News & Articles

Timing Is Everything In Frontier Markets

Posted by Micah Tapman on Apr 27, 2018 10:49:57 AM

The Marine Corps has a saying that goes something like this – it’s more important to make a decision at the right time than it is to make the right decision. The reason for this is simply that the pace of military operations requires decisions to be made quickly despite uncertainty. Delaying, even for what seems like a good reason, is more problematic than making an incorrect decision. Investing decisions are also more sensitive to time than to being right or wrong. In other words, it’s better to be in a bull market than to miss it because you couldn’t make a decision on where to invest.

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Topics: Investing, cannabis business, cannabis investing, frontier markets

Canopy Accelerator Invests $1,000,000 in Cannabis Tech Startups in 2017

Posted by Meghan Grabow on Jul 31, 2017 7:01:00 AM
Marijuana business accelerator and venture fund launches seventh cohort of cannabis tech companies

Canopy, a venture fund and business accelerator for companies developing ancillary products and services for the legal cannabis industry, is pleased to announce the launch of its Fall 2017 class in Boulder, Colorado. Eight startups are taking part in the 16-week accelerator program, with businesses including a cloud-based quality management tool for multi-state operators, an integrated agriculture technology hardware service, and an enterprise software platform that helps cannabis businesses manage and mine their online reviews. CanopyBoulder has committed $240,000 to this Fall 2017 cohort alone.

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Topics: Entrepreneurship, Investing, cannabis companies

Thank You to Nick Moran & The Full Ratchet

Posted by Micah Tapman on Jun 29, 2017 5:12:46 PM

Can't say enough about the quality of Nick's work with the Full Ratchet podcast (website, iTunes). Driving from Boulder to Aspen and back down was made infinitely more interesting when I discovered the podcast and hammered through a dozen episodes. Learned some new stuff, reminded of some old stuff, and enjoyed the professional, thoughtful, and disciplined approach.

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Topics: Entrepreneurship, Investing

The Basics Of Investing In Cannabis.

Posted by Meghan Grabow on Apr 25, 2017 10:39:00 AM

"Marijuana, known otherwise as cannabis, (or more accurately, cannabis sativa or cannabis indica) is a naturally occurring plant that produces a wide variety of chemicals impacting people in a myriad of ways. Most of us know the most common impact – 'getting high,' as well as a few of the others, getting hungry, feeling relaxed, or becoming tired. But here's another we can add to the list: getting rich."

Last Thursday, we celebrated 4/20. Each year, the day's acknowledgment becomes more mainstream, with big brands such as Red Bull and Uber becoming visibly involved in the festivities. That consumer brands are becoming more willing to associate themselves with cannabis is no coincidence; it's symbolic of the industry's promise. At a base level, it's about money. These brands are making investments, banking on increased legalization and increased opportunity. And serious investors are certainly taking notice of investment opportunities in this market as well.

Canopy Managing Director Micah Tapman marked the holiday with an op-ed piece featured on CNBC, providing the basics around marijuana investment strategy. We've summarized the piece into four tenets:

1. First, avoid publicly traded marijuana companies (they're all over-the-counter) such as Medbox (OTC:NGBL) which ended up settling with the SEC for securities fraud. There are very few solid businesses in the space and finding the right one to invest in is extremely difficult. Your best bet is to invest in privately-held companies, which means you need to be an accredited investor, per SEC guidelines.

2. Second, look for companies with solid management teams teams. Yes, this is somewhat obvious, but it's particularly important in a community where "stoners" are still rampant. If someone is getting high at a meeting, that can ruin negotiations and negatively impact the company.

3. Avoid interacting directly with cannabis to side step a lot of risk. A smarter way is to find ancillary companies such as IoT technology firms, business intelligence solutions and next generation marketing platforms that provide the tools to help grow and distribute the plant. Examples include Flowhub, an innovative software company servicing cannabis businesses, Front Range Biosciences, which helps research the cannabis plant, and BDS Analytics, the industry's authoritative market research firm.

4. The last factor to consider when investing in the cannabis industry is the navigation of state-by-state intricacies. Market characteristics include open or closed regulatory frameworks, population size and demographic diversity, urban versus rural distributions, and even seasonality. Franchises or other licensing-type arrangements may be manageable but we predict many entities will stay focused on just one or two states for the next few years while the industry matures and the supply chain evolves.

Tapman concludes with this:

"So again, play it safe and focus on the services and technologies that empower and facilitate the success of these new cannabis companies. As the industry grows, so will the need for these products and services regardless of specific regulatory hurdles."

Read the entire Op-Ed piece on CNBC.com.

 

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Topics: Company Info, Investing

Canopy™ Announces Demo Days & Investor Events for Spring 2017 Business Accelerator Cohort

Posted by Meghan Grabow on Apr 24, 2017 9:00:00 AM
       

Canopy™ Announces Demo Days & Investor Events for Spring 2017 Business Accelerator Cohort

BOULDER, CO, April 20, 2017 – Canopy, a venture fund and business accelerator for companies developing ancillary products and services for the legal cannabis industry, is pleased to announce multiple events for investors and the public to mark the graduation of its Spring 2017 accelerator program cohort.

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Topics: Entrepreneurship, Investing, events

Trump and the Cannabis Industry - Summary Thoughts for Investors & Entrepreneurs

Posted by Patrick Rea on Apr 6, 2017 2:10:00 PM

 

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Topics: Entrepreneurship, Investing