Rapper Snoop Dogg is known for being a marijuana enthusiast and the cannabis connoisseur has something to celebrate this holiday season.
Snoop Dogg’s Casa Verde Capital has closed on $100 million for its second investment fund, according to documents filed with the SEC.
The investment fund was co-founded by Snoop Dogg and its managing director is Karan Wadhera.
“What happened to the public perception of the cannabis industry is not too dissimilar to the dotcom bubble of the late ’90s, where there was a lot of hype — a lot of it driven by public companies — and a lot of speculative trading and valuations that weren’t really founded in reality. [We’re talking about] projections multiple years out into the future, and then crazy revenue multiples on top of that,” Wadhera said to TechCrunch in July.
“Things just got really frothy, and that eventually burst, and last April or May was sort of the apex of that moment. It’s when things started to trade off. And it’s been those names, the public names in particular, that have been hit particularly hard.”
“Sitting here today, four-plus months into COVID, cannabis has really proved itself to be a non-cyclical industry. Cannabis has been deemed an essential business everywhere across the U.S. We had record sales in March, April and May, and the trend has continued,” Wadhera remarked.
“And now that we are getting into an environment where governments are going to be looking for additional sources of tax revenue, the potential urgency around cannabis legalization is going to be there, which is going to be massively positive for the industry.”
Casa Verde has now more than doubled the size of its initial investment vehicle. The fund has managed to build a portfolio that is now worth at least $200 million, according to people with knowledge of the firm.