Both The Olympian and Sacramento Bee ran articles recently on the flood of capital now moving to the cannabis sector, highlighting Poseidon’s part in choosing some of the most promising teams of entrepreneurs in the space.
The article begins by featuring one of the most disruptive cannabis tech companies in existence – MassRoots. This Denver-based social network allows cannabis enthusiasts to find smoking buddies, post plant and party pics, and share marijuana news – something that is frowned upon or downright outlawed on social networks.
“We connect cannabis businesses to their target consumers,” states Isaac Dietrich, founder and CEO of MassRoots. The article then states that the social network, with three-quarters of a million users and growing, is amassing advertisers and valuable market intelligence on customer preferences.
“Four years ago, the notion of sinking millions into pot cultivation and services seemed particularly daring,” the article states, and yet today, it is the bread and butter of several investment groups.
That said, the reality is that many cannabis companies have come and gone with little to nothing to show for it. As Poseidon co-founder Morgan Paxhia is quoted saying, “Ninety percent of companies are going to go to zero. They didn’t have business models. They had no products. They had press releases.”
This is a key reason why investing with a team that is on the ground, has experience in the industry, and has a good track record is crucial. Yes, there is money to be made, but only by making the right investment choices.
“Poseidon, an early investor in MassRoots, has helped capitalize 27 pot ventures,” the article goes on to state, “including marijuana laboratory testing, sales technologies and other services in 10 states. It has also invested in medical marijuana cultivation in Canada… So far, Poseidon had avoided direct ownership in any pot farms in California due to lack of state regulations. Yet Morgan Paxhia said the firm recently made strategic loans to two Northern California cultivation ventures. He said they were selected in anticipation of a future state-governed medical marijuana market and potential recreational legalization.”
“They are well-run operations, forward-thinking, that we think will transition through this gray world we’re in now,” he said.
Read the full article here.