New York-based marijuana news publication High Times is set to launch a private equity fund for marijuana businesses in Colorado, United States, the Denver Post has reported.
The HT Growth Fund wants to raise $100m of investment money for marijuana related businesses over the next two years. Its investments are expected to range between $2m and $5m per company, and the fund will focus on ancillary services rather than plant cultivation.
“What we are looking to do is provide capital and credit to companies that are established and have grown and reached their potential as much as they can without access to traditional capital markets,” said Michael Safir, managing director of the new fund and also the former business manager of High Times.
The recent legalisation of recreational cannabis in Colorado has attracted other investors because of the industry’s growth potential. ArcView Investor Network, which brings together investors and entrepreneurs, had already announced last year that it has set aside $1m for marijuana-related companies in Colorado.
ArcView estimates that the industry could be worth as much as $10.2bn within the next five years if other states begin to legalise the drug.