Venture Capital Firm High on Its Legal Marijuana Investment

Pot
(Image: dea.gov)

One of America's few growth industries is the legit pot business. As more states legalize marijuana sales and use, most would assume there's money to be made. While you don't need to be a financial wizard to understand the opportunity, the smarter money realizes that a strategic business approach requires deep pockets.

One such example of "smart money" is PayPal founder and early Facebook investor Peter Thiel. According to a story in today's Los Angeles Times, Founders Fund, an enterprise partly run by Thiel, is "making a multimillion-dollar investment in a cannabis-focused private equity firm called Privateer Holdings."

How does the "smart money" appraise Privateer Holding's business prospects? "(W)e believe it will be a massive industry within the next decade," observed Founders Fund partner Geoff Lewis. Clearly, they're not envisioning that their investment will go up in smoke.