The pros are getting into pot. Founders Fund, the $2 billion San Francisco venture capital firm run by Silicon Valley stars including Peter Thiel, co-founder and former CEO of Paypal, is investing in Privateer Holdings, a marijuana company that owns several pot-related brands.
The companies declined to disclose the size of the investment Thursday, but described it as a "multi-million dollar" participation in a $75 million fundraising effort by Privateer. The deal had been rumored last year.
Privateer, based in Seattle, owns the Canadian medical marijuana producer Tilray and the pot information service Leafly. It is also launching a brand of marijuana and products with the family of Bob Marley called Marley Natural.
Founders Fund partner Geoff Lewis, who is leading the firm's investment in Privateer, said in an interview that he believes the broader legalization of marijuana is inevitable.
"Public sentiment is there, and it crosses political lines," Lewis said.
There are 23 states that allow the use of marijuana for medical purposes and Colorado has legalized its recreational use.
There has been some pushback, however, despite growing public support. The states of Nebraska and Oklahoma have filed a lawsuit seeking to overturn the legalization of marijuana in Colorado, saying that they are being overrun with marijuana from across their borders.