It’s no secret that the cannabis industry is on the rise. After producing nearly $7 million in 2016 and making strides on the legalization front, the cannabis industry has begun to attract more mainstream investors than ever before.
Investing in cannabis has proved to be nearly limitless. The industry’s growth means that traditional cannabis products, edibles, exotic strains and extracts are great opportunities for investors, but so are less traditional outlets, like skin care products, clothing, and jewelry.
Though big name investors have now come calling and new investment firms are establishing themselves in the industry, investing in cannabis has not always been as easy or attractive as it is today.
For CW Hemp, the exclusive producer of Charlotte’s Web and a Colorado-based cannabis company, finding investors to trust the business and the process was tricky, but worthwhile.
“We’ve built one of the strongest marijuana brands in the world, and we’ve done it with less than $4 million in total outside capital, with the majority of that money coming from Florida-based investors who wanted to feel good about what they were doing with their money,” said Joel Stanley, CEO of CW Hemp.
Bonita “Bo” Money is another entrepreneur in the cannabis space who had to make personal sacrifices to get her business up and running. One of the few women of color in the industry and the founder of the cannabis networking organization Women Abuv Ground, Money put up a large sum of her own funds and worked diligently to find dedicated, trusting investors to bring her cannabis vision to life.
Thanks to the cannabis industry’s unprecedented success, however, these personal funding efforts and tireless searches for reliable investors have paid off for many companies in the industry. MedMen, a leading cannabis firm based in Los Angeles, has achieved nationwide exposure after years of hard work.
“Everything at MedMen has been earned,” said Co-founder and CEO, Adam Bierman. “When we started out, there weren’t any large-scale cannabis investment firms in operation. MedMen is primarily self-funded, and we did receive some early capital from a wealthy family in Florida who believed in our mission and wanted to be a part of the industry.”
Like many companies, MedMen is growing as the industry grows and changing right along with it.
“We’re still breaking new ground every day in an industry that’s just starting to truly explode, so the fact that we did what we did with no major capital infusion at the beginning, I’m very proud and excited for the future,” Bierman added.
Along with CW Hemp, MedMen, and community-building initiatives, like Women Abuv Ground, the ArcView Group has been instrumental in bringing funding into the cannabis industry. Having raised over $100 million and supporting around 130 companies, the investor network and research group is now one of the most prominent names in cannabis.
Other important players are the start-up companies that rely on personal investments to launch their unique, local businesses. From cannabis oils and drinks, to clothing and accessories, and high-end vaporizers, start-ups are drawing in investors with very specific interests and strengthening their belief in the industry’s potential.
The cannabis industry has benefitted from new, progressive legislation and the key players that have continued to work hard in building the industry from the ground up. Entrepreneurs, investors, and supporters alike are incredibly excited for the industry’s progress in 2017, sure to surpass last year’s impressive figures.