Snoop Dogg’s Cannabis Investment Fund Raises $40 Million
For many cannabis enthusiasts, no modern musician is as closely associated with cannabis culture as the famous rapper Snoop Dogg. With the legalization of cannabis in California and other West Coast states, Snoop officially launched his own investment fund to support cannabis-related businesses. To date, the fund has already raised over $40 million.
Calvin Broadus Jr., better known as Snoop Dogg, is one of the most recognizable and wealthy rap artists of the past 30 years. It’s not hard to imagine that his new career in the cannabis business could bring him even greater profits and fame. Snoop is one of the first American celebrities to seriously enter the cannabis industry after its legalization in several U.S. regions. His investment fund, Casa Verde Capital, was founded in early 2015 to finance companies and projects that provide technical services to businesses involved in the production and sale of cannabis.
Currently, the fund continues to invest in cannabis-related projects in the media and information technology sectors, as well as in companies focused on cannabis analysis and the development of extraction technologies for its active components. Although Snoop’s fund has been on the market for three years, the flow of investors willing to collaborate with it is only growing. Last week, fund representatives announced to the press that they had reached their first fundraising milestone, successfully accumulating about $45 million from private investors.
Business Growth
In a recent interview with TechCrunch, Karan Wadhera, the manager responsible for overseeing the fund and its assets, stated that most of the money was raised from individual investors and small partnerships, rather than large international corporations. Wadhera also told reporters that the fund initially grew slowly, but as cannabis reforms succeeded and Snoop Dogg’s name attracted attention, more potential investors became interested. As a result, the fund accumulated a significant sum over the previous fiscal year, which, according to its manager, is just the beginning of the organization’s expansion.
“The initial investment package in private companies is typically a deal worth at least a million dollars. At least half of the fund is reserved for long-term financing of successful startups, which can also request an additional $3–5 million to support their development,” Wadhera explained. “I should note that we continue to work exclusively with companies operating in related sectors of the industry—that is, organizations that do not directly produce or sell cannabis. The funds are directed specifically to promising young companies offering innovative technological solutions to help businesses involved in cultivation.”
Casa Verde has already invested in successful young companies such as Eaze, Greenbits, Leaflink, and Merry Jane, in addition to working with hundreds of other firms that serve the everyday needs of the cannabis industry. According to Wadhera, Snoop Dogg himself is more of a symbol and brand ambassador for Casa Verde than a company director, but he does occasionally participate in selecting projects for investment.
“Many companies hope to attract Snoop’s attention to their projects, as clients see him as a guarantee of our quality. Sometimes Snoop personally selects organizations he likes for funding,” Wadhera said. “Although he generally avoids direct negotiations, some companies, like the media firm Merry Jane, have managed to catch his interest. He agreed to produce content for their cannabis-themed channel because the topic genuinely interests him.”
Future Development
Snoop Dogg began actively discussing cannabis legalization and recreational use long before even medical reforms were underway. Now, he is interested in the affairs of the legal recreational cannabis market. He has stated that the fund’s investments should primarily aim to break the “drug” stigma that has surrounded cannabis due to years of criminalization and propaganda.
Given Casa Verde’s successful work with Merry Jane and other media companies, it’s easy to imagine the firm will soon achieve its goals. On the other hand, the fund is also investing in other technical segments of the related market. Since last November, the fund has formally sponsored companies that analyze the quality of commercial, legal cannabis, such as Canalysis, which received a $1 million investment package.
In any case, as Mr. Wadhera notes, raising $45 million is likely just the beginning of a long and successful journey for Casa Verde.