What Phyto Partners does

Phyto Partners is a Boca Raton, Florida-based venture capital firm founded in 2015 that manages two sector-focused funds serving accredited investors. The Phyto Cannabis Fund, launched in June 2015, deploys debt and equity capital into privately held companies across the cannabis value chain, including ancillary businesses in education, branded products, agriculture technology, point-of-sale software, and biotechnology. The firm has invested in approximately 30 distinct portfolio companies since inception and has produced multiple liquidity events including the public listings of Agrify (2019) and Greenlane (2020), the 2019 exit of Skylight Health, and the 2023 exit of Marijuana Doctor.

In 2021, Phyto extended its cannabis investment playbook into the emerging psychedelic and brain health sector through the launch of the Phyto Psyche Fund. The Psyche Fund targets companies developing mental health therapeutics, research tools, and ancillary services across the neurowellness value chain, with portfolio holdings spanning companies such as Wonder Sciences, Healing Maps, Mindstate Design, Muse, Healing REIT, Wondermed, and Firefly Neuro (which went public on NASDAQ under ticker AIFF in 2024).

The firm's business model is the standard venture capital model: management fees on committed capital plus carried interest on exits. Phyto differentiates through a 'more than a check' approach, providing portfolio companies with strategic support, business development assistance, introductions to customers, investors, and M&A targets, and facilitating portfolio synergies. Deal sourcing relies on proprietary industry networks and a 6-9 month due diligence framework designed for the regulatory complexity of cannabis and psychedelics. The firm operates with a lean team (1-10 employees), is structured as an LLC, and is led by Managing Partner Larry Schnurmacher with Partner Cody Shandraw, Senior Analyst Aaron Raub, Managing Director Brett Finkelstein, and CFO Gary Rubin.

Name

Phyto Partners

Legal name

Phyto Partners, LLC

Website

https://phytopartners.com

Company type

Private

Founded year

2015

Operating status

Operating

Headcount range

1–10 employees

Short description

Phyto Partners is a venture capital firm managing two sector-focused funds—a Cannabis Fund (since 2015) and a Psyche Fund (psychedelics, since 2021)—that deploy debt and equity capital into privately held companies for accredited investors.

Ownership category

akta.pro rank

Headquarters

HQ city

Boca Raton

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Others

Revenue model

1. VC Fund Management: Phyto Partners generates revenue through management fees and carried interest (performance fees) from their venture capital funds. The firm manages the Phyto Cannabis Fund and Phyto Psyche Fund, deploying capital into portfolio companies and earning returns on successful exits.
2. Portfolio Company Equity: The firm takes equity stakes in portfolio companies, generating returns through exits via M&A, public listings, or other liquidity events. Notable exits include Marijuana Doctor (2023), Skylight Health (2019), and Greenlane (2020 public listing), as well as Agrify public listing in 2019.

Pricing tiers

Go-to-market motion2 records

Distribution channels1 record

Marketing channels6 records

Core offering

Phyto Partners is a venture capital firm that manages and deploys capital from accredited investors into privately held cannabis and psychedelic companies. It operates two professionally managed funds—the Cannabis Fund (active since June 2015, with 30 portfolio companies) and the Phyto Psyche Fund (psychedelic-focused)—providing debt and equity capital, strategic support, business development, and industry network access to portfolio companies across the cannabis and emerging neurowellness value chains.

Product overview

Phyto Partners is a venture capital firm operating two distinct funds: the Cannabis Fund (launched June 2015) and the Phyto Psyche Fund (psychedelic-focused). The Cannabis Fund provides debt and equity capital to privately held cannabis companies across the value chain, including ancillary businesses in education, branded products, agriculture technology, point of sale software, and biotechnology. The Phyto Psyche Fund targets the emerging neurowellness and brain health megatrend, focusing on psychedelic therapeutics developers, research tools organizations, and ancillary support companies. Both funds offer accredited investors professionally managed vehicles for investment in these rapidly evolving regulated industries.

Differentiator

Problem solved

Functional benefit

Brands

• Phyto Psyche Fund: Psychedelic-focused venture capital fund targeting neurowellness and brain health companies
• Cannabis Fund

Products and services

• Phyto Partners Cannabis Fund A venture capital fund that provides debt and equity capital to privately held cannabis companies, offering accredited investors a professionally managed vehicle to participate in the cannabis market. Since June 2015, the fund has deployed capital into 30 distinct portfolio companies spanning the cannabis value chain.
• Phyto Psyche Fund A psychedelic-focused venture capital fund targeting early-stage operators in the neurowellness and brain health sector. The fund focuses on developers of mental health therapeutics, research tools, and ancillary companies supporting psychedelics industry growth, offering accredited investors exposure to the brain health megatrend.

Quantifiable outcome

• 30 portfolio companies funded since June 2015
• +2 more outcomes

Named customers1 record

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature2 records

Partnerships

Three partnerships are on record, tiered core.

• PolsinellicoreImplementation/ SI/ Consulting PartnerLegal counsel for fund operations, providing legal guidance on regulatory compliance and fund structure matters.
• NAV ConsultingcoreImplementation/ SI/ Consulting PartnerFund administration services handling back-office operations, NAV calculations, and investor reporting.
• Rubin and AssociatescoreImplementation/ SI/ Consulting PartnerAccounting and audit services led by Gary Rubin, CPA, providing financial reporting and compliance for fund operations.

Scale indicators5 records

Recent moves6 records

Expansion highlights4 records

Direct peers

• Casa Verde Capital: Cannabis-focused venture capital firm investing across the cannabis value chain. Directly comparable as a sector-specialist VC deploying capital into cannabis and ancillary companies, competing for similar LP and deal flow.
• Merida Capital Partners: Cannabis-focused private equity and venture capital firm. Closely comparable as a sector-dedicated fund manager with both VC and growth strategies across the cannabis industry, targeting similar portfolio construction.
• Poseidon Asset Management: Cannabis-focused hedge fund and asset manager. Directly comparable as one of the earliest institutional cannabis investment firms, also investing across the cannabis value chain with similar LP audience of accredited investors.
• Entourage Effect Capital: Cannabis-focused venture capital firm investing in ancillary, technology, and branded cannabis companies. Comparable as a sector-specialist VC with a similar thesis around ancillary and tech-enabled cannabis businesses.
• Iter Investments: Psychedelic-medicine-focused investment platform and fund manager. Highly comparable to Phyto's Psyche Fund as a dedicated psychedelic VC deploying capital into therapeutic and ancillary psychedelic companies.
• Palo Santo: Psychedelic medicine-focused venture fund. Directly comparable to Phyto Psyche as an early-stage investor in psychedelic therapeutics with similar LP audience and thesis around brain-health megatrend.
• Nosara Capital: Cannabis-focused investment firm deploying capital across public and private cannabis companies. Comparable as a specialist cannabis investment manager with diversified vehicle structures.
• Tuatara Capital: Cannabis-focused alternative investment manager with credit and equity strategies. Comparable as a regulated cannabis specialist with institutional-quality fund operations.

Broad incumbents

• Bessemer Venture Partners: Large generalist venture capital firm with selective cannabis and wellness investments. Comparable as a competing capital source for cannabis deals, though Phyto is far more specialized and deeper in the vertical.
• Founders Fund: Prominent generalist venture capital firm with thematic exposure to psychedelic and alternative health sectors. Comparable as a competitor for psychedelic deals at larger check sizes, though not a sector specialist.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights6 records

Customer concentration

• Xx.com/PartnersPhyto
• Facebookfacebook.com/phytopartners
• LinkedInlinkedin.com/company/phyto-partners

Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments31 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Phyto Partners