By Natan Ponieman and Javier Hasse.
For many people, investing in cannabis has become tantamount to buying shares of publicly-listed companies like Canopy Growth (NYSE:CGC), Curaleaf (OTCQX:CURLF) or Tilray (NASDAQ:TLRY).
However, a substantial number of well-known privately-owned companies in the cannabis space continue to raise capital through private equity funding and have not listed their shares in public stock exchanges.
While going public is an effective method for raising capital, it’s not necessarily the ultimate goal for every private company or startup. Releasing shares in a public exchange can sometimes become an operational nightmare, requiring entire teams to deal with filings and public disclosures.
Additionally, selling part of a company to the public can dilute shareholder value and limit the management team’s freedom to make decisions.
For these reasons, many companies decide to remain private if they can continue to secure capital through existing revenue or private financing.
Below is a list of the top 15 privately-held cannabis, CBD and hemp companies by total funding, according to Crunchbase data.
Contents
- Pax Labs – Total Funding: $541,699,995
- Parallel – Total Funding: $355,740,491
- LeafLink – Total Funding: $339,000,000
- Dutchie – Total Funding: $253,000,000
- Privateer Holdings – Total Funding: $228,000,000
- PharmaCann – Total Funding: $206,315,821
- Eaze – Total Funding: $202,500,000
- Flow Cannabis Co. (Flow Kana) – Total Funding: $175,500,000
- Holistic Industries – Total Funding: $156,095,000
- Mile High Labs – Total Funding: $100,000,000
- Sanity Group – Total Funding: $78,559,153
- Syqe Medical – Total Funding: $70,000,000
- Kadenwood – Total Funding: $67,000,000
- Fyllo – Total Funding: $58,000,000
- Vertical Companies – Total Funding: $58,000,000
Pax Labs – Total Funding: $541,699,995
Pax Labs is a manufacturer of electronic vaporizers with an eye on the premium consumer market. The company produces several top-tier vaping products for cannabis consumers. In 2017, Pax introduced the Juul electronic cigarette brand, capturing a large part of the alternative nicotine market.
Investors include Fidelity, Poseidon Asset Management, Tiger Global Management, Tao Capital Partners and Sands Hill Angels.
Parallel – Total Funding: $355,740,491
Parallel is a vertically integrated, multi-state cannabis company with operations in Pennsylvania, Texas, Illinois, Florida and Nevada. The company operates approximately 50 locations nationwide, including 42 retail stores, cultivation and manufacturing sites.
Investors include Poseidon Asset Management and Patrón Spirits’ Edward Brown.
In February, the company announced intentions of going public through a merger with Ceres Acquisition Corp. (NEO: CERE.U) (OTCQX:CERAF), a SPAC in the cannabis space.
LeafLink – Total Funding: $339,000,000
LeafLink is a cannabis B2B platform founded in 2016 with the goal of streamlining the cannabis supply chain. The company offers a wholesale marketplace for cannabis retailers, brands, and distributors, as well as financial, data and advertising services.
Investors include Nosara Capital, Founders Fund, Thrive Capital, Lerer Hippeau, Phyto Partners and Snoop Dogg’s Casa Verde Capital.
Dutchie – Total Funding: $253,000,000
Dutchie is an Oregon-based cannabis delivery platform connecting dispensaries with consumers in the U.S. and Canada. The company provides dispensaries the technology needed to allow for “easy access to cannabis for everyone.”
Investors include Casa Verde Capital, Thrive Capital, Tiger Global Management, Gron Ventures, Thirty Five Ventures and Howard Schultz.
Privateer Holdings – Total Funding: $228,000,000
Privateer is a private equity firm investing in the cannabis space. Founded in 2010, the company holds a portfolio of investments in Leafly, Tilray and Marley Natural.
Investors include Subversive Capital and Founders Fund.
PharmaCann – Total Funding: $206,315,821
Founded in 2014, PharmaCann is a vertically integrated cannabis company with operations in six U.S. states including Illinois, Maryland, Massachusetts, New York, Ohio and Pennsylvania.
As well as cultivation, manufacturing and processing, the company operates the Verilife dispensary chain.
Investors include Cronos Group Inc. (NASDAQ:CRON).
Eaze – Total Funding: $202,500,000
Eaze is a San Francisco-based cannabis delivery company founded in 2014. Self-dubbed the “Uber of pot,” the company hosts a cannabis marketplace where consumers can order marijuana from dispensaries and have it delivered at home.
Investors include FJ Labs, Fresh VC, Slow Ventures and Casa Verde Capital.
Flow Cannabis Co. (Flow Kana) – Total Funding: $175,500,000
Flow Kana is a California cannabis product brand focused on providing sustainable, sungrown cannabis to consumers. The company partners with small farmers to provide a scalable platform that allows them to distribute their products statewide.
Investors include Gotham Green Partners, Poseidon Asset Management and Salveo Capital.
Holistic Industries – Total Funding: $156,095,000
Founded in 2011, Holistic Industries is a cannabis multi-state operator with operations in seven states and the District of Columbia. The company’s flagship retail and wholesale brand is Liberty Cannabis.
Investors include Harbert Growth Partners and Altmore Capital.
Mile High Labs – Total Funding: $100,000,000
Mile High Labs is a producer of cannabinoid ingredients and finished products offering CBD isolates, distillates and water solubles. The company also sells white label and branded products including topicals and edibles.
Investors include MGG Capital.
Sanity Group – Total Funding: $78,559,153
Sanity Group is a company set on “unlocking the health benefits of cannabinoids.” For this, the Berlin-based cannabis and digital health company created a mental health and chronic pain management platform, using digital technology to allow the tracking of cannabis-based therapy.
Investors include Navy Capital, Calyx Bio-Ventures, HV Capital and SevenVentures.
Syqe Medical – Total Funding: $70,000,000
Syqe Medical develops technologies that enable the precise delivery of a wide range of therapeutic molecules by inhalation, including cannabinoids. The Syqe Inhaler, the company’s flagship product, offers precision electronic dose control and inspiration automation, ensuring programmable consistent pharmacokinetics in the medical delivery of cannabis.
Investors include Shavit Capital and Philip Morris International Inc. (NYSE:PM).
Kadenwood – Total Funding: $67,000,000
Kadenwood is a Hemp-CBD company providing plant-based wellness solutions. The company operates a cannabinoid ingredient supply chain, offering farm-bill compliant CBD products to partners in California, Colorado, Minnesota, Maryland and West Virginia.
Investors include Arcadian Capital and The Craftory.
Fyllo – Total Funding: $58,000,000
Fyllo is a “compliance as a service” platform for the cannabis industry, offering a suite of software and services to navigate industry regulations. The company offers data, media, retail and regulatory solutions for cannabis businesses.
Investors include SOL Global Investments Corp (OTC:SOLCF), JW Asset Management, Arcadian Capital, Entourage Effect Capital and Phyto Partners.
Vertical Companies – Total Funding: $58,000,000
Vertical Companies is a California vertically-integrated cannabis company owning several brands, retailers and cultivation facilities throughout the Golden State.
Investors include Merida Capital Holdings.
Más contenido sobre cannabis en Español en El Planteo.
Photo: Damir Spanic on Unsplash
