap in new consumer adoption. Sales were up 40% in 2020. The results appear in nearly every sector but 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 investments in MSOs can provide risk-averse institutional investors 2–3x returns, those seeking outsized returns and true cannabis alpha must target the early stages. Post seed, when a company is pre-Series A but experiencing…

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. …


Investing in Cannabis globally since 2014.

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