Calvin Broadus, Jr. (aka Snoop Dogg) announced that he is working on creating an investment fund that will invest in cannabis startup companies. Most people know Snoop Dogg because of his rap career, but do not be fooled, this rap superstar is not new to the investment world.
Snoop Dogg invested in a few companies while they were still in their developmental stage. These companies are Reddit and Robinhood. Reddit is sometimes referred to as “the homepage of the internet” and Robinhood is a $0 commission trading platform for investing.
The investment fund that Snoop is working on will be a $25 million fund. The fund will focus on investing in technology related companies in the marijuana industry. Even though Snoop is known for being a marijuana user, he does not plan on investing in marijuana cultivation and production companies.
The cannabis industry has seen rapid growth from an investment standpoint during 2015 and it is only February. The demand for investment in marijuana has increased exponentially over the last few years and this just the beginning. CrunchBase recorded 29 venture investments in cannabis companies last year which amounted to $90 million. This figure excludes the $75 million raised by Privateer Holdings in mid-December.
Snoop Dogg is considered to be a weed connoisseur and he is following Peter Lynch’s advice by “investing in what you know.” Technicl420 will keep you updated on how Snoop’s fund is doing, specifically relating to how much the fund has raised and how they plan on allocating the funds. Snoop’s investment bring more than just capital to the industry. Snoop is a well-known celebrity that is well connected in Hollywood. Technical420 expects to see his notoriety and connections generate investment interest among other celebrities.