Our premier CPA firm provides expertise in a wide range of areas within the cannabis industry. We can help you make sure your cannabis business is set up to succeed from the get-go.
We can provide consultation and advice in a variety of subjects:
Attract the right funds and additional partners for your business is vital. Investors may be intrigued by the cannabis industry, but its newness may create a level of risk that turns away funders. In addition, cannabis businesses are a bit more capital intensive than most, with estimations of $50,000-$65,000 in start-up expenses.
Broadly speaking, there are two ways to get capital for a new business: debt and equity.
Though there aren’t many traditional funding sources open to a cannabis business, crowdfunding is still an option. The SEC allows anyone to invest $2,000 in small businesses in exchange for a stake. Companies can raise up to $1 million through crowdfunding sources. Check out Fundanna, CannaFundr, and 420fundme.
Traditional banks often can’t offer your cannabis business a loan, but there are other investors who will invest if you can show a solid ROI (return on investment). These general rules will help your chances:
Look for venture capital funds that are familiar with the industry. Research Privateer Holdings, which has raised more than $100M to fund legal marijuana businesses. Others include Tuatara Capital, MedMen Capital, and Snoop Dogg’s Casa Verde.
Online loan companies have an easier time lending than traditional banks. Do some research to see if an online loan company can legally extend a loan to a cannabis company (as regulations will vary by state). Online loans often have an easier application process, lower interest rates, and higher approval rates.