Major Silicon Valley Tech VCs Adding Cannabis to Portfolio

I know you may be confused, but YES marijuana (pot, weed, 420, etc) IS in the fintech sector, as we’ve recently reported. Don’t think so? Well Silicon Valley tech VC’s are tiring of flying cars, asteroid mining and such and are looking at the cannabis sector. ‘Agtech’ as it were. Some of these VC’s that helped Uber, FanDuel and others are getting active. Here is a great read if you want to expand your horizons into a new sector. So, how HIGH can these stocks go? (sorry)

(Bill Taylor/CEO)

Silicon Valley investors are known for pouring money into risky bets like flying cars and asteroid mining. Now, a handful are diving into one of the few industries that makes most of their peers squeamish — pot.

As the marijuana industry soars, with New Frontier Data predicting legal pot sales will balloon to more than $24 billion by 2025, a handful of venture capitalists are climbing on board — albeit cautiously. Those putting money into the industry say it’s a rare chance to stake an early claim in a lucrative market with little competition from other investors. But they’re keeping one eye on President Donald Trump’s administration, watching for signs of a federal crackdown that could derail the burgeoning industry.

“It’s a completely untapped market with huge opportunity,” said Tusk Ventures Founder and CEO Bradley Tusk, an investor in San Francisco-based marijuana delivery darling Eaze.

For Tusk Ventures, a VC firm that specializes in helping startups like Uber and FanDuel navigate complex regulatory landscapes, the controversial marijuana industry seemed like a natural fit. The firm is considering a second investment in the space.

And it’s not alone. DCM Ventures, a 21-year-old VC firm with an office on Sand Hill Road, also invested in Eaze, as did Fresh VC and the Winklevoss twins — the brothers who made headlines by claiming they came up with the idea for Facebook. Other investors dabbling in pot companies include prestigious Mountain View-based startup accelerator Y Combinator, Peter Thiel’s Founders Fund and New York City-based Lerer Hippeau Ventures — which also backs big names like Soylent, which makes meal-replacement drinks and bars popular among Silicon Valley techies, and Venmo, a mobile payments platform.

Industry insiders say there’s been a slow uptick in interest. Investors have poured nearly $30 million into marijuana-tech startups — companies that sell marijuana-related technology or use tech to sell cannabis products — so far this year, according to PitchBook Data. That means 2017 is on track to beat last year’s total of $49 million. But much of that money is coming from niche firms created exclusively to fund cannabis-related businesses, such as Phyto Partners and Poseidon Asset Management…”