New York-based Altitude Investment Management, LLC, announced a major funding milestone today raising $18.7 million in capital from more than 50 investors for its fund Altitude Investment Partners, which invests in a range of early-stage to growth companies in the emerging legal cannabis industry. This is a major step toward the $50 million target the firm has set for the next 11 months.
Principals at Altitude have invested more than $4 billion in the alternative investment space, and have been investing in legal cannabis for the last two years. Led by John Brecker, Jon Trauben, Michael Goldberg, and Roderick Stephan, Altitude has already proven to be a major player in the cannabis industry.
“According to research published by Ameri Research Inc., the global legal cannabis market was valued at $14.3 billion in 2016. The market is forecast to grow at a CAGR of 21.1% between 2017 and 2024 while reaching a value of $63.5 billion in global sales in 2024,” said John Brecker. “There is a huge existing customer base for medical and adult usage, yet decades of federal prohibition have kept dominant companies and institutional capital from owning this industry. This lack of institutional capital being invested in the cannabis industry creates a tremendous opportunity for our investors. Additionally, the operators of successful companies are now migrating toward working within the cannabis industry creating an unparalleled opportunity for investors.”
The fund’s current investment portfolio includes 11 cannabis companies including BDS Analytics, Eyechronic, Flowhub, Front Range Bioscience, Green Flower Media, Privateer, The Green Organic Dutchman, Würk, and Canndescent, which recently closed a $10M series B offering. The $18.7 million announced today will be used to continue to invest in the global cannabis industry.
“We are delighted to announce this initial capital raise as we continue to invest in this exciting and opportunistic industry,” said Jon Trauben. “Over the past two years, the partners of Altitude have invested in a diverse set of companies that span the breadth of the cannabis industry. We have a unique portfolio strategy that focuses on companies with strong management teams and scalable systems that meet the highest regulatory and compliance standards that will be foundational to the industry. These companies are building recognized and leading products, brands and services that have strong customer loyalty, sticky customer relationships, niche industry expertise, and tailored solutions for a highly regulated industry.”