Phyto Partners targets $50m for third cannabis PE fund

Phyto Partners is seeking to raise $50 million for its third cannabis-focused private equity fund.

Phyto Partners is seeking to raise $50 million for its third cannabis-focused private equity fund. Phyto is focusing on early and later stage privately held companies “that solve critical industry challenges.”


BOCA RATON, Fla., Feb. 20, 2020 /PRNewswire/ — Phyto Partners, a top cannabis investment fund, is launching a third cannabis-focused private equity fund modeled after its first two funds, Phyto Partners I, LP and Phyto II, LP. Phyto Partners plans to leverage its early mover advantage and industry expertise to source early and later stage privately held companies that solve critical industry challenges. Phyto is targeting a $50 million fund and is open to investor inquiries from Accredited investors.

When asked about the industry investment opportunity at large, Managing Partner Larry Schnurmacher said, “I honestly believe that we are at the very early stages of the cannabis industry evolution and there isn’t a better industry to go hunting for Unicorns,” referring to companies that reach $1 billion in market value. “We are seeing nascent companies developing industry-specific, business-critical solutions for an industry that is estimated to be growing to $100 billion in annual revenue. Some of these companies will win big and become the industry leaders in the coming years.”

As Cannabis industry data continues to develop, reports from BDS Analytics and Neilsen continue to suggest that the cannabis consumer total addressable market continues to expand and the cannabis industry looks to disrupt many consumer markets.

Phyto’s first two funds boast investments in some of the industry’s demonstrated market leaders including Leaflink, Flowhub, Wurk, Vangst and Front Range Biosciences. Phyto has created an ecosystem of investments in the cannabis industry from cultivation equipment to physician clinic networks. Phyto also focuses on technology solutions and big data engines that are able to help the industry understand the consumer and overcome its early growing pains.

When asked about recent industry developments, Schnurmacher said, “The cannabis industry has just gone through a reset of expectations and valuations opening up an incredible investment opportunity the likes of which we haven’t seen since the cannabis industry first got going in 2014.”