Privateer Holdings, a cannabis-focused private equity firm in Seattle, announced Friday it has closed on $40 million in convertible bridge financing, bringing its fundraising total to $122 million.
The news marks the first time a cannabis-related investment company has raised more than $100 million, Privateer said in a press release. The funding increase reflects growing investor interest in cannabis-related businesses.
Privateer said it will use the money to launch new ventures, make strategic acquisitions and expand its three existing portfolio companies into new markets.
Privateer’s previous funding rounds include a $7 million Series A raise in July 2013 and a $75 million Series B round in March 2015 that included a multimillion-dollar investment from Founders Fund, a venture capital firm.
In August, New York-based Tuatara Capital‘s announced it had raised $93 million to invest in marijuana business. Tuatara’s portfolio includes Willie’s Reserve, the cannabis brand backed country music legend Willie Nelson.
With the rise of adult use cannabis, experts see medical marijuana dominated by two distinct markets.