Investment Criteria for Cannabis Financing | Alta Pete VC

APVC Investment Criteria

 

We start with one question: how do we get repaid?

Alta Pete Venture Capital is a fund platform under formation providing asset-backed and revenue-based financing to cannabis operators where structured capital and disciplined underwriting support a clear and identifiable path to repayment.

APVC is a vertically integrated cannabis capital platform spanning origination, structured credit, refinancing, and equity investment across regulated U.S. markets.

Investment Thesis

We focus on established cannabis operators where capital scarcity, regulatory barriers, and fragmented lending markets create opportunities for structure-driven financing.

Typical Investment Profile

We invest $1M–$10M into cannabis operators generating approximately $750K–$10M in annual revenue, structured across 18–36 month investment horizons, with potential equity participation depending on strategy and structure.

Investment Parameters

  • Investment Size: $1M–$10M
  • Revenue Range: $750K–$10M
  • Duration: 18–36 months
  • Structure: Asset-backed and revenue-based financing
  • Target Return Profile: 12–18% annualized yield + equity participation

What We Look For

  • Revenue-generating cannabis operators in regulated U.S. markets
  • Demonstrated and consistent demand
  • Clear visibility into cash flow and debt service capacity
  • Identifiable assets or revenue streams for collateral structuring
  • Management teams with operational discipline and execution focus

What We Avoid

  • Pre-revenue or concept-stage companies
  • Transactions under $750K
  • Pure equity capital raises without cash flow support
  • Businesses without a clearly identifiable repayment pathway

Our Approach

We underwrite cash flow rather than projections and structure financings around tangible assets, contractual revenue visibility, and downside protection.

Capital preservation is the first priority. Equity participation is earned through performance, not assumed at entry.

Platform Overview

APVC originates, structures, and deploys capital across the cannabis capital stack through three distinct strategies aligned to borrower stage, risk profile, and capital need:

  • Structured Credit (Growth Capital)
  • Refinancing Credit (Capital Optimization)
  • Structured Equity (Long-Term Value Creation)

Where transactions fall outside internal fund mandates, APVC leverages a nationwide network of institutional lenders and capital partners to support financings from $1MM to $100MM+, subject to structure, collateral, and credit profile.

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