Another mainstream investment firm is hoping to cash in on the cannabis industry.
Tao Capital Partners, which pumped money into Tesla cars and space travel company SpaceX, announced it has made an investment in cannabis software company MJ Freeway.
Financial terms of the deal – including the amount of the investment – weren’t disclosed.
Joby Pritzker, the managing director of investments for Tao Capital and a member of the family that started the Hyatt Hotel chain, said in a press release that the investment helps legitimize the cannabis industry. Pritzker is also chairman of the Marijuana Policy Project and a member of the cannabis investment network The ArcView Group.
MJ Freeway co-founder and CEO Amy Poinsett said the investment will help the company, which offers inventory management software, develop products and expand into new markets.
The investment comes after Founders Fund – started by PayPal co-founder Peter Thiel – invested in a round of fundraising by Privateer Holdings Inc., a marijuana-focused private equity firm.