By Lynda Kiernan
Leading legal cannabis sector investment and market research network Arcview Group announced it is expanding beyond insight to launch the Arcview Collective Fund, an early stage investment fund exclusively open to the 600-member Arcview Investor Network, who have already invested more than $270 million in over 200 sector-related companies.
This is the first fund to be led by Arcview Ventures’ CIO Jeanne Sullivan, and CEO Jeffrey Finkle. Founded in 2020 as an affiliated company of The Arcview Group, Arcview Ventures will be bringing several further cannabis funds to market over the coming years, according to a recent statement.
And it’s not a bad time to do so. Sixty two percent of Americans believe that marijuana should be legalized, according to Pew Research, double the percentage that believed so in 2000 (31 percent). Furthermore, over the past decade, the number of adults between 50 and 64 years of age using marijuana has doubled, while the number of adults over 65 has increased seven-fold over the same time period, according to a study conducted by New York University.
Already legal in 33 U.S. states, 10 of which allow for recreational use by adults, a shift in attitude toward marijuana continues apace. These 33 states are represented by 296, or 68 percent of Congress, meaning that there is potential for 2020 to be the year for the passage of meaningful legislation.
“Starting a member-based fund is a natural, logical step for us,” said Sullivan. “For years, Arcview has been introducing its members to viable investment opportunities in the cannabis space. In that time, members have asked for a way to combine their individual resources into something more substantial – a fund which enables them to be both diversified and dedicated to the cannabis sector.”
As the maiden fund, Collective Fund will target investments between $50,000 and $250,000 in early stage cannabis companies pursuing advances in cultivation, ag technology, biotechnology, media and analytics, pharmaceuticals, retail, infused products, extracts, and additional “ancillary products and services”, according to THC.net.
“This is the cannabis fund best positioned to source and evaluate early stage deals because every member is highly motivated to find the best. I’m so pleased that Arcview members have already responded so positively to this opportunity,” said Troy Dayton, founder and chief strategy officer, The Arcview Group.
Under The Collective Fund’s novel structure, each member will have a role in the decision-making process on the deployment of funds, creating a “hybrid” vehicle that brings together aspects of venture capital and angel network investing, Finkle told THCnet.
Each month members on a screening committee will review pitched investment opportunities, narrowing down the monthly field to four contenders for further due diligence. Two of these four will be chosen to be forwarded to the full network of investors who will vote to fund either one, or both, of the finalists. Throughout this whole process, members are also free to decide to personally commit capital to any opportunity at their own discretion.
So far, 43 members of the Arcview Group representing accredited investors, industry stakeholders, private equity partners, and angel investors have invested at least the minimum of $75,000 in the Collective Fund, which has invested capital in six companies to-date: NorCal Cannabis Company, Mood33, Garden Society, Fleur Marche, UbiQD, and Altopa.
Membership in The Collective Fund continues to climb, with expectations of reaching 100 members in the near future, and full subscription being achieved. Finkle also reported that Arcview can be expected to announce the launch of a more traditional, $30 million investment fund within the next few months.
– Lynda Kiernan is Editor with GAI Media and daily contributor to the GAI News and Agtech Intel platforms. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.