Marijuana venture fund Phyto Partners closes $14 million raise

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Phyto Partners, a cannabis-focused venture capital fund, has closed its second fund – raising $14 million from a group of limited partners.

Based in Boca Raton, Florida, Phyto has already begun investing capital from the fund into two of its 12 portfolio companies:

  • Marijuana Doctor, a physician network in Florida. Phyto Partners is the lead investor in Marijuana Doctor and will hold a seat on the board of directors.
  • Flowhub, a tech firm with seed-to-sale and compliance applications.

Investment in the Phyto II fund included follow-on participation from limited partners in the venture’s first fund, which launched in 2015, the company said in a news release.

Larry Schnurmacher, Phyto’s founder and managing partner, said interest in cannabis investment opportunities continues to grow.

He said the firm is “speaking to individuals and family offices that want to invest in the cannabis industry but are still unsure of the laws” and worry about the potential risks.