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Investor Peter Thiel’s Fund Buys Into Marijuana Business

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In this March 8, 2012 file photo, Peter Thiel speaks in San Francisco. This presidential election is on track to cost nearly $2 billion, thanks to mountains of money flowing to both campaigns and independent, “super” political committees working on their behalf. Wealthy Americans are increasingly picking up the tab this year, at times giving millions of dollars to super PACs.  (AP Photo/Ben Margot, File)

In this March 8, 2012 file photo, Peter Thiel, a founder of Founders Fund, speaks in San Francisco.  (AP Photo/Ben Margot, File)

 

JONATHAN FAHEY, AP Business Writer

NEW YORK (AP) — 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.

And Founders Fund does not expect a quick turnaround on its investment in Privateer, Lewis said. Founders is investing in Privateer because it believes Privateer can eventually establish mainstream brands that will be recognized and trusted as marijuana becomes legal and socially acceptable, he said.

Privateer was founded in 2010 and has previously landed $22 million in funding.

Before the announcement Thursday, Privateer’s funding came mostly through wealthy individuals and investment offices that steer private family funds.

Privateer CEO Brendan Kennedy thinks the Founders investment will lead to more professional investment into marijuana-related businesses and help advance the push toward legalization.

“One of the important milestones for this business is having access to capital, and significant capital,” he said. “There will be a lot of people who wake up (now) and realize they need to look at this industry just as they have looked at other emerging industries around the world.”

Founders Fund was an early investor in Facebook and has current investments in SpaceX, Spotify and Airbnb.

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

 

Business

Oakland Children’s Hospital Workers and Patients Rally for Pediatric Medical Care

OAKLAND POST — “Children who go through a bone marrow transplant are immunocompromised, meaning that their immune system has been wiped out,” and having to take public transport to San Francisco exposes patients to the risk of getting a dangerous infection, said Paola Portillo, a social worker.

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Staff and family members of patients at UCSF Benioff Children's Hospital Oakland in Oakland, Calif., hold signs during a rally on Thursday, July 9, 2026. Rally participants protested the relocation of specialized care clinics to the hospital's San Francisco campus. Photo by Kayla Chan/Bay City News.

Staff, patients’ families, and supporters held a rally recently at UCSF Benioff Children’s Hospital in Oakland to protest the hospital’s decision to relocate specialized treatment clinics to San Francisco.

Protesters said the move is creating barriers for patients to access care and raised concerns over whether the hospital was appropriately using funds partially designated for pediatric services.

In response, hospital officials say they are concentrating resources for highly specialized procedures so patients can receive the highest quality of care.

One of the speakers at the rally, Paola Portillo, a social worker, said the hospital started transferring the clinics a year ago when UCSF Health integrated with the Children’s Hospital Oakland, located at 747 52nd St. in North Oakland.

According to Portillo, patients who need bone marrow treatments and interventional radiology are forced to travel to UCSF Benioff Children’s Hospital in San Francisco, which can be dangerous, she said.

“Children who go through a bone marrow transplant are immunocompromised, meaning that their immune system has been wiped out,” and having to take public transport to San Francisco exposes patients to the risk of getting a dangerous infection, she said.

UCSF spokesperson Kristen Bole says the move improves the hospital’s quality of care, giving bone marrow treatment (BMT) as an example.

“Inpatient BMT is a highly complex service where patient volume, specialized infrastructure, faculty coverage and 24/7 support are essential,” she said in a statement. “Concentrating non-gene therapy inpatient BMT care at Mission Bay allows us to provide the safest and most sustainable model for patients and families.”

Hospital officials also emphasized that moving care was not a one-way street. Beginning this month, patients admitted for rehabilitative treatment have been directed to the children’s hospital in Oakland, Bole said.

Speakers at the rally also claimed UCSF has not been transparent about how it has allocated funding from 2020’s Measure C, a measure that created a half-percent sales tax that partially funded pediatric health care at the children’s hospital.

“The community fought so hard for Measure C because every child deserves access to lifesaving, pediatric, high-quality care right here in Oakland,” said Agnes Cho, a policy advisor speaking on behalf of Alameda County Supervisor Nikki Fortunato Bas. “The funding should go towards strengthening care for children right here in Oakland.”

Protesters also said UCSF’s $3.3 billion endowment has been misused. Last October, the University Professional & Technical Employees union published a report on the University of California’s spending, which highlighted projects such as the $4.3 billion UCSF Helen Diller Medical Center at Parnassus Heights.

“What I have a problem with is saying the kids from the East Bay have to go to San Francisco to get care, so that UC can build a fancy hospital for its richest patients in San Francisco,” said union President Dan Russell.

The UCSF spokesperson said UCSF has been investing in its Oakland campus, explaining that upgrades that are expected to be completed in 2030 at a cost of $1.6 billion.

“Oakland is central to our pediatric health system, and we are making the largest investment in the campus’ history,” the spokeswoman said. “We do not make investments of this scale in a campus, workforce or community we plan to leave behind.”

This article includes coverage from Bay City News Service and media releases.

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Mount Zion MBC, Church of Jesus Christ of Latter-day Saints Partner to Bring 29,000 Meals to Alameda County

OAKLAND POST — A semi-truckload of food arrived at MZMBC in Oakland on Tuesday, July 21. This was one of 250 trucks the LDS church is sending throughout the United States. By the end of the year 10 million pounds of food will be donated. Each truck carries approximately 40,000 pounds of shelf-stable pantry staples that can feed 1,400 families for one week.

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Pastor Michael Wallace of Mt. Zion Missionary Baptist Church (center) and David Kimball, president of the Oakland Stake of the LDS church listen to remarks before volunteers began their work. “We are grateful to partner with these organizations to help care for those in need in our community,” Kimball later told the assembled volunteers. Courtesy photo.

The interfaith community effort commemorates the 250th anniversary of the U.S.

More than 29,000 meals were received and distributed at the historic Mount Zion Missionary Baptist Church in West Oakland as part of an interfaith community effort to commemorate the 250th anniversary of the United States.

The Alameda County Community Food Bank (ACCFB), Mt. Zion Missionary Baptist Church (MZMBC), and the Church of Jesus Christ of Latter-day Saints (LDS) partnered to address food insecurity throughout Alameda County.

A semi-truckload of food arrived at MZMBC in Oakland on Tuesday, July 21. This was one of 250 trucks the LDS church is sending throughout the United States. By the end of the year 10 million pounds of food will be donated. Each truck carries approximately 40,000 pounds of shelf-stable pantry staples that can feed 1,400 families for one week.

Pastor Michael Wallace of Mt. Zion Missionary Baptist Church provides instruction as volunteers unpack pallets of food to be distributed. “We believe that having food is a basic human right and to address it is our Christian duty,” Wallace said. “That’s what makes this partnership so meaningful.” Courtesy photo.
Pastor Michael Wallace of Mt. Zion Missionary Baptist Church provides instruction as volunteers unpack pallets of food to be distributed. “We believe that having food is a basic human right and to address it is our Christian duty,” Wallace said. “That’s what makes this partnership so meaningful.” Courtesy photo.

The need for food is significant. According to the ACCFB, 1 in 4 members of the community they serve is experiencing or at risk of hunger.

“The challenges get much harder during the summer when children no longer have access to healthy meals at school,” says Regi Young, executive director of Alameda County Community Food Bank. “Our community and our food bank face similar challenges accessing some of the highest quality and high demand foods because they are typically also the most expensive.

Oakland Mayor Barbara Lee speaks at the JustServe event.
Oakland Mayor Barbara Lee speaks at the JustServe event.

“Fresh milk is among the top items on these lists, so we are extremely grateful for this donation to help more families stretch their budgets and get through these challenging summer months,” Young said.

Two days later, on July 23, another semi-truck, this one bearing fresh milk from the LDS church, arrived at the ACCFB.
Event organizers share a commitment to caring for those in need and fostering meaningful service connections within communities.

“After 250 years, there is still food insecurity in America, and this is an interfaith community effort to eradicate hunger in our communities and cities,” said Pastor Michael Wallace of Mount Zion. “We believe that having food is a basic human right and to address it is our Christian duty. That’s what makes this partnership so meaningful.”

“Members of the Church of Jesus Christ of Latter-day Saints believe in following the Savior’s commandments to love God and to love our neighbor,” says David Kimball, president of the Oakland Stake of the LDS church. “We are grateful to partner with these organizations to help care for those in need in our community.”

Word Assembly First Lady Denise Clark, left, joined Mt. Zion Missionary Baptist Church First Lady Velma Wallace at the food distribution site, where the first of the 250 truckloads of food LDS will provide to places across the country was distributed. Courtesy photo.
Word Assembly First Lady Denise Clark, left, joined Mt. Zion Missionary Baptist Church First Lady Velma Wallace at the food distribution site, where the first of the 250 truckloads of food LDS will provide to places across the country was distributed. Courtesy photo.

Welcoming the truck’s arrival at 10 a.m. at MZMBC were Kimball, Young, Wallace of MZMBC, and civil rights activist and Post News Group Publisher Paul Cobb. Oakland Mayor Barbara Lee was in attendance and addressed the hundreds of volunteers. Inspiring music was provided by members of the Oakland Interfaith Gospel Choir under the leadership of Terrance Kelly.

Teens from both churches were on hand to assist with loading food items for various local nonprofits and community groups to distribute to those in need. The teens also assembled 1,000 hygiene kits for the unhoused. Each kit will include a note of encouragement written by the children and youth of each church.
The churches and organizations that received food include:

  • Mt. Zion Missionary Baptist Church
  • ECAP (Emeryville Citizens Assistance Program)
  • Support Life Foundation/Islamic Cultural Center of Northern California (ICCNC)
  • Serenity House
  • CRECE (Central American Refugee Committee)
  • ION (Impact Oakland Now -Word Assembly, Center of Hope and Abyssinian Baptist Church)
  • True Faith Baptist Church (East Oakland)

“These two large shipments of food and milk, along with this interfaith, community event, exemplify the spirit of volunteerism and community service that this country was built on,” says Gregg Ankenman, assistant director of Community Service for the Oakland/San Francisco Communication Council of the LDS Church.

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Councilmember Houston Helps Deter Trend to Award Contracts to Suburban Companies

OAKLAND POST — “I am proud to see Oakland’s Quality Body & Fender receive a $1.05 million City contract. This award recognizes a longstanding Oakland business and reflects the values that local companies bring to our community. Supporting qualified local vendors helps strengthen our local economy, creates opportunities for Oakland jobs and businesses, and keeps public investment circulating within our city,” said Oakland City Councilmember Ken Houston.

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Enoch Shin, left, operator of an auto body shop on International Boulevard in Oakland, with City Councilmember Ken Houston, right, at the Oakland City Council meeting on Tuesday.

Pushes for Oakland-based Firms to Provide Repair for City-Operated Vehicles

Part 1

Concerned about how Oakland-based and/or minority firms have been “systematically omitted from bidding on millions of dollars of city work through the ‘waiver process’ and through neglect,” Oakland City Councilmember Ken Houston challenged an agenda item at Tuesday’s council meeting that would have awarded more than $6 million to suburban contractors for body and fender work on City vehicles.

Houston said, “I was concerned that, of the contracts presented, only one was awarded to a small, homegrown Oakland business — Quality Body & Fender located on Martin Luther King Jr. Way. The remaining contracts—with the exception of one additional contract added—were awarded to vendors located outside of the City of Oakland (Dixon, Concord and San Leandro), leaving out certified Oakland businesses, some of whom have been here for over 30 years.

“As both a City Councilmember and someone who was born and raised in Oakland, I believe we have a responsibility to invest in the businesses that invest in our community. When qualified local companies have the expertise and capacity to perform the work, they deserve a fair opportunity to compete for City contracts.

“I am proud to see Oakland’s Quality Body & Fender receive a $1.05 million City contract. This award recognizes a longstanding Oakland business and reflects the values that local companies bring to our community. Supporting qualified local vendors helps strengthen our local economy, creates opportunities for Oakland jobs and businesses, and keeps public investment circulating within our city,” he said.

Houston’s comments bring to mind the recent disparity study by Mason Tillman Associates for Oakland, which concluded that African American and women-owned businesses did not receive contracts comparable to their populations, but moreover nearly 65% of the city’s prime contracts were awarded to non-Oakland businesses.

“Supporting local businesses means investing in our own economy,” Houston said. “When we keep Oakland City dollars local, we strengthen small businesses, create jobs, and build long-term economic prosperity for our community.”

A procurement process that values Local and Small Business Enterprise (L/SBE) participation should recognize the broader economic benefits of awarding contracts to qualified Oakland businesses, he said.

Houston introduced Enoch Shin, operator of an automobile repair company at 1722 International Blvd., as an example of a business owner who is losing money, employees, and opportunities to generate revenues for Oakland.

Shin said he has lost $6 million in the last two years and laid off 19 employees, a workforce that consisted of African Americans, Asians, Indians, and many others.

Houston noted that the issue will come up for further consideration this fall before the full City Council.

“I will continue advocating for a procurement process that gives qualified, local vendors meaningful opportunities to compete while recognizing the long-term value of keeping Oakland’s investments in Oakland.

Houston encouraged all Oaklanders to participate in the upcoming City Council hearing. “Your voice matters, and together we can ensure our city’s investments benefit the people and businesses that call our community home,” Houston said.

He also announced that he will accept an invitation to join a citywide town hall with the Post Impact Foundation, inviting the Metropolitan Chamber of Commerce to lead the Oakland business community and the Port of Oakland to join with other business advocates from the Black, Asian and Hispanic communities. “A lot of these decisions to exclude Oakland-based businesses are being made by city staff who don’’ live here,” Houston said.

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