Industry Private Equity Firm Founded 2011 | Website privateerholdings.com | |
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Headquarters Seattle, Washington, United States Founders Brendan Kennedy, Michael Blue, Christian Groh | ||
Privateer Holdings is a private equity firm that strategically invests in the legal medical cannabis field. Privateer Holdings is headquartered in Seattle, Washington and is the first firm in the US to focus entirely on cannabis-related companies. The firm's first investment round closed at $7 million on July 13, 2013. On January 8, 2015, Privateer Holdings announced that Founders Fund, one of the world’s largest venture capital firms with more than $2 billion in assets under management, had made a multimillion-dollar investment in Privateer Holdings’ Series B round. The investment marked the first time a major institutional player had placed capital in the cannabis industry. On April 7, 2015, the firm announced the completion of $75 million in Series B financing - the largest private capital raise in the legal cannabis industry to date. This brings the company’s fundraising total to $82 million.
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Privateer holdings announces first institutional investor in legal cannabis industry founders fund
Portfolio companies
Privateer Holdings portfolio companies include Leafly, the world's largest cannabis information resource, Tilray - a premium medical cannabis company located in Nanaimo, British Columbia, and Marley Natural - a partnership with the Bob Marley estate launching a line of cannabis strains, topicals and accessories.
Background
Brendan Kennedy, Michael Blue, and Christian Groh founded Privateer Holdings in 2011. During its first investment round, the firm is developing a pool of $7 million for use in acquiring or starting businesses in the cannabis industry.
Privateer Holdings currently invests only in companies that are ancillary to the direct production or selling of cannabis. Companies in this segment of the industry might include media companies, software companies, and financial services such as insurance.
In 2012 Privateer Holdings acquired Leafly.com, a website that provides reviews of cannabis strains and dispensaries.
In November 2014, Privateer Holdings and Bob Marley's daughter Cedella launched the cannabis brand Marley Natural developed by the Marley family in conjunction with Privateer.
Market
Privateer Holdings' primary market is the medical cannabis area. In Washington, it is estimated that over 360,000 people will shop at state-licensed cannabis dispensaries in 2013, and a 2011 study by See Change Strategy predicted that there would be an $8.9 billion medical-cannabis industry by 2016. Some estimates of the industry's current size range from $14–40 billion, and Privateer Holdings projects that the industry will grow to $50–$75 billion within five years.
Brendan Kennedy
Brendan Kennedy is a graduate of the Yale School of Management and received a Master of Engineering from the University of Washington and a Bachelor of Arts from the University of California, Berkeley. Before founding Privateer Holdings, he worked as chief operating officer for SVB Analytics and was the chief executive officer and founder of Mindability, Inc.
Michael Blue
Michael Blue is the chief financial officer of Leafly and one of three founders at Privateer Holdings. Blue is a graduate of the Yale School of Management and holds a bachelor of business administration from Harding University. In addition to his current positions, he has served in executive-level roles at various investment banking and private equity firms.
Christian Groh
Christian Groh is Partner of Privateer Holdings and one of the three founders for the firm. Groh holds an MBA from San Francisco State University and a Bachelor of Science from California Maritime Academy. Prior to Privateer Holdings, he worked as head of sales for SVB Analytics.