Become A Featured Company

Guide to Finding Cannabis Investors

Jason Mueller

August 15th, 2017

Policy

young asian entrepreneur presenting business plan for new project with the audience taking picture with cellphones.

In 2016 alone, US cannabis sales totaled $6.7 billion according for Forbes. Expected in under ten years of growth, Bloomberg published that the cannabis industry is expected to reach $50 billion by 2026.  To put these figures into perspective, recreational legalization of cannabis in Colorado, the quickest State to implement their recreational cannabis legislation, was adopted across the State by April, 2016.  Though voted for in 2012, implementation was not State-wide until the same year that the emerging industry posted a $6.7 billion net worth.  As the cannabis industry thrives in its infancy, getting a canna-business funded may not be easy, but there are options including Angel Investors, Venture Capital firms, and even cannabis-specific funding sites like ArcView.

Angel Investors were the “original” funders of cannabis ventures.  An Angel Investor is a single investor with significant holdings, allowing them the option to fund start-ups that they believe will succeed for a piece of the company or other repayment term.  Due to the federal laws outlawing cannabis, the first cannabis companies in the legal CA medical industry were unable to procure bank loans or lines of credit, (as a matter of fact, most still cannot).  In the absence of cannabis-focused VC’s and the inability to get funding through banks, Angel Investors that were interested in the emerging cannabis market were all that was left.  Regardless of difficulty getting funded elsewhere, private speculation and wealth ultimately propelled companies like Privateer Holdings and CannaFundr.

To find Angel Investors for your cannabis start-up company, https://angel.co is a list of Angel investors where entrepreneurs and Angel Investors come together.  Membership is free and beyond just finding funding from an Angel here, there are also members searching for start-up jobs:  feasibly, you can source your funding and your work force all through https://angel.co!  Mentioned earlier, Cannafundr is a company grown out of private investors and its mission is to crowdfund cannabis start-ups through accredited investors.  They have no membership fee, unlike most investment funds.  Their minimum funding amount is a mere $2,500 comparative to the $50,000 required by investment funds.  For smaller start-up businesses, this platform could be a quicker route to funding than either Angel Investors or Venture Capital firms.

Venture capital firms and Venture Capitalists are often mistakenly referred to as Angel Investors; they are distinctly different though, and it may be tougher to secure funds from a VC than an Angel Investor when it comes to a cannabis business.  At its core, the difference between Angel Investors and Venture Capital firms is that Angel Investors are individuals who are the stewards of their own money.  Angel Investors have the first and final say in whether they fund you.  A Venture Capital firm, however, can be structured several ways:  they may have a board of trustees that make decisions or perhaps a CEO that must clear potential investments when Venture Capitalists tentatively approve a start-up for funding.  Another major difference between VC’s and Angels is that a Venture Capital firm typically handles funding in excess of $1 million whereas Angel Investors typically will only fund up to $1 million.  Some examples of cannabis-friendly VC firms include Emerald Ocean, Dutchess Capital, Salveo Capital, and Tress Capital.  At each of these companies’ sites, anyone interested in pitching their start-up has ready access to decision makers within their respective firms.  Keep the scope of your start-up in mind when determining if pitching to a VC firm is worth your time:  if you aren’t looking at a $1 million or more project with significant return and little risk, you are better off pitching to Angel Investors until you find one that takes interest in your company.

Despite most VC firms dealing only with high budget start-ups, the ArcView Group is one VC firm that deals in smaller funding amounts than $1 million.  They only accept accredited investors into their network, which currently is made up of 600 investors.  According to their site, The ArcView Group has facilitated funding for over 150 companies which raised around $125 million in totality.  A few times weekly, they offer webinars where companies can pitch their start-up and they also have a grand event every quarter where entrepreneurs can pitch their ideas in-person.  Testimonials on ArcView’s site give a better picture of what funding amounts start-ups can expect.

“The ArcView group gave us an opportunity to pitch our company to top-tier investors and raise $150,000.” ~Isaac Dietrich

“We have secured $350,000 of the $500,000 we came to ArcView for and we will be closing out very soon based on meetings this week.” ~Garett Fortune

For start-ups that haven’t had luck with any Angel Investors but are scaled too small to effectively pitch most Venture Capital firms, ArcView Group has done great things, and their reputation becomes more renowned with each funded start-up they launch.

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Jason Mueller

Network Partners

Follow Us on Social Media

LinkedIn

About CFN Media Group

CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.

Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.

Copyright © Accelerize Inc. · All Rights Reserved · Privacy Policy · Legal Disclaimer

loading