top of page

Evergreen Growers LLC Cannabis Blog

Evergreen Growers LLC Cannabis Consultants
offer a wide range of services.

In this Blog, you will find all the latest: 
Cannabis News and Stay Up to Date with New Market Trends.

A Guide for Investment Opportunities in Cannabis Private Equity / Los Angeles Area

Cannabis is one of the fastest-growing industries in the world, with a projected global market size of $102.2 billion by 20301. The legalization of medical and recreational cannabis in many countries and states has opened new opportunities for investors who want to capitalize on this green rush. However, investing in cannabis is not without risks and challenges, as the industry faces legal uncertainties, regulatory hurdles, market volatility, and fierce competition. In this blog post, we will explore some of the cannabis investment opportunities and the different types of investment options available for investors who want to get involved in the cannabis private equity industry only, with a focus on the local cannabis regions of Los Angeles area.


What is Cannabis Private Equity?


Private equity is a form of alternative investment that involves buying stakes in private companies or taking public companies private with the aim of improving their performance and profitability. Private equity investors typically have a long-term horizon and seek high returns on their investments. Cannabis private equity offers investors access to some of the most innovative and promising cannabis companies that are not available on the public markets. However, cannabis private equity also involves high risks, high fees, low liquidity, limited transparency, and regulatory uncertainty.


Why Investment Opportunities in Cannabis Private Equity in Los Angeles Area?


Los Angeles area is one of the most attractive and lucrative markets for cannabis in the US and the world. According to a report by Arcview Market Research and BDS Analytics2, Los Angeles county alone accounted for $1.8 billion of legal cannabis sales in 2020, making it the largest cannabis market in the world. The report also projected that Los Angeles county will reach $2.7 billion of legal cannabis sales by 2024, with a CAGR of 11%. There are several reasons why investors may choose to invest in cannabis private equity in Los Angeles area, such as:

  • Exposure to a large and diverse consumer base: Los Angeles area has a population of over 10 million people, with a wide range of demographics, preferences, and needs. The demand for cannabis products is driven by various factors, such as medical benefits, recreational use, wellness, lifestyle, or social justice. Cannabis private equity investors can benefit from this large and diverse consumer base by investing in companies that offer innovative and differentiated products and services that cater to various segments and niches of the market.

  • Access to a vibrant and competitive industry ecosystem: Los Angeles area has a rich history and culture of cannabis, dating back to the 1960s when it became a hub for hippies, artists, activists, and celebrities who embraced cannabis as part of their lifestyle. Today, Los Angeles area is home to thousands of cannabis businesses that operate across various segments of the industry, such as cultivation, processing, distribution, retail, technology, biotechnology, or ancillary services. Los Angeles area also has a supportive and progressive regulatory environment that allows for various types of licenses and permits for cannabis businesses. Cannabis private equity investors can access this vibrant and competitive industry ecosystem by investing in companies that have strong management teams, proven track records, scalable business models, and loyal customer bases.

  • Potential for exit opportunities: Los Angeles area has witnessed several exit events in recent years, such as the acquisition of MedMen Enterprises Inc. (MMNFF) by Privateer Holdings, the merger of Caliva and Left Coast Ventures to form The Parent Company (TPCO), or the SPAC deal of WM Holding Company, the owner of Weedmaps. These exit events can generate significant returns for cannabis private equity investors.

How to Invest in Cannabis Private Equity in Los Angeles Area?


There are several ways for investors to invest in cannabis private equity in Los Angeles area, depending on their risk appetite, investment goals, and preferences. Here are some of the main ways to invest in cannabis private equity in Los Angeles area:

  • Direct investments: Investors can invest directly in cannabis private equity funds or platforms that provide capital to cannabis companies that are not publicly traded and operate or have a presence in Los Angeles area. These funds or platforms typically have a minimum investment amount, a lock-up period, and a management fee and carry structure. Investors can also co-invest alongside these funds or platforms in specific deals or opportunities. Direct investments allow investors to have more control and influence over their investments, as well as access to more information and communication with the fund managers or platform operators.

  • Indirect investments: Investors can invest indirectly in cannabis private equity funds or platforms that provide capital to cannabis companies that are not publicly traded and operate or have a presence in Los Angeles area through intermediaries or vehicles that pool capital from multiple investors and allocate it to different funds or platforms. These intermediaries or vehicles may include fund-of-funds, exchange-traded funds (ETFs), or crowdfunding platforms. Indirect investments allow investors to have more diversification and liquidity over their investments, as well as lower entry barriers and fees.

Examples of Cannabis Private Equity Funds or Platforms in Los Angeles Area


There are several cannabis private equity funds or platforms that provide capital to cannabis companies that are not publicly traded and operate or have a presence in Los Angeles area. Here are some examples of cannabis private equity funds or platforms in Los Angeles area:

  • Sporos Capital Partners: A private equity firm that focuses on investing in the cannabis ecosystem across the US, Canada, Latin America, Europe, and Israel. The firm is based in Los Angeles, CA, and has invested in companies that have a unique product or service offering with growth potential. Some of its portfolio companies include Akerna (KERN), Fyllo, and Skylight Health (SLHG).

  • Archytas Ventures: A private investment firm that provides flexible financing solutions across the capital structure to companies with exceptional management teams to fuel growth and build value. The firm is based in Los Angeles, CA, and has invested in companies that operate across various segments of the industry, such as cultivation, processing, distribution, retail, technology, biotechnology, or ancillary services. Some of its portfolio companies include Bloom Farms, Cellibre, Sublime and more.

  • Koach Capital: A venture capital firm that invests in early-stage cannabis companies that are disrupting the industry with innovative products, technologies, solutions, or business models. The firm is based in Los Angeles, CA, and has invested in companies that operate across various segments of the industry, such as cultivation, processing, distribution, retail, technology, biotechnology, or ancillary services. Some of its portfolio companies include Eaze, Flowhub, and Wurk.


How to Invest in Cannabis Private Equity in Los Angeles Area Using Evergreen Growers LLC Cannabis Consultants


One of the challenges of investing in cannabis private equity in Los Angeles area is finding and evaluating the best opportunities in a highly fragmented and competitive market. To overcome this challenge, investors can use Evergreen Growers LLC Cannabis Consultants as the best source to attract and retain the best opportunities for investors. Evergreen Growers LLC Cannabis Consultants is a privately held company that works with the leading cultivators and distributors of high-quality cannabis products in Whittier, California. Evergreen Growers LLC Cannabis Consultants work with and help operate a state-of-the-art indoor facilities that produce premium flower strains and extracts. The company also works with delivery services to licensed retailers in Whittier and surrounding areas. Evergreen Growers LLC Cannabis Consultants is committed to sustainability, innovation, and customer satisfaction.

Evergreen Growers LLC Cannabis Consultants can help investors invest in cannabis private equity in Los Angeles area by providing various services, such as:

  • Sourcing: Evergreen Growers LLC Cannabis Consultants can help investors find and screen cannabis private equity opportunities by using their extensive network and connections in the industry. Evergreen Growers LLC Cannabis Consultants can also use their market knowledge and experience to filter and rank the opportunities based on various criteria, such as industry segment, stage, location, valuation, traction, or team.

  • Due diligence: Evergreen Growers LLC Cannabis Consultants can help investors conduct due diligence on cannabis private equity opportunities by using their expertise and resources to verify the identity and credentials of the founders and team members, as well as the quality and quantity of the cannabis products or facilities. Evergreen Growers LLC Cannabis Consultants can also use their reputation and feedback from various stakeholders, such as customers, partners, regulators, or competitors to assess the potential and risks of the opportunities. Evergreen Growers LLC Cannabis Consultants can also use their financial analysis and projections skills to evaluate the performance and profitability of the opportunities based on historical data and industry benchmarks.

  • Portfolio management: Evergreen Growers LLC Cannabis Consultants can help investors manage their cannabis private equity portfolio by using their strategic and operational skills to allocate capital among different investments based on their risk-return profiles and diversification benefits. Evergreen Growers LLC Cannabis Consultants can also use their communication and reporting skills to generate reports and updates on the portfolio performance and status. Evergreen Growers LLC Cannabis Consultants can also use their monitoring and problem-solving skills to identify any changes or issues that may require attention or action.

License types


The Department of Cannabis Control (DCC) issues licenses based on the type of cannabis activity that your business will perform. If you will do more than one activity, you may need more than one license. You must have a valid DCC license before performing any commercial cannabis activity, including:

  • Growing cannabis (cultivation)

  • Transporting cannabis (distribution)

  • Making cannabis products (manufacturing)

  • Testing cannabis or cannabis products (testing laboratory)

  • Selling cannabis (retail)

  • Holding an event where cannabis will be sold (event organizers)

When you know what license type you need, DCC has resources to help you learn:

  • The license application requirements

  • How to apply for a license

  • How the DCC licensing team reviews applications

  • How to renew a license

Cultivation licenses Cultivation license types are based on the:

  • Type of production and lighting used

  • Number of plants grown or size of the canopy. The canopy is the area where mature (flowering) plants are grown.

The cultivation license types are:

  • Specialty cottage

    • Specialty cottage outdoor – up to 25 mature plants or up to 2,500 square feet of canopy

    • Specialty cottage indoor – up to 500 square feet of canopy

    • Specialty cottage mixed-light tier 1 and 2 – up to 2,500 square feet of canopy


  • Specialty

    • Specialty outdoor – up to 50 mature plants or up to 5,000 square feet of canopy

    • Specialty indoor – 501 to 5,000 square feet of canopy

    • Specialty mixed-light tier 1 and 2 – 2,501 to 5,000 square feet of canopy


  • Small

    • Small outdoor – 5,001 to 10,000 square feet of canopy

    • Small indoor – 5,001 to 10,000 square feet of canopy

    • Small mixed-light tier 1 and 2 – 5,001 to 10,000 square feet of canopy


  • Medium

    • Medium outdoor – 10,001 square feet to 1 acre of canopy

    • Medium indoor – 10,001 to 22,000 square feet of canopy

    • Medium mixed-light tier 1 and 2 – 10,001 to 22,000 square feet of canopy


  • Large

    • Large outdoor – more than 1 acre of total canopy

    • Large indoor – more than 22,000 square feet of total canopy

    • Large mixed-light – mixed-light site with more than 22,000 square feet of total canopy


  • Nursery – for cultivators that only grow clones, immature plants, seeds or other types of cannabis used for propagation

  • Processor – for cultivators that only trim, sift, cure, dry, grade, package or label cannabis

Determining your license type Outdoor licenses are for cultivators who grow cannabis outside without using any artificial lighting on mature plants. Indoor licenses are for cultivators who grow cannabis in a permanent structure using at least 25 watts of artificial light per square foot. Mixed-light licenses are for cultivators who grow cannabis in a:

  • Greenhouse

  • Hoop-house

  • Glasshouse

  • Conservatory

  • Hothouse

  • Other similar structure

Mixed-light licenses have two tiers based on the amount of artificial light used:

  • Tier 1 – Up to 6 watts per square foot of artificial light

  • Tier 2 – 6 to 25 watts per square foot of artificial light

Manufacturing license types Manufacturing license types are based on:

  • The activities performed

  • The chemicals used for extraction and post processing, if any

  • Whether the manufacturer works in a shared-use facility

Type 7: volatile solvent manufacturing Type 7 manufacturers can:

  • Use volatile solvents for extraction or post-extraction processing of cannabis extract

  • Use non-volatile solvents for extraction or post processing

  • Use mechanical methods for extraction

  • Make cannabis products through infusion

  • Package and label cannabis products

Volatile solvents are chemicals that produce a flammable gas or vapor. Examples include:

  • Butane

  • Heptane

  • Hexane

  • Propane

Type 6: non-volatile solvent manufacturing or mechanical extraction Type 6 manufacturers can:

  • Use non-volatile solvents for extraction or post-extraction processing

  • Use mechanical methods for extraction

  • Make cannabis products through infusion

  • Package and label cannabis products

Non-volatile solvents are chemicals that do not produce a flammable gas or vapor. Examples include:

  • Ethanol

  • Carbon dioxide

  • Cooking oils

  • Butter

Mechanical extraction uses pressure, heat or cold to extract cannabinoids instead of using chemicals. Examples include:

  • Rosin presses

  • Dry ice

Type N: infusion of products Type N manufacturers can:

  • Make cannabis products through infusion

  • Package and label cannabis

Infusion mixes cannabis extract or plant material with other ingredients to make a cannabis product.

Type P: packaging and labeling Type P manufacturers can only package and label cannabis products. Type S: manufacturers who work in a shared-use facility Type S manufacturers operate in shared-use facilities and can:

  • Extract cannabis using butter or food-grade oils, water, glycerin, vegetable oil, animal fat, or using mechanical methods

  • Make cannabis products through infusion

  • Package and label cannabis

Shared-use facilities are places where multiple Type S manufacturers rotate on a schedule and share space and equipment. A Type 7, 6 or N license can register all or part of their manufacturing premises as a shared-use facility. Distribution licenses Type 11: distributor Type 11 distributors can:

  • Move cannabis and cannabis products between cultivation, manufacturing or distribution premises

  • Move finished cannabis goods to retail premises

  • Provide storage services to other licensees

  • Arrange for testing of cannabis goods

Type 13: transport-only distributor Type 13 distributors can move cannabis and cannabis products between cultivation, manufacturing or distribution premises. Reduced fees are available if you only want to transport the goods you cultivate or manufacture. Testing laboratory licenses The Type 8 license is for laboratories that test cannabis goods prior to sale at a retailer. Testing laboratories must obtain and maintain ISO/IEC 17025 accreditation. You can use an interim testing license while you work on your accreditation. Retail licenses Type 9: non-storefront retailer (delivery only) A non-storefront retailer sells cannabis goods to customers only through delivery. Type 10: storefront retailer A storefront retailer has a physical location where cannabis goods are sold. Storefront retailers can also deliver cannabis goods. Microbusiness licenses The Type 12 license is for businesses that do at least three of the following activities at one location:

  • Cultivation – up to 10,000 total square feet

  • Manufacturing – use of non-volatile solvents, mechanical extraction or infusion

  • Distribution or distribution transport-only

  • Retail – storefront or non-storefront

Event licenses There are two cannabis event license types:

  • Event organizer – for the person hosting cannabis events

  • Temporary cannabis event – for the event itself


Cannabis events can only be held by a person with an event organizer license.

Evergreen Growers LLC Cannabis Consultants is the best source to attract and retain the best opportunities for investors who want to invest in cannabis private equity in Los Angeles area. By using Evergreen Growers LLC Cannabis Consultants’ services, investors can benefit from their professionalism, reliability, and excellence in the cannabis industry.


Last Updated 9/11/2023.


Recent Posts

See All

Kommentit

Arvostelun tähtimäärä: 0/5
Ei vielä arvioita

Lisää arvio
bottom of page