Snoop Dogg’s investment fund, Casa Verde Capital, has closed on $100 million for its second investment fund, reports TechCrunch.
Following a decline in the cannabis industry last year, the market has bounced back, making way for funds like Dogg’s (born Calvin Broadus) to expand and help scale cannabis-related businesses.
“Sitting here today, four-plus months into COVID, cannabis has really proved itself to be a non-cyclical industry. Cannabis has been deemed an essential business everywhere across the U.S. We had record sales in March, April and May, and the trend has continued,” Casa Verde Capital managing director, Karan Wadhera told TechCrunch in July. “And now that we are getting into an environment where governments are going to be looking for additional sources of tax revenue, the potential urgency around cannabis legalization is going to be there, which is going to be massively positive for the industry.”
Casa Verde’s portfolio is now worth at least $200 million, and its latest investment is Proper, a sleep company that offers sleep coaching and rest-inducing supplements. In addition, the fund has invested in cannabis opportunities spanning delivery, supply chain logistics, brands, and retail.
Wadhera is hopeful that the Biden administration will be helpful to the cannabis industry as well.
“He has laid out many of the things that he wants, and [while] he isn’t taking it as far as full-scale legalization, he’s certainly in favor of full-scale decriminalization, [meaning] letting states have full authority over what happens with their businesses, and also the rescheduling of cannabis down from the current Schedule 1 level,” Wadhera said. “So all of that will be incredibly helpful and will bring a lot more players who will feel comfortable investing in the space and, potentially, acquiring some of these businesses, too.”
