This Billionaire Is Betting Big On Marijuana And Here’s Why

The big investors are starting to get interested in marijuana’s profit potential, too. Stepping up to the plate The marijuana industry remains mostly in the shadows; however, the passage of medical marijuana legislation in 23 states and of recreational marijuana laws in four states is starting to attract the attention of private equity investors, an important step in the evolution of the marijuana industry from emerging to developed.

Last week, Privateer Holdings, a marijuana-focused firm that owns three different marijuana-based businesses, reported that the Founders Fund, a venture capital firm backed by Peter Thiel, the billionaire co-founder of PayPal, is investing millions in it. The investment by the Founders Fund, which invests the assets of some of Silicon Valley’s best-known entrepreneurs, is a resounding endorsement of the potential profit opportunity that “cannabusiness” offers.

That’s because private equity firms like Founders Fund don’t approach investments without doing substantial research and due diligence — not only on businesses, but on management, too. In the case of Founders Fund’s investment in Privateer Holdings, Founders spent more than a year digging into the pros and cons of investing in the marijuana industry.

To read more, visit http://www.nasdaq.com/article/why-this-billionaire-is-betting-big-on-marijuana-cm433799

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