Entrepreneurship is hard. Entrepreneurship in the cannabis industry, a new industry rapidly changing on a daily basis, is even harder. Funding sources are different than traditional industry, valuations are a big issue and, due to federal prohibition, banking is might we say - challenged.
So you’re starting a company. Hopefully, you’ve honed your idea, done the market research and assembled the right team. You’re on your way
As investors in the cannabis industry, we get asked by entrepreneurs about what options they have when looking for funding and how, if at all, those options differ because of that whole federally illegal, brand-new industry thing.
The relationship between start-up and investor is a special one. Investors provide much needed capital to young companies and, often, seasoned guidance toward their development. Choosing not only the right type of funding, but also the right financial partner is critical to success. But how do you know if you’ve found your financial soul-mate or a dud?