The Full Ratchet (TFR): Venture Capital and Startup Investing Demystified

Emily Paxhia of Poseidon Asset Management joins Nick to discuss The $61B Cannabis Market, Overcoming Compliance and Regulation, and the Declining Social Stigma Around Cannabis. In this episode we cover:

  • Can you give us an overview of the Cannabis Space -- size, growth, major sub-segments?
  • Which segments are you most interested in?
  • What areas do you not invest in and why?
  • Raising a cannabis fund in 2013... I have to imagine you had to find a certain type of LP for that pitch to land. How hard was that?
  • Regulation can be a break or a gas pedal --how have you or do you assess and underwrite the regulatory and legal risks in the space?
  • To what extent are Cannabis businesses shut out of the existing financial system? 
  • Are there any other major differences in sourcing or diligence for a cannabis focused fund vs. your standard VC fund?
  • How many cannabis focused funds are there and is follow-on financing risk significant when you're dealing with a smaller pool of capital providers?
  • In 2018 we saw this massive boom and bust cycle for cannabis and hemp companies. How cyclical is the industry and, aside from consumer consumption behaviors, what macro drivers do you watch closely?
  • There's recently been news that Molson-Coors has launched a CBD-infused drink and several major health and wellness retailers will offer CBD topicals. 5 years from now will all of the major household CPGs have CBD and Cannabis products available?

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The host of The Full Ratchet is Nick Moran, General Partner of New Stack Ventures, a venture capital firm committed to investing in the exceptions.

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Direct download: Emily_Paxhia_Final.mp3
Category:general -- posted at: 6:00am EDT