Chances are if you are reading this article, you either are a cannabis entrepreneur, or you are aspiring to be one. Almost everyone I know right now fits that description. I know a lot of people, and get e-mails from even more people, that are all trying to figure out an angle to make it big in the cannabis industry. Some have services they would like to offer. Some have apps. Others have inventions. There are of course many people that want to grow and/or sell marijuana. Virtually all of them have a common factor - they need an investor to get their idea off the ground.
I have talked to a lot of investors over the years, some inquiring about investing in The Weed Blog, and others just trying to pick my brain about ideas they are considering. If I have the time, I always try to put in my two cents because I think there are a lot of swindlers out there in the industry, and I try to steer people in the right direction to help out everyone involved as time allows. If there's one thing that I know about investors, it's that they don't make decisions on a whim. They want facts, they want details, and they want to see a polished vision with some serious potential (at least smart ones do!).
There is a company out there that has been raising a lot of capital to invest in the marijuana industry. The company is called Tuatara Capital, and they are based out of New York. The first time that I heard about them was via an article on Marijuana Business Daily's site. The article described how the company raised almost $26 million in a very short amount of time. Per Marijuana Business Daily:
According to the SEC filing, Tuatara Capital raised a total of $25.75 million from 51 separate investors. The firm used $400,000 of that as compensation for company executives.
Though no one at the firm could be reached for comment, rumors have been swirling in industry circles that the company is aiming to raise $100 million to invest in cannabis businesses.
That's not an unrealistic goal, said two New York industry observers.
"For them to raise $25 million, that's a no-brainer," said Jerome Dewald, the president and CEO of JWD&A Holdings, an investment firm that is active in the cannabis industry. "For them to raise $100 million, absolutely doable. For them to raise $500 million, I'd bet my last investment dollar that they could do it."
Matt Karnes, a former Wall Street equity analyst and managing partner at financial analysis firm GreenWave Advisors, predicted that Tuatara's team would be able to reach $100 million "pretty easily."
"It's challenging for everybody in the industry, but if anybody's going to do it, it's going to be them," Karnes said. "They're really smart guys."
I don't know a lot about the company other than that they have deep pockets, and that they could soon be the largest investor in the cannabis industry. Their CIO Al Foreman is going to be speaking at the upcoming 2015 Fall Regional Cannabis Business Summit hosted by the National Cannabis Industry Association. If you are looking to learn more about getting a cannabis investor, or finding out how to best invest in the cannabis industry, hearing Al Foreman speak will be a great learning opportunity. I'm sure there are many, many people out there that fit that description. Al Foreman and his company are very heavy hitters, and if you are trying to get serious about cannabis industry funding, you would be hard pressed to find someone better to listen to than Al foreman. In addition to Mr. Foreman, there will be dozens of other top industry speakers at the event, all of which have an intimate knowledge of the region's cannabis industry and regulations. The event is likely to sell out, so get your tickets sooner rather than later.
About the National Cannabis Industry Association
NCIA is the only national trade association advancing the interests of the legitimate and responsible cannabis industry. Our industry supports tens of thousands of jobs, tens of millions in tax revenue, and billions in economic activity in the United States. NCIA is leading the unified and coordinated campaign to ensure this emerging sector is treated fairly under federal law.