How to Raise Cannabis Venture Capital
For cannabis companies seeking capital, these five R's are essential.
Image credit: Karl Gehring | Getty Images
CEO & Founder Bonaventure Equity, LLC
December 11, 2019 12 min read
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Raising capital is one of the most complex, frustrating, and time-consuming challenges facing founders in any industry. It is also one of the most critical functions of a high-performing leadership team made even more challenging given the complicated and dynamic regulatory considerations in the cannabis industry. There is no one guaranteed way to succeed in soliciting investment, but after doing private transactions for more than a decade, I’ve found that success is in part a result of a cohesive strategy and a sustained, multifaceted approach that can be summarized with the following five principles.
Investing in private companies comes down to the people involved, and the ideal situation would be that you have a group of investors with whom you are a known person with a track record of success. Although this is one of the things that takes time to develop, we all have to start somewhere. Expanding your network should be a constant activity, and you should always be ready to ask anyone you meet if they are an investor or know an investor to whom they can introduce you.