Privateer Holdings
Privateer Holdings is a private equity firm that strategically invests in the legal medical cannabis field. Privateer Holdings is headquartered in Seattle, Washington and is the first firm in the United States to focus entirely on cannabis-related companies. The firm's first investment round, currently underway, will close at $7 million.
Background
Brendan Kennedy, Michael Blue, and Christian Groh founded Privateer Holdings in 2011. During its first investment round, the firm is developing a pool of $7 million for use in acquiring or starting businesses in the cannabis industry.
Privateer Holdings currently invests only in companies that are ancillary to the direct production or selling of cannabis. Companies in this segment of the industry might include media companies, software companies, and financial services such as insurance.
In 2012 Privateer Holdings acquired Leafly.com, a website that provides reviews of cannabis strains and dispensaries.
In November 2014, Privateer Holdings and Bob Marley's daughter Cedella launched the cannabis brand Marley Natural developed by the Marley family in conjunction with Privateer.
Market
Privateer Holdings' primary market is the medical cannabis area. In Washington, it is estimated that over 360,000 people will shop at state-licensed cannabis dispensaries in 2013, and a 2011 study by See Change Strategy predicted that there would be an $8.9 billion medical-cannabis industry by 2016. Some estimates of the industry's current size range from $14-40 billion, and Privateer Holdings projects that the industry will grow to $50-$75 billion within five years.
Leadership
Brendan Kennedy
Brendan Kennedy is a graduate of the Yale School of Management and received a Master of Engineering from the University of Washington and a Bachelor of Arts from the University of California, Berkeley. Before founding Privateer Holdings, he worked as chief operating officer for SVB Analytics and was the chief executive officer and founder of Mindability, Inc. He is currently the CEO of Leafly.
Michael Blue
Michael Blue is the chief financial officer of Leafly and one of three founders at Privateer Holdings. Blue is a graduate of the Yale School of Management and holds a bachelor of business administration from Harding University. In addition to his current positions, he has served in executive-level roles at various investment banking and private equity firms.
Christian Groh
Christian Groh is Partner of Privateer Holdings and one of the three founders for the firm. He also serves as Director of Sales of Leafly. Groh holds an MBA from San Francisco State University and a Bachelor of Science from California Maritime Academy. Prior to Privateer Holdings, he worked as head of sales for SVB Analytics.
