Strategy

Archytas Ventures provides investors with the unique ability to access tailored financing to market-leading cannabis businesses through our highly developed operating platform. Archytas’s objective is to generate risk-adjusted returns through recurring income from its investments with warrants or equity kickers for additional upside.

Our investment process is focused on understanding a company’s situation-specific capital requirements and working with management to structure a solution suitable for all parties involved.

Criteria

Archytas Ventures is focused on disciplined underwriting and active portfolio monitoring to originate investments, which are primarily senior secured cash flow, asset-based and enterprise value-based loans.

  • Structure – Asset-backed, cash flow, and enterprise value-based loans with equity upside
  • Investment Size – $1,000,000 up to $25,000,000
  • Investment Characteristics – Public or private ownership, supported by cash flow and enterprise value with strong management teams

Opportunity

The state of cannabis today is reminiscent of alcohol prohibition from 1920-1933. The federal illegality of cannabis has created a highly complex, opaque, and capital-constrained environment.

With sector valuations at all-time lows and 22.7% compounded growth projected over the next five years, we believe new investments in 2020 present the best risk-reward scenario in years.  For now, access to capital is sparse and costly for businesses attempting to build out the infrastructure required to support this fragmented market, thus creating an opportunity for Archytas Ventures and its stakeholders.