As #cannabis becomes increasingly legalized across the United States, many entrepreneurs are looking to start their own cannabis-based businesses. However, one of the biggest challenges facing these entrepreneurs is finding the #funding to get their businesses off the ground.
Banks are largely unwilling to lend money to cannabis businesses due to the drug's Schedule I classification, which means that they could be subject to prosecution by the federal government. This leaves cannabis entrepreneurs with few options when it comes to traditional financing.
Cannabis businesses can try to secure funding from private investors, but this can be difficult because many investors still view the industry as high risk. Additionally, most venture capitalists are based in states where cannabis is not yet legal, so they may be reluctant to invest in a cannabis business that is only operating in one state.
One option for cannabis businesses looking for funding is to seek out grant money from organizations that support the industry. The National Cannabis Industry Association offers grants of up to $5,000 to help cannabis businesses with start-up costs, and other organizations like the Arcview Group also offer grant programs for cannabis businesses.
Cannabis businesses can also look into crowdfunding as a means of raising funds. Sites like Crowdrise and Kickstarter offer opportunities for cannabis businesses to solicit donations from the general public. However, it is important to note that most crowdfunding platforms do not allow businesses to offer equity in exchange for funding, so cannabis businesses will need to be creative in what they offer donors as incentives.
Ultimately, raising money for a cannabis business can be challenging, but there are a number of options available to entrepreneurs who are willing to think outside the box. By taking advantage of grant programs, crowdfunding, and private investors, cannabis businesses can get the funding they need to get started.
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00:58 Who is Cannabis Industry Lawyer
02:53 types of funding for you company
04:18 how debt makes a company more profitable
06:20 Self Funding
07:48 Debt Markets
10:38 Equity Options for Funding
14:08 Conclusion Part I
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