Marijuana Investment Opportunities
Some current operations may not have the business background, knowledge and experience to be successful in this emerging industry – but as an investor, would you know? The marijuana industry is so new there may not be a strong enough track record to really evaluate an investment opportunity.
And, it can be challenging to invest in businesses that are not publicly traded and may not have any reliable financial statements. The background data that a prudent investor would want just may not be available.
There’s a lot of opportunity for investing in the marijuana industry, and early adopters are jumping in…. but how do you know if the opportunity is sound? Can you spot inefficiencies in operational practices? Do you know if the business is fully compliant? Are you aware of the investor limitations or requirements of the state?
Who we are: Canna Advisors has been operating in this space since 2009 and not only has first-hand knowledge of the industry, but also participates in multiple national organizations that are on the ground floor of influencing policy and standards. Our principals are founding members of the National Cannabis Industry Association, a founding member of Women Grow, lifetime members and selection committee members of the ArcView Investment Group, mentors for Canopy Boulder, sustaining members of Americans for Safe Access, an Advisory Board member of New West Genetics and sustaining members of Students for Sensible Drug Policy.
It takes time to get marijuana start-ups running and scaled to grow, so you need to be realistic about the promise of fast returns. Getting the right information and partnering with an experienced team makes all the difference in your long-term investment success in the cannabis industry.
How to Invest in the Marijuana Industry
Just as the Gold Rush created millionaires of those who sold supplies and food to the miners, the ancillary businesses in the cannabis industry are poised to do very well without the risk of marijuana market/price variations, changes in regulations or crop yields.
Investing in technology, automation, marijuana-focused accounting, recruiting or security products…even eco-friendly packaging and product delivery methods such as vaporizers, is the next phase of development in this industry. First came the product itself, and now ancillary businesses are developing to support its growth. The next stage will be a complete system of related services as legalization expands and regulations mature.
Future Projections of Growth
Legal sales of marijuana reached $2.7 billion in 2014, from $1.5 billion the year before, according to the ArcView Group, an investment and research firm focused on cannabis. In addition to the phenomenal growth already demonstrated, there is also a bipartisan effort to remove federal restrictions on medical marijuana in the states where it is currently sold. “There is going to be a massive, massive market,” says Troy Dayton, CEO of ArcView.
The industry is quickly becoming a complex, growing market. Technical advances in lighting and cultivation systems are being implemented and improved data analysis from seed-to-sale will offer further credibility for investors. Medical and biotech companies are investigating the various cannabinoid strains that may benefit glaucoma, diabetes and epilepsy, which are in turn, drawing in larger financial and commercial investors.
How Canna Advisors can help: Canna Advisors works with investors all over the world to advise on how to invest in the cannabis industry, helping to vet potential partners and facilitating connections in lesser-known areas. We can assist in evaluating risk levels and perform extensive interviews for ancillary businesses. Through our associations with national organizations and mentoring programs, we are happy to provide introductions to those who can share the insights and detailed information you need to invest wisely.