Pornhub Founder Invests in German Medical Marijuana Startup
Fabian Thylmann, known as the “Porn King” and founder of several adult websites, has invested in the German startup Cannamedical, which was founded in 2017. Thylmann initially invested a six-figure sum in the Cologne-based company, according to CEO David Henn.
In November 2016, just two months before the German Bundestag decided to legalize medical marijuana, Henn founded Cannamedical. Today, Cannamedical has 20 employees and plans to fill 10 more positions in 2018.
Thylmann made his first millions with websites like YouPorn and Pornhub, and founded the Manwin group (now MindGeek), which he sold in 2013. Shortly before selling Manwin, Thylmann faced tax violation charges in Germany, which were resolved in December 2016 after he paid several million euros.
“The medical marijuana business faces similar funding challenges. It’s a highly profitable industry, but today, few banks and funds want to be associated with it. My old network puts me in a unique position to help companies in this field move further than others, and I’m not afraid to invest in businesses I believe are beneficial to humanity, as long as they are legal. Cannamedical is one of the few companies licensed to distribute marijuana in Germany. They are uniquely positioned in a very strong market and are well set up for unprecedented growth. Who is better positioned than a German company with German principles and precision?” said Thylmann.
Cannamedical Expects Tenfold Sales Growth in 2018
Within a few months, Cannamedical was able to import marijuana into Germany for medical purposes. Last year, the youngest of the four marijuana import companies managed to sell 300 kilograms of marijuana to German pharmacies, totaling 2.2 million euros ($2.4 million USD).
Currently, Cannamedical imports all its products from the Netherlands, but this is expected to change soon. In the near future, a licensed Canadian producer is expected to help meet the company’s projected demand of 250 kilograms of marijuana per month, providing Cannamedical with the supply needed to increase sales tenfold.
Henn has received significant interest in cooperation from potential producers abroad, and, interestingly, a large number of inquiries have come from the small country of Lesotho. However, Henn believes that meeting high European production standards would be difficult, if not impossible, in the kingdom surrounded by South Africa.
After Cannamedical received numerous rejections from potential investors in early 2017, the well-known founder of YouPorn and the operator of Playboy TV offered to finance the young company. “Thylmann is a strong, independent partner who invests his own assets without relying on approval from financial authorities. By the time the media began regularly reporting on the law passed in March, potential investors were still scared off by the word ‘marijuana.’ We were among the classic three categories of exclusion: alcohol, drugs, and sex,” said Henn. “That’s why we were lucky to find investors even before the legality of medical marijuana was established.”
Now that the company’s future is set, investors have started lining up. “As the potential of marijuana became more popular thanks to numerous media reports, many potential investors showed interest—just nine months later,” Henn added.