Snoop's Fund – Casa Verde: Navigating Success in Turbulent Times with Karan Wadhera

Insights from Karan Wadhera, Managing Partner at Casa Verde on Thriving in a Dynamic Business Landscape

In this week's episode of Proud to Work in Cannabis, hosted by Karson Humiston, CEO & Founder of Vangst, special guest Karan Wadhera, managing partner at Casa Verde, shares his journey from leaving his investment banking job in Asia to becoming a successful venture capitalist in the cannabis industry. He talks about his experience working with Snoop Dogg, growing Casa Verde from its early days to its current success, and provides valuable insights for entrepreneurs in the regulated cannabis industry.

Karan & Snoop: The Story of Casa Verde

When Karan left his investment banking job in Asia, he didn't know what was next for him. With an entrepreneurial spirit and experience selling to high-ticket investors, it wasn't until Snoop Dogg himself started talking to Karan about the possibilities of cannabis that he finally took the plunge. Karan and Snoop had worked together in the 2000s when Karan was running a media business, and in 2014, Snoop introduced Karan to his Venture Capital Company, Casa Verde Capital, also unofficially known as "Snoop's Fund."

While Casa Verde had already been established, they hadn't raised a significant amount of capital or made any real investments, so Karan was able to step in and grow Casa Verde to where it is today. Using his previous sales skills, Karan quickly put together Casa Verde's official pitch, which yielded $48 million in their first round of funding, almost double their initial goal of $25 million. Karan notes that this time was humbling and similar to the experience of many entrepreneurs when they are raising capital, which has helped him relate to the leaders he works with.

Ultimately, the businesses that have come out of Fund 1 have been prominent names in the industry, including Metrc, LeafLink, Green Bits, Dutchie, and Vangst. While Casa Verde's specialty continues to be ancillary companies, since Fund 1 the team has begun expanding their investments into the plant-touching part of the business, as well as in the European markets.

Cannabis and Mainstream VCs: Bridging the Gap

Karson asks Karan about the unique experience of working with mainstream "Tier 1" VCs to bring them into the cannabis industry - a role that Karan has been playing for years, connecting cannabis companies with traditional investors. Karan remarks that this is a niche in the industry that he has always sought to fill, and attributes most of his success in this area to the importance of educating individuals outside of the industry. He also emphasizes that relationship building is a critical part of any investor relationship, and while not every VC plays this role, it comes naturally to him given the vertical he works in and the connections he has.

Advice for Founders Who Just Closed a Seed Round

While traditional advice for entrepreneurs who just closed their seed round is to keep their heads down and focus on building their business, Karan advises that while this is good and important work, it's also crucial to map out the evolution and trajectory of the business. A good starting point, Karan suggests, is to review when the next round of funding will be needed and create a list working backwards of the goals to achieve by that time. These goals may include how much money you want to raise, how many customers, employees, and revenue base you would like to have, and ultimately where you want to focus your attention in the future.

The Current Cannabis Reset

Karan points out that while most people are quick to notice the downturn in cannabis, they are less quick to see the rebound, pointing to the restabilizing of prices and the evolution of the industry. He acknowledges that the cannabis industry has gone through significant changes in recent years, including shifts in regulations, market dynamics, and consumer preferences. However, he remains optimistic about the future of cannabis and sees it as a unique opportunity for entrepreneurs to adapt and thrive in a rapidly evolving landscape.

Looking Ahead

As the episode comes to a close, Karson and Karan discuss the future of Casa Verde and the cannabis industry as a whole. Karan emphasizes the importance of staying nimble, adaptable, and resilient in the face of challenges. He shares his excitement about Casa Verde's expansion into Europe and their continued focus on ancillary companies, while also keeping an eye on emerging opportunities in plant-touching investments.

Karan also encourages founders in the cannabis industry to be proactive in mapping out their business trajectory, despite the uncertainties of the market. He stresses the importance of being obsessed with one's business, communicating effectively, and having a clear vision for the future.

Overall, Karan Wadhera's journey with Casa Verde and his insights on the cannabis industry provide a unique perspective on the evolving landscape of cannabis business and investments. From his experience raising capital, working with mainstream investors, and advising founders, Karan's passion for the cannabis industry and his drive to support its growth shine through. As the cannabis industry continues to evolve, Casa Verde and its unique approach to investments are poised to make a lasting impact. Don't miss this insightful episode of Proud to Work in Cannabis with Karan Wadhera, available now on Vangst's website and podcast platforms.