Cannabis Investment Groups

How to Find an Investor for Your Cannabis Business

Accessing capital is the average cannabis business’s most common hurdle.

Federal laws make traditional loans and fundraising efforts a huge challenge. That’s why most cannabis businesses work with investors to obtain financial support.

Why is it important to find a cannabis investor?

Running a cannabis business is expensive. You pay for licensing, your facility’s rent, your staff’s salary, legal fees, and more. Investors can alleviate some of the financial burden.

Many investors offer input about how the business is run, giving you access to some of the brightest minds in cannabis. A skilled support system is crucial to your success. The cannabis industry is unlike any other and requires specific knowledge your investor might have.

Unlike loans, you don’t pay an investor back in installments. Investors are paid once your business is making money and they receive a return on their investment in you.

What to look for in a cannabis investor:

Your investor should have experience with cannabis businesses. It’s important to ask potential investors about their history working with businesses like yours.

You might determine what additional resources they have in place to propel your business forward. That could be a network, access to other high-level companies, and other benefits.

Here are some questions to ask:

• What will a relationship between my business and your investors look like?
• What in-house services do you offer companies in your portfolio?
• How would you describe your risk tolerance?
• What is the size of your fund and when was it raised?
• What is your typical investment size?
• Can you give me a recent example of how you supported one of your portfolio companies?

To start your investor search, view Ganjapreneur’s list of investors and capital networks. Ganjapreneur has not worked with each investor directly, but each business is active and offers services to the cannabis industry.

We recommend connecting with multiple investors on this list before choosing the right one for you.