News & Articles

Investing in a startup is a risky proposition and the due diligence process helps to mitigate risks. Let's review a few basic steps in the process. Essentially due diligence is (1) discovery, (2) analysis, and (3) drawing conclusions. 

Ohio Legalized Medical Marijuana:

The nation's 7th largest state, Ohio, just legalized medical marijuana. Not only did they legalize it, they legalized it through the legislature, not a referendum, and the law includes a number of conditions important to widespread patient adoption.

"Twenty-one ailments are included in the broad list of qualifying conditions, ranging from chronic pain to cancer to post-traumatic stress disorder to glaucoma. The inclusion of chronic pain is important, as it can help boost patient numbers dramatically." Marijuana Business Daily

Angel investing in the cannabis sector requires research, focus, and discipline. One of the first steps is identifying specific areas of the industry that fit your investor profile.

Continued from last week: Beware the Regulators...Not the Sheriff

Current Status

Government regulation is the linchpin for state actions changing the legal status of the cannabis industry from a criminal environment into a legal environment. Whether for medical or recreational use, state and local government regulators and regulations will define the geography for cannabis businesses.

This factor should be included as an important focal point in any cannabis related business’s strategic planning. An important aspect of government regulation of commercial cannabis activity is the fact that it is a relatively new area for state and local legislators and regulators:

Cannabis investing can be a challenging endeavor. Complex regulations, banking considerations, legalization initiatives, and a rapidly evolving consumer market are just some of the unique problems facing investors.