Strategy

Our primary objective is to partner with companies to help achieve their full potential. We help companies grow and build lasting value through our deep sector know-how and vast network within the global cannabis and hemp industries. As one of the leading sector focused investment firms, we utilize our knowledge and relationships in every partnership we form. This strategy and our proven investment approach allow us to generate attractive risk-adjusted returns in the rapidly growing cannabis industry. Our investment strategy is three-fold:

  • Partnership – Archytas Ventures seeks to partner with companies that are characterized by experienced management teams with exceptional track records who are seeking to increase their companies’ growth trajectories.
  • Flexible underwriting – Archytas has a flexible mandate to invest across the entire capital structure. Our investment objective is to provide a capital solution that allows management to focus on optimizing their company’s long-term growth objectives.
  • Value-maximizing initiatives – Once partnered, we leverage our operational expertise and vast cannabis network to drive strategic initiatives and accelerate growth.

Criteria

Archytas Ventures targets companies and investments that generally satisfy the following criteria:

  • Structure – early stage venture capital, change-of-control acquisitions; management buyouts of interests from inactive or outside shareholders; corporate divestitures and carve-outs of non-core businesses or divisions; and minority-interest growth equity investments as a capital partner for acquisitions or expansion.
  • Company Size – $5M to $300M
  • Industry Sectors – Vertically integrated cannabis companies, business solutions, consumer products, SAAS, biotechnology, data analytics
  • Investment Size – $100,000 up to $10,000,000 with ability to make additional investments
  • Key Characteristics – Leading and defensible position within niche market served, identifiable growth vectors through organic initiatives or acquisition, and best-in-class operating 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.

Today, federal legalization of cannabis should unlock significant tax dollars, decimate the illicit market, reduce the prison population and have a major impact on the opioid crisis. Over 60% of Americans agree as evidenced by their support for full legalization. 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 the opportunity for Archytas.