The 3 Biggest Funds in Cannabis (and the Secret Funding Cannabis Founders Are Using To Fight Back)
It’s like playing a game with the deck stacked against you. And, for that reason, most play the cannabis game; the odds aren’t in your favor unless you’re the chip leader…at least, until now.
3 Most Common Paths To Cannabis Funding:
- VC Funded — Big Money from outside investors.
- Trap Funded — Licensed operations that fundraised using the legacy marker. (No longer an option with the price of pounds)
- Trust Funded — Funds unrelated to business viability or plan; often self-funded using finances that were not directly earned by founder(s).
This is also why people look at you 1 of 3 ways when you say you have a license in cannabis.
What many don’t realize is possible is crowdfunding, and that it’s one of the better ways you can get involved in cannabis financially (at least compared to the dismal returns of publicly-traded penny stocks).
Last week, Chris Becker (@chris_honeybee) shattered my cannabis funding worldview by sharing his process for crowdfunding a licensed cannabis brand in Colorado’s legal market.
Since then, the apparent barrier to entry — even in a mature market like Colorado — feels achievable, approachable, even attainable, for the little guys.
If you had full funding to start a business in cannabis, what vertical would you choose and why?
