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Aug 20, 2017 · 23m · top-founders

757: She Launched a $20m Cannabis VC Firm After Her Parents Passed Away

Emily Paxia · 12m spoken Nathan Latka · 8m spoken
0:00 / 0:00

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Host Nathan Latka interviews Emily Paxia, co-founder of Poseidon Asset Management, about turning personal tragedy into a pioneering $25 million venture capital fund dedicated to scaling cannabis technology and operational infrastructure.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 42.3% of the talking time here. How this is scored →

Nathan as informed peer 3.7 Guest teaching 2.3 Guest disagreement 0.4 Nathan pushing back 0.7
05100:0010:0020:001:46–4:00 · Nathan as informed peer 2/10 Founding Story: Personal Tragedy and Market White Space Latka asks straightforward questions about Paxia's pivot from Fortune 500 consulting to cannabis venture capital. Paxia explains her family's personal experience with cancer and hospice care, educating Latka on palliative cannabis applications.4:00–6:24 · Nathan as informed peer 5/10 Launching Poseidon: Capital Commitments and Fund Structure Latka probes the mechanics of launching a fund, quickly doing the math on Paxia's personal $2M capital commitment relative to their $20M to $25M fund size. Paxia transparently details their risk assessment and founder commitments.6:24–9:11 · Nathan as informed peer 7/10 Sibling Decision-Making: Surna and Wurk Investments Latka demonstrates deep domain knowledge of portfolio company Wurk from a previous interview, reciting specific revenue and customer figures. Paxia provides context on turnaround decisions and investment consensus with her brother.9:11–13:03 · Nathan as informed peer 3/10 Addressing Industry Stigma and the Wellness Perspective Latka playfully probes industry stereotypes by asking if they are always high. Paxia reframes the premise by comparing cannabis to wellness, coffee, and Silicon Valley nootropics while detailing structural state banking challenges.13:03–16:36 · Nathan as informed peer 4/10 Fund Diligence Process and Investment Metrics Latka inquires about LP return expectations, suggesting modest target IRRs of 15% to 20%. Paxia corrects him by noting their historical realized performance has tracked between 40% and 44%.16:37–19:37 · Nathan as informed peer 4/10 Top Portfolio Companies and Venture Thesis Paxia runs through her high-conviction portfolio bets across supply chain data, agtech, and marketing. Latka pitches himself as a potential real estate co-investor for cultivation facilities.19:40–22:42 · Nathan as informed peer 1/10 Sponsor Break: GetLatka Database and TheTopInbox Latka delivers sponsor ad reads for GetLatka and TheTopInbox before transitioning into standard rapid-fire questions to conclude the interview.1:46–4:00 · Guest teaching 3/10 Founding Story: Personal Tragedy and Market White Space Latka asks straightforward questions about Paxia's pivot from Fortune 500 consulting to cannabis venture capital. Paxia explains her family's personal experience with cancer and hospice care, educating Latka on palliative cannabis applications.4:00–6:24 · Guest teaching 1/10 Launching Poseidon: Capital Commitments and Fund Structure Latka probes the mechanics of launching a fund, quickly doing the math on Paxia's personal $2M capital commitment relative to their $20M to $25M fund size. Paxia transparently details their risk assessment and founder commitments.6:24–9:11 · Guest teaching 1/10 Sibling Decision-Making: Surna and Wurk Investments Latka demonstrates deep domain knowledge of portfolio company Wurk from a previous interview, reciting specific revenue and customer figures. Paxia provides context on turnaround decisions and investment consensus with her brother.9:11–13:03 · Guest teaching 5/10 Addressing Industry Stigma and the Wellness Perspective Latka playfully probes industry stereotypes by asking if they are always high. Paxia reframes the premise by comparing cannabis to wellness, coffee, and Silicon Valley nootropics while detailing structural state banking challenges.13:03–16:36 · Guest teaching 4/10 Fund Diligence Process and Investment Metrics Latka inquires about LP return expectations, suggesting modest target IRRs of 15% to 20%. Paxia corrects him by noting their historical realized performance has tracked between 40% and 44%.16:37–19:37 · Guest teaching 2/10 Top Portfolio Companies and Venture Thesis Paxia runs through her high-conviction portfolio bets across supply chain data, agtech, and marketing. Latka pitches himself as a potential real estate co-investor for cultivation facilities.19:40–22:42 · Guest teaching 0/10 Sponsor Break: GetLatka Database and TheTopInbox Latka delivers sponsor ad reads for GetLatka and TheTopInbox before transitioning into standard rapid-fire questions to conclude the interview.1:46–4:00 · Guest disagreement 0/10 Founding Story: Personal Tragedy and Market White Space Latka asks straightforward questions about Paxia's pivot from Fortune 500 consulting to cannabis venture capital. Paxia explains her family's personal experience with cancer and hospice care, educating Latka on palliative cannabis applications.4:00–6:24 · Guest disagreement 0/10 Launching Poseidon: Capital Commitments and Fund Structure Latka probes the mechanics of launching a fund, quickly doing the math on Paxia's personal $2M capital commitment relative to their $20M to $25M fund size. Paxia transparently details their risk assessment and founder commitments.6:24–9:11 · Guest disagreement 0/10 Sibling Decision-Making: Surna and Wurk Investments Latka demonstrates deep domain knowledge of portfolio company Wurk from a previous interview, reciting specific revenue and customer figures. Paxia provides context on turnaround decisions and investment consensus with her brother.9:11–13:03 · Guest disagreement 2/10 Addressing Industry Stigma and the Wellness Perspective Latka playfully probes industry stereotypes by asking if they are always high. Paxia reframes the premise by comparing cannabis to wellness, coffee, and Silicon Valley nootropics while detailing structural state banking challenges.13:03–16:36 · Guest disagreement 1/10 Fund Diligence Process and Investment Metrics Latka inquires about LP return expectations, suggesting modest target IRRs of 15% to 20%. Paxia corrects him by noting their historical realized performance has tracked between 40% and 44%.16:37–19:37 · Guest disagreement 0/10 Top Portfolio Companies and Venture Thesis Paxia runs through her high-conviction portfolio bets across supply chain data, agtech, and marketing. Latka pitches himself as a potential real estate co-investor for cultivation facilities.19:40–22:42 · Guest disagreement 0/10 Sponsor Break: GetLatka Database and TheTopInbox Latka delivers sponsor ad reads for GetLatka and TheTopInbox before transitioning into standard rapid-fire questions to conclude the interview.1:46–4:00 · Nathan pushing back 0/10 Founding Story: Personal Tragedy and Market White Space Latka asks straightforward questions about Paxia's pivot from Fortune 500 consulting to cannabis venture capital. Paxia explains her family's personal experience with cancer and hospice care, educating Latka on palliative cannabis applications.4:00–6:24 · Nathan pushing back 1/10 Launching Poseidon: Capital Commitments and Fund Structure Latka probes the mechanics of launching a fund, quickly doing the math on Paxia's personal $2M capital commitment relative to their $20M to $25M fund size. Paxia transparently details their risk assessment and founder commitments.6:24–9:11 · Nathan pushing back 1/10 Sibling Decision-Making: Surna and Wurk Investments Latka demonstrates deep domain knowledge of portfolio company Wurk from a previous interview, reciting specific revenue and customer figures. Paxia provides context on turnaround decisions and investment consensus with her brother.9:11–13:03 · Nathan pushing back 2/10 Addressing Industry Stigma and the Wellness Perspective Latka playfully probes industry stereotypes by asking if they are always high. Paxia reframes the premise by comparing cannabis to wellness, coffee, and Silicon Valley nootropics while detailing structural state banking challenges.13:03–16:36 · Nathan pushing back 1/10 Fund Diligence Process and Investment Metrics Latka inquires about LP return expectations, suggesting modest target IRRs of 15% to 20%. Paxia corrects him by noting their historical realized performance has tracked between 40% and 44%.16:37–19:37 · Nathan pushing back 0/10 Top Portfolio Companies and Venture Thesis Paxia runs through her high-conviction portfolio bets across supply chain data, agtech, and marketing. Latka pitches himself as a potential real estate co-investor for cultivation facilities.19:40–22:42 · Nathan pushing back 0/10 Sponsor Break: GetLatka Database and TheTopInbox Latka delivers sponsor ad reads for GetLatka and TheTopInbox before transitioning into standard rapid-fire questions to conclude the interview.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 67.8% · guest 32.2%0:00 · Nathan 67.8% · guest 32.2%3:00 · Nathan 23.9% · guest 76.1%3:00 · Nathan 23.9% · guest 76.1%6:00 · Nathan 30.6% · guest 69.4%6:00 · Nathan 30.6% · guest 69.4%9:00 · Nathan 29.7% · guest 70.3%9:00 · Nathan 29.7% · guest 70.3%12:00 · Nathan 28.2% · guest 71.8%12:00 · Nathan 28.2% · guest 71.8%15:00 · Nathan 26.9% · guest 73.1%15:00 · Nathan 26.9% · guest 73.1%18:00 · Nathan 59.3% · guest 40.7%18:00 · Nathan 59.3% · guest 40.7%21:00 · Nathan 81.1% · guest 18.9%21:00 · Nathan 81.1% · guest 18.9%
Sharpest disagreement ▶ 9:19 Paxia rejects the stoner stereotype

Paxia directly rejects Latka's provocative question about being constantly high, explaining operational discipline and drawing comparisons to everyday substances.

 Hardest push from Nathan ▶ 9:11 Latka asks about constant cannabis consumption

Latka intentionally presses Paxia on whether cannabis investors and founders are constantly intoxicated.

 Biggest teaching moment ▶ 13:46 Paxia corrects Latka on fund returns

When Latka suggests target IRRs around 15% to 20%, Paxia educates him on their actual performance delivering 40% to 44% annual returns.

 Nathan holds their own ▶ 8:31 Latka cites exact portfolio metrics

Latka exhibits strong SaaS domain expertise by citing exact ARPU, monthly revenue, and customer numbers for Paxia's portfolio company Wurk.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Founding Story: Personal Tragedy and Market White Space 2300 Latka asks straightforward questions about Paxia's pivot from Fortune 500 consulting to cannabis venture capital. Paxia explains her family's personal experience with cancer and hospice care, educating Latka on palliative cannabis applications.
Launching Poseidon: Capital Commitments and Fund Structure 5101 Latka probes the mechanics of launching a fund, quickly doing the math on Paxia's personal $2M capital commitment relative to their $20M to $25M fund size. Paxia transparently details their risk assessment and founder commitments.
Sibling Decision-Making: Surna and Wurk Investments 7101 Latka demonstrates deep domain knowledge of portfolio company Wurk from a previous interview, reciting specific revenue and customer figures. Paxia provides context on turnaround decisions and investment consensus with her brother.
Addressing Industry Stigma and the Wellness Perspective 3522 Latka playfully probes industry stereotypes by asking if they are always high. Paxia reframes the premise by comparing cannabis to wellness, coffee, and Silicon Valley nootropics while detailing structural state banking challenges.
Fund Diligence Process and Investment Metrics 4411 Latka inquires about LP return expectations, suggesting modest target IRRs of 15% to 20%. Paxia corrects him by noting their historical realized performance has tracked between 40% and 44%.
Top Portfolio Companies and Venture Thesis 4200 Paxia runs through her high-conviction portfolio bets across supply chain data, agtech, and marketing. Latka pitches himself as a potential real estate co-investor for cultivation facilities.
Sponsor Break: GetLatka Database and TheTopInbox 1000 Latka delivers sponsor ad reads for GetLatka and TheTopInbox before transitioning into standard rapid-fire questions to conclude the interview.

Statements from this episode (10)

Disclosure
Paxia: Founders hold 10% of Poseidon Asset Management's fund capital
“Right as it stands, I believe we're at a still at about 10% of the capital of that fund, but that's also through the growth of our fund, so.”
Emily Paxia Aug 20, 2017 ▶ 5:40
Assertion Supported
Paxia: Poseidon Asset Management nears $25M final close for cannabis fund
“Oh, it's at about twenty million today, and we're wrapping up closing at about 25.”
Emily Paxia Aug 20, 2017 ▶ 5:53
Disclosure
Paxia: Poseidon bought out departing founder's shares in publicly traded Surna
“There were just, it was looking grim, and we were already invested in it, and Morgan came to me with the idea to buy out the founder's shares.”
Emily Paxia Aug 20, 2017 ▶ 6:54
Assertion Partly supported
Latka: Cannabis HR platform Wurk hits $50K MRR and 200 customers
“So they passed 200 customers, 20 dollar monthly ARPU, over 50 grand a month in revenue, and they've raised three million bucks.”
Nathan Latka Aug 20, 2017 ▶ 8:49
Opinion
Paxia: Outdoor greenhouses are the most viable route for California cannabis
“The greenhouses that are going to be going crazy in California, and just because that is a more viable route for these massive grows to go in the future, outdoor greenhouse, I really think, is the way”
Emily Paxia Aug 20, 2017 ▶ 11:10
Assertion Supported
Paxia: Banks and credit card processors routinely drop cannabis businesses
“The issue is that we're still, you know, the banks are still dropping businesses left and right. Credit card processing companies drop them left and right.”
Emily Paxia Aug 20, 2017 ▶ 12:18
Assertion Not checkable as stated
Paxia: Poseidon generated 40% to 44% IRR over its first 3.5 years
“No, I mean, we've been running at more of a 40 to 44%. ... Three and a half years, yeah.”
Emily Paxia Aug 20, 2017 ▶ 13:58
Assertion Not checkable as stated
Paxia: Poseidon holds 30 active portfolio companies from 40 lifetime investments
“Okay, so we've got 30 active companies in the portfolio right now. We've had over 40 in the lifetime of the portfolio.”
Emily Paxia Aug 20, 2017 ▶ 15:24
Disclosure
Paxia: Poseidon writes initial checks between $200K and $1.5 million
“If it's a very early stage company, we're probably more in the 200 to two 50,000 state initial check size now. But we're now writing more around five to one, 500 to a million, a 1,000,005.”
Emily Paxia Aug 20, 2017 ▶ 16:02
Disclosure
Paxia: Poseidon backed Flow Kana to build Northern California processing center
“We just did this investment with them both into the company and the real estate, and it's going to be one of the largest processing centers in Northern California.”
Emily Paxia Aug 20, 2017 ▶ 17:44
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