
Peter Thiel becomes marijuana's first big investor - forloop
http://www.theguardian.com/business/2015/jan/08/cannabis-investor-peter-theil-paypal-founder
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chollida1
> So it’s hardly surprising that Thiel’s Founders Fund has become the first
> institutional investor to make an investment in the nascent cannabis
> industry – a business that isn't even legal in half of the states in the
> country.

That is some awful fact checking. Last year there were 4 funds that I know of
that invested in marijuana companies. I'm sure the actual number is an order
of magnitude larger.

I guess this head line gets readers though:)

There are already marijuana companies that list, MJNA US Equity, TWD CN Equity
and SUN CN Equity are three that come to mind. All of which have institutional
investors.

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RyJones
I think this is a lightly edited press release.

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jsprogrammer
Should't press releases, if anything, be factual?

~~~
foobarqux
Press releases are public-relations/marketing/propaganda, the opposite of
factual.

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jsprogrammer
I think you are describing the difference between 'should' and 'are'.

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zmanian
I suspect that the national market for legal cannabis is likely maybe ~$25
billion.

Cannabis is inexpensive to produce. Easy to stores and ship. The price will be
driven more by taxation than production costs.

It just seems like too small a market for venture capital.

~~~
coffeemug
Many technology companies naturally tend toward monopolies (which is one of
Peter Thiel's investment theses). If the same is true for cannabis, and you
can get a monopoly in a ~$25B market, you've got yourself one of the most
valuable companies in the world.

~~~
zmanian
There are maybe opportunities to build a monopoly in the retail space but
barriers to entry seem low in most situations.

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pmalynin
Wasn't he the one who said Twitter execs smoke too much weed?

~~~
cmyr
Until recently(?) if you were using the twitter API and were over your rate
limit the server responded with "error 420: Enhance Your Calm".

~~~
joshstrange
It's still listed on their API docs:
[https://dev.twitter.com/overview/api/response-
codes](https://dev.twitter.com/overview/api/response-codes)

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lotsofmangos
_" If there is one figure closely identified with cannabis, it’s probably the
late reggae legend Bob Marley – and late last year, Privateer signed a 30-year
agreement to use his name on what is likely to be the world’s first global
marijuana brand, Marley Natural."_

Bob evidently keeps his promises even beyond the grave.
[https://www.youtube.com/watch?v=zErP5QoMA3w](https://www.youtube.com/watch?v=zErP5QoMA3w)

~~~
oscargrouch
next: A Che Guevara brand for guns targeting the guerrila "market".

Capitalistic and for-profit guided society is rot to the core

~~~
lotsofmangos
I would not be at all surprised if a gunsmith somewhere in the USA was
currently making replica Cristóbal Carbines for that very market.

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astletron
Is there an avenue for a Joe Schmo investor like me to get some exposure to
the marijuana market? I'd definitely put some dollars behind the future of
that commodity.

~~~
arfliw
There are public companies in the industry. All are highly risky/volatile
stocks, though. Nothing like a blue chip company yet, which you could trust to
steadily rise in tandem with the industry.

~~~
rmetzler
I think there are only few labs specialized in testing THC and CBD levels yet.
While it isn't very hard to grow or create other products, I don't think it's
easy to compete with a service like this.

~~~
eli
Wouldn't a huge industrial testing company eventually decide the market is big
and safe enough to enter and just crush the small players on scale?

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vivc15
Disclaimer: I work at MandJclub.com

Branding is probably the key factor in whether this industry is able to
generate wide-spread user adoption. It is interesting that Privateer decided
to choose the Marley brand to associate with. However, that still targets a
specific demographic that is currently exposed to cannabis, but it won't help
draw new users into the segment as recreational marijuana becomes legalized
nationwide.

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e40
_which is still illegal in half the US_

I was unaware that it's legal in half the US. That has to be hyperbole, right?

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ddingus
If you are discussing medical use, half is about right.

Recreation is only legal right now in CO and WA, with OR to follow mid year,
when it's law goes into effect. June, I believe.

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santaclaus
Isn't Alaska on the list of soon-to-be legal recreational states?

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bigtunacan
Pretty sure it's already legal in Alaska.

[http://ballotpedia.org/Alaska_Marijuana_Legalization,_Ballot...](http://ballotpedia.org/Alaska_Marijuana_Legalization,_Ballot_Measure_2_%282014%29)

~~~
jpatokal
Possession and personal use, yes, but the channels for commercial production
and sale have not been worked out yet.

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andreyf
> "Every time the tide recedes, we are able to take a step forward" in
> building Privateer’s existing businesses and in seeking out new investments,
> Kennedy said.

I'm not certain the "tide" metaphor is the best choice here...

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kazinator
Yes; you need something that permanently recedes. Hairline? :)

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guiomie
It never occured to me that cannabis would be a next booming industry. I've
noticed there are a few traded companies already: CVE:BED, CVE:TWD ...

Anyone know other investment (tradable) vehicules out there ?

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nilkn
I'm sure several billionaires and countless millionaires will come out of the
upcoming cannabis boom over the next decade (or two, or three). The real
question of interest on HN is how much software will play a role in this.

~~~
sethd
That's a good question. What would be the analogue industries/commodities to
compare to? Tea, Coffee, Tobacco? What role does software play in those other
than ecommerce and agriculture on a large scale? Of course cannibis is mostly
grown in small scale operations right now but that could change with legal
industrial hemp.

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sago
> They have a strong first-mover advantage,” – that’s Silicon Valley speak for
> planting your flag first

Glad that we have articles like this to explain that obscure Silicon Valley
jargon to us.

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louprado
Am I am the only one who is saddened by this headline ? This seriously messed
with my day.

~~~
D_Alex
You are not alone...

I fear that, unfortunately, a liberal approach to drugs will not end well at
all. And I have thought a lot about this and heard all the arguments in
favour. And yes, I know about how alcohol is legal and much worse than mj.

But suppose there was a drug even "better" than mj, legal, cheap, very
available and had no side effects whatsoever. Suppose it was not addictive,
just THE most pleasant thing you could do in your spare time. How would the
society be affected by replacement of a complex system of drives and desires
with one simple desire, to get high on this new drug whenever possible?

I fear we'd be facign the ultimate Tragedy of the Commons.

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JabavuAdams
This is not a good argument.

Novelty-seeking is a great pleasure for much of the population. Something
can't be both non-addictive and also the most pleasant thing to do all the
time.

We would have to breed out or genetically engineer out the possibility of
boredom, which we're not going to do. Or if we do, then that's the source of
the problem, not the drugs.

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JabavuAdams
I have this mental image of a baked Peter Thiel and Elon Musk stumbling out of
a crashed space-ship, on Mars.

"Duuuuuude. Whoa!" "Seriously!"

It makes me happy.

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jacquesm
That's a "Ted and Bill's excellent adventure" reference right?

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JabavuAdams
Not specifically, but it could be.

