Connect with us

Technology

Tuatara Capital targeting $375 million for dedicated marijuana fund

Published

on

[ad_1]

Tuatara Capital, a New York City-based private equity fund founded by Wall Street veterans, is raising what could be the largest pools of capital dedicated to the booming marijuana industry.

The firm is trying to raise as much as $375 million for its second marijuana-focused fund. It’s already raised $161.2 million of that as of February 1, according to a filing with the Securities and Exchange Commission.

The firm declined to comment on the specifics of its fundraising activity.

Tuatara was co-founded in 2014 by a trio of Wall Street veterans. The partners include chief investment officer Al Foreman who’s a former private equity banker and executive at JPMorgan, chairman Mark Zittman, formerly of Guggenheim Partners’ capital markets division, and chief operating officer Marc Riiska, who has worked at a number of venture capital and software firms.

Read more: Biotech, CBD drinks, and a hot vape company: Here’s where all the top marijuana VCs are looking to write checks this year

Foreman said in an interview that the new fund will rely on the “five years of institutional knowledge we’ve built up operating in the space.” (Five years, in a brand new industry like cannabis, is a long time).

The firm’s second fund will be a lot larger than its first. Tuatara raised $93 million for its first fund, which closed in 2016, and has backed eight portfolio companies — soon to be nine, according to Foreman — including marijuana brands like Willie’s Reserve, as well as biotech startups like Teewinot Life Sciences, which is developing patents for the production of cannabinoids for pharmaceutical applications.

Foreman believes that the cannabis industry will segment broadly into four distinct markets as it matures: “social consumption,” or recreational use, cannabinoid pharmaceuticals, cannabinoid health and wellness, and industrial hemp.

“That’s the thesis we laid out in 2014, and I would say that our belief in that thesis has been reaffirmed,” said Foreman. The firm has also not shied away from “plant-touching” investments despite the US federal government’s prohibition on marijuana.

Bullish on beverages

As the industry evolves, Foreman said Tuatara’s second fund will look to make investments into the infrastructure and enterprise technology startups that support the sector.

The firm also has a “keen eye” on some select international markets, says Foreman, particularly as more countries in Europe and South America introduce legislation to legalize marijuana either medically or recreationally.

“There are attributes of certain markets that are appealing to us, which I probably wouldn’t share because it’s our secret sauce,” said Foreman.

Read more: The top 12 venture-capital firms making deals in the booming cannabis industry that’s set to skyrocket to $75 billion

Another area Foreman is bullish on: beverages formulated with marijuana, the idea being that new consumers will have an easier time drinking a THC or CBD-containing soda or beer, rather than smoking an old-school joint.

As for where Tuatara likely won’t be investing, Foreman says pure play marijuana cultivation is overheated and “set for a correction.”

“I think the viewpoint that all cultivation is valuable and all cultivation will be relevant going forward is somewhat myopic,” said Foreman. And he adds CBD, the trendy non-psychoactive compound in marijuana that’s shown up in products from beauty masks to cupcakes, into the “myopic” category.

Because marijuana is illegal under federal law (barring hemp-derived CBD), most of the capital in the sector comes from smaller dedicated funds rather than more traditional institutional private equity and venture capital funds.

While Tuatara’s new fund will make it one of the largest, there are plenty of firms that invest in both early and middle stage startups in the sector.

They include San Francisco-based Poseidon Asset Management, which is raising $75 million for its Fund II, New York City-based Altitude Investment Management, which manages approximately $30 million and is now raising for its second fund, along with 7thirty, Merida Capital, Rose Capital, Casa Verde Capital, Salveo Capital, Cresco Capital Partners, and others.

Sign up here for our weekly newsletter Wall Street Insider, a behind-the-scenes look at the stories dominating banking, business, and big deals.

[ad_2]

Source link

قالب وردپرس

Technology

More groups join in support of women in STEM program at Carleton

Published

on

By

OTTAWA — Major companies and government partners are lending their support to Carleton University’s newly established Women in Engineering and Information Technology Program.

The list of supporters includes Mississauga-based construction company EllisDon.

The latest to announce their support for the program also include BlackBerry QNX, CIRA (Canadian Internet Registration Authority), Ericsson, Nokia, Solace, Trend Micro, the Canadian Nuclear Safety Commission, CGI, Gastops, Leonardo DRS, Lockheed Martin Canada, Amdocs and Ross.

The program is officially set to launch this September.

It is being led by Carleton’s Faculty of Engineering and Design with the goal of establishing meaningful partnerships in support of women in STEM.  

The program will host events for women students to build relationships with industry and government partners, create mentorship opportunities, as well as establish a special fund to support allies at Carleton in meeting equity, diversity and inclusion goals.

Continue Reading

Technology

VR tech to revolutionize commercial driver training

Published

on

By

Serious Labs seems to have found a way from tragedy to triumph? The Edmonton-based firm designs and manufactures virtual reality simulators to standardize training programs for operators of heavy equipment such as aerial lifts, cranes, forklifts, and commercial trucks. These simulators enable operators to acquire and practice operational skills for the job safety and efficiency in a risk-free virtual environment so they can work more safely and efficiently.

The 2018 Humboldt bus catastrophe sent shock waves across the industry. The tragedy highlighted the need for standardized commercial driver training and testing. It also contributed to the acceleration of the federal government implementing a Mandatory Entry-Level Training (MELT) program for Class 1 & 2 drivers currently being adopted across Canada. MELT is a much more rigorous standard that promotes safety and in-depth practice for new drivers.

Enter Serious Labs. By proposing to harness the power of virtual reality (VR), Serious Labs has earned considerable funding to develop a VR commercial truck driving simulator.

The Government of Alberta has awarded $1 million, and Emissions Reduction Alberta (ERA) is contributing an additional $2 million for the simulator development. Commercial deployment is estimated to begin in 2024, with the simulator to be made available across Canada and the United States, and with the Alberta Motor Transport Association (AMTA) helping to provide simulator tests to certify that driver trainees have attained the appropriate standard. West Tech Report recently took the opportunity to chat with Serious Labs CEO, Jim Colvin, about the environmental and labour benefits of VR Driver Training, as well as the unique way that Colvin went from angel investor to CEO of the company.

Continue Reading

Technology

Next-Gen Tech Company Pops on New Cover Detection Test

Published

on

By

While the world comes out of the initial stages of the pandemic, COVID-19 will be continue to be a threat for some time to come. Companies, such as Zen Graphene, are working on ways to detect the virus and its variants and are on the forefronts of technology.

Nanotechnology firm ZEN Graphene Solutions Ltd. (TSX-Venture:ZEN) (OTCPK:ZENYF), is working to develop technology to help detect the COVID-19 virus and its variants. The firm signed an exclusive agreement with McMaster University to be the global commercializing partner for a newly developed aptamer-based, SARS-CoV-2 rapid detection technology.

This patent-pending technology uses clinical samples from patients and was funded by the Canadian Institutes of Health Research. The test is considered extremely accurate, scalable, saliva-based, affordable, and provides results in under 10 minutes.

Shares were trading up over 5% to $3.07 in early afternoon trade.

Continue Reading

Chat

Trending