Poseidon Asset Management Archives - Green Market Report

Debra BorchardtDebra BorchardtOctober 15, 2019
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7min27560

Cannabis tech company Flowhub has raised an oversubscribed $23 million Series A financing round led by e.ventures, Evolv Ventures — the venture fund backed by Kraft Heinz —  and Poseidon, with contributions from investors 9Yards Capital, former NBA commissioner David Stern and Iqram Magdon-Ismail, the co-founder and former CEO of Venmo, among others.

Evolv Ventures’ goal is to invest in new tech companies innovating within the food industry. The firm was created to help Kraft Heinz stay on top of the food industry’s changing trends. However, it isn’t limited to food investing and also looks at new consumer models and consumer insights.

The Flowhub platform is used by dispensaries making it easier for them to run their operations. Some of the features include the Stash app, a mobile inventory management solution, the Cashier app for enhanced front-of-house point-of-sale capabilities with iPad/tablet compatibility, and Order Ahead with integration partner Dutchie for a streamlined in-store pickup process. Flowhub said it also added new technology integrations with LeafBuyer and Leafly as part of its commitment to creating a robust partner ecosystem that enables customers to build their own custom cannabis tool stack.

“What we are experiencing right now is an end to cannabis prohibition and Flowhub is on the front lines of this movement,” said Kyle Sherman, founder and CEO, Flowhub. “Every legal transaction completed with the Flowhub retail platform is a positive step forward, and we are committed to helping our customers build thriving cannabis businesses. With this investment, we will continue to automate the cannabis supply chain, retail and reporting processes and bring to market technology solutions that are not only shaping the cannabis retail business, but also driving forward the future of legalization and de-stigmatization.”

“We are excited to join Flowhub at such a crucial time in the company’s overall growth journey,” said Jett Fein, partner, e.ventures. “As the demand for legal cannabis products rises across the U.S., Flowhub is focused on using technology to advance the future of the cannabis industry and has built a cloud platform with a suite of applications that enables dispensaries to provide superior and tailored consumer retail experiences in this highly regulated industry.” According to Tech Crunch, the firm e.ventures  is a 20-year-old, early-stage venture outfit that has raised $400 million in fresh capital across two new funds: a $225 million U.S.-focused fund that’s based in San Francisco, and a $175 million fund that’s focused on Europe and based in Berlin.

Flowhub has experienced tremendous growth over the last year, increasing revenue by 200 percent and doubling its customer base across 11 markets, which includes household brands like Cookies, Dr. Greenthumb’s, Green Dragon, Nectar and Starbuds. The company also added strategic roles to its executive team — including SaaS enterprise tech leader Dave Smith as CRO — grew its female leadership across key strategic business roles such as marketing, product management and finance and has already increased headcount by 50 percent in 2019. Flowhub also recently announced its new headquarters at the former Slack HQ near downtown Denver’s Union Station and three satellite offices to support continued expansion efforts.

“Cannabis is not an industry that you just jump right into,” said Emily Paxhia, managing director, Poseidon. “The compliance and regulation aspects make this a unique industry and Flowhub is one of the leading cannabis tech companies that is taking a meticulous and strategic approach. We saw the potential for Flowhub’s technology and mission early on and we’re thrilled to continue to support them in delivering the cannabis retail experience of the future.”

The $23 million of financing closed on this round brings the company’s total funding to $27 million. This marks the first cannabis tech investment from round leaders Evolv Ventures and e.ventures and is indicative of the increased appetite to bet big on a maturing market segment with an industry leader like Flowhub. With this injection of capital, the company will continue to invest in product innovation, hire top technical talent and expand its partner ecosystem with future technology integrations and collaborations through an open API approach.


StaffStaffJune 24, 2019
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5min10980

Morgan Paxhia is a co-founder and Managing Partner of Poseidon, one of the longest running funds in the cannabis industry.

With over ten years experience in investing and finance, Morgan has developed a deep understanding of individual company analysis, portfolio construction, and risk mitigation. Since 2012, he has dedicated his investment focus primarily to the cannabis industry. Given the limited amount of information in this emerging vertical, the lack of institutional research, and relative industry immaturity, Morgan embraces an active approach of working closely with companies. He utilizes a “boots on the ground” methodology to better understand individual companies and the industry. Through his extensive travel across the US and Canada, reviewing hundreds of business plans and overseeing several existing cannabis investments, Morgan has developed Poseidon’s investment methodology tailored specific to the business of cannabis. Poseidon’s proprietary process is driven by the time spent in the industry and the considerable data collected over the last several years. He has created frameworks for analysis depending on sub-sector, company stage, and participation across the capital spectrum through our database of contacts, valuations, metrics, and other relevant factors.

Morgan started his investment career at UBS Financial Services working in a Wealth Management/ Investment Banking hybrid training program. The training brought a wide range of first hand experience working through several facets of the organization, including advisory teams managing assets for high net worth individuals and municipal bonds trading. Following UBS, Morgan transitioned to a Providence-based Registered Investment Advisor as an Investment Consultant. During that time, he worked under the partners of the firm doing fundamental portfolio management.

Morgan graduated from the University of Rhode Island with a B.S. in Applied Mathematics in 2005.

GMR Executive Spotlight Q&A –

Full birth name: Morgan C. Paxhia

Title: Co-Founder & Managing Partner

Company: Poseidon Investment Management

Years at current company: 6

Education profile: University of Rhode Island, BS in Applied Mathematics

Most successful professional accomplishment before cannabis: My professional accomplishment before Poseidon would go back to my entrance into the professional world of finance. I landed a job at UBS in one of their hybrid training programs. This program fast tracked my exposure to the world of finance as we worked through various parts of a large financial institution. My experience was especially memorable as I was on the municipal bond trading desk during the Fall of 2008, the very chaotic period of The Financial Crisis.

Company Mission: Poseidon dedicated its investment focus to the emerging cannabis industry with the launch of our first fund in January 2014. Investing in cannabis requires full time focus, and very active engagement. We are generally growth stage venture investors seeking legitimate companies that provide meaningful value in a highly fragmented, dynamic market.

Company’s most successful achievement: Our investors are our greatest achievement. We are industry leading investors because of their trust and support.

As a result, we have had the opportunity to build the longest running investment track record in cannabis, work with many great companies, and generate very strong returns.

Has the company raised any capital (yes or no):  Yes

If so, how much?: Our firm currently has over $140 million in assets under management between our investment strategies.

Any plans on raising capital in the future? Poseidon focuses on making great investments on behalf of our fantastic investors. We will continue to raise and deploy capital in the cannabis industry as long as we continue to have great investment opportunities.

Most important company 5 year goal: Poseidon will be over ten years old and cemented its place in history as a significant contributor to the global cannabis industry.


William SumnerWilliam SumnerSeptember 21, 2018
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5min16100

What kind of effect does adult use cannabis have on the medical market? The answer may surprise you. At the Green Market Summit, where some of the cannabis industry’s most prominent thought leaders were gathered, a discussion panel was held on the unforeseen consequences of legalizing adult use cannabis on the medical market. The following report “The Economics of Adult Use Marijuana on Medical Marijuana” was issued as a result of the panel members.

Moderated by Marijuana Policy Group co-founder Adam Orens, the discussion included Emily Paxhia, Founding Partner & Managing Director at Poseidon Asset Management; Jeannette Ward Horton, Vice President of Global Marketing and Communications at MJ Freeway; and Jessica Billingsley, CEO and Co-Founder of MJ Freeway.

Distinguishing this panel from all the other was the fact that it was the only all-female panel at the event. Although the panelists mused that someday such a panel would neither be significant or out of the ordinary, the audience reacted to the observation of the all-female panel with approval and applause.

Starting off the conversation, the panelists discussed the pre-adult use medical market and many of the early predictions of what would happen when adult use cannabis sales became legal. Although some predicted that the medical market would remain static, others, like MJ Freeway, predicted that the market would take a dip; which is precisely what happened. According to Paxhia, it was easy to see why.

“Living in San Francisco, some of those [cannabis] clinics, I felt like I was going to get sick from going in there,” recalled Paxhia. “I think there’s a number of reasons why people for a long time side-stepped getting medical cards. Once it became adult use, there were some very ready purchasers.”

As the adult use market began to mature in Colorado, Washington, and other states; the consensus became that adult use of cannabis would always kill the medical market. However, looking at the data, Horton and her partners discovered that after 12 months of legalization, the medical market actually grew by 45% while the adult use market only increased by 38%.

“People think the medical market is dead. Recreational shows up, people aren’t investing in those products, they’re not developing IP around those products, and they should be,” said Horton. “There’s a real medical market, and there are real medical patients, and that’s an opportunity I think people aren’t spending time on.”

Closing out the event, the panelists speculated on the future of the medical cannabis market and whether or not both the medical and adult use market would eventually fade away into just one unified cannabis market. Although it is a possibility, Billingsley was skeptical, stating that there would always be a need for medical cannabis.

“There will always be medical conditions that need a medical product that has some true efficacy for that condition,” said Billingsley. “It is a recreational substance, but it also has a truly efficacious benefit on the medical side.”

Stay tuned to find out more about happened at the Green Market Summit, as the Green Market Report gives you an in-depth look at the event throughout the week. Click here to read the previous recaps on cannabis banking, international cannabis, and an exclusive interview between legendary financial analyst Jim Cramer and The Green Organic Dutchman CEO Brian Athaide.


StaffStaffSeptember 5, 2018
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4min9440

JACKSONVILLE, Fla., September 5, 2018/AxisWire/ Athletes for CARE (A4C), a not-for-profit organization dedicated to creating a community where athletes can find support and raise awareness about the many challenges they face, announced today that Emily Paxhia has joined its Board of Directors.

Created for athletes by athletes, A4C strives to assist athletes both on and off the field by offering educational programs and services built specifically to help them overcome many of the issues they may be struggling with. Additionally, A4C helps fund and commission research initiatives designed to benefit athletes directly.

“We are thrilled to welcome Emily to our board and we look forward to her contributions,” said Anna Valent, Executive Director at Athletes for CARE. “Emily is a born leader with a keen understanding of management and oversight. Her proven track record of excellence will prove invaluable as Athletes for CARE continues to advocate, educate, and support both current and former professional athletes.”

Ms. Paxhia is a co-founder and a managing director at Poseidon Asset Management, an investment management company that invests exclusively in the legal cannabis industry. As a managing director, she works closely with her partners to create consequential deal structures and ensure that proper governance is carried out at the company level. Ms. Paxhia has also served on the Board of Directors at the Marijuana Policy Project, one of the most preeminent cannabis advocacy organizations.

“From chronic pain to depression, today’s athletes face a host of debilitating issues once they leave the field of competition and Athletes for CARE has been instrumental in helping them overcome these challenges,” said Ms. Paxhia. “I am deeply honored to join this highly distinguished board and assist in its noble goal of creating a community where all athletes, regardless of their sport, can find support and assistance as they search for new passions and purpose in life after a career in sports.”

About Athletes for CARE

Athletes for CARE (A4C) is a not-for-profit organization dedicated to creating a community where athletes can find support, opportunity, and purpose in life after a career in sports. A4C was founded by a group of pro athletes who are uniting as one voice to advocate for research, education, and compassion when addressing critical health issues facing athletes and the public at large. For more information, please visit athletesforcare.org.

 

Media Contact:

Cynthia Salarizadeh

KCSA Strategic Communications

Cynthia@kcsa.com

 


Video StaffVideo StaffMay 21, 2018

1min16140

The Green Market Report wanted to know what cannabis industry experts thought was the hottest sector in the industry. We asked these leaders at the recently held Cannabis Learn event in Philadelphia. Comments from Lori Glauser of Evio Labs, Ed Keating of Cannabiz Media, Emily Paxhia of Poseidon Asset Management, Jared Mirsky of Wick & Mortar and Matthew Nordgren of Arcadian Fund.



About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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