Regardless of the business you are starting, raising the funds you and your partners need to start and expand your business is always a challenge. Entrepreneurs in the cannabis space are no different. In fact, new cannabis businesses face additional obstacles in raising capital.
Plant touching businesses face 280E tax restrictions, banking obstacles, and regulatory barriers that can make raising capital more costly and complex. New entrepreneurs can find the world of fundraising daunting. Longtime successful legacy operators need to change their mindset and expand their skillset to compete in the new legal marketplace.
How do you set a valuation on a company that has no revenue? How much equity should you give to investors? Is a SAFE Note the right instrument for your SEED round? Do you need an investor deck and what should be in it?
Before investors will part with their cash to invest in a cannabis business, they are going to have tough questions. You need to understand the vocabulary and world of investors and venture capital if you are to open the doors to your new cannabis business and have enough runway to get to profitability or to raise another round.
Whether you are raising your seed round to open a dispensary in your local community or heading into your Series A for the seed to sale SAAS company you and your partners built from scratch on the weekends, knowing the ins and outs of fundraising is a must. Arcview and Oaksterdam University have teamed together to create an online collaborative experience to help guide you through the complexities of fundraising in the cannabis industry.
For more information check out Raising Funds for Cannabis Businesses at Oaksterdam
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