Weed is becoming a much bigger business in the United States.
Indeed, as more states start to legalize it, the legal cannabis industry is set to reach an impressive $30 billion by 2025.
More cannabis is being grown (and more money’s being made from it) than ever before.
Clearly, green has become the color of the day. As you can imagine, there’s never been a better time to get into the weed business.
Interested in doing exactly that but lack the funds to get going? Well, cannabis angel investors might be the answer to your problem. After all, these wealthy individuals are looking to support and profit from rising new businesses in the cannabis industry.
But where do you go to find marijuana business angel investors? Let us help you learn where to find these cannabis angel investor experts.
Read on to discover how to find investors for your new canna-business.
1. Friends and Family
You might not like the idea of turning to friends and/or family for money to help fund your hemp venture.
However, remember that this isn’t a handout. Rather than a charitable donation, their cash is an investment for which you’re offering something in return.
As your cannabis business takes off, the shares they’ve bought in your company will return more money than they initially invested.
Furthermore, you might not have a choice for funding your cannabis company!
Traditional sources of funding, such as personal bank loans, are unavailable for start-ups in the weed industry. Until a time when this becomes an option, many people are forced to turn to loved ones for financial support.
If you can swallow your pride and take this approach, then you’ll enjoy certain benefits of it. For instance, unlike traditional loans, you’re less likely to have any interest to pay off on what you borrow.
You’ll be able to repay the cash sooner and with a happier bank balance as a result.
2. Crowdfunding
Crowdfunding is another pathway available.
In fact, it’s one that’s open to any entrepreneur, and that many choose to take.
You’ve probably come across it already. However, for the benefit of anyone new to the concept, crowdfunding presents a business idea to the world and invites strangers to invest in it.
Entrepreneurs usually offer them something in return for their money. A branded t-shirt first dibs on the final product or discounted access to services, for example.
There’s nothing stopping you from taking this tack for your canna-business. Rest assured that many other people in the same boat will be doing it right now!
Set yourself up with a crowdfunding page and set about raising interest. Create a compelling reason to invest in your business, then market the campaign as widely as possible.
In time (and with a bit of luck), this can be an incredible source of canna-capital.
3. Wealthy Third-Parties
These first two suggestions have their flaws:
Firstly, not everyone has friends and family with money or the desire to invest in a cannabis business.
Secondly, there’s no guarantee of crowdfunding success.
In these situations, the next port of call could be affluent individuals. Indeed, many people with more money than they need are looking to invest in the weed industry. After all, it’s being floated as the next big thing in America.
Do your research online and on social media to find people who fit this description. If you know of some in (or not too far removed from) your personal friendship group, then ask for an introduction.
Hop on LinkedIn and send out some feelers. Create a profile, send messages to people in the industry, and proceed from there.
4. Current Dispensaries and Canna-Business Owners
This route will depend on your particular business model.
However, you might be able to find investment from people already operating in the industry. For instance, someone hoping to grow a particularly rare strain of weed could pitch to a dispensary in their neighborhood.
You could guarantee them first access to your product and wholesale prices in return for start-up capital. With a bit of luck, they’ll hear you out and fork over the cash.
Do your market research to find successful businesses that might be interested in your future weed product/service. Establish a relationship with them and there might be wiggle-room for a future B2B partnership.
If they like both you and the sound of your business model, then they might be willing to invest.
5. Specific Angel Investor Sites
Of course, actual angel investors are another source of capital to consider.
These wealthy individuals try to make more money by being early investors in the next big thing.
With the popularity of weed rising and the prevalence of canna-businesses increasing, there are now specific angel investors for the weed industry!
That’s good news for you.
However, these people will usually only invest in serious entrepreneurs.
For instance, some angel investors only offer capital to people already in business! They want to see that the model already works before handing over their cash.
At a minimum, you’ll need a business bank account, a solid business plan, and evidence of how you’ll generate revenue (and how much of it you expect to earn based on specific evidence). They may also be reluctant to work with individuals with criminal histories.
Satisfy the criteria of this nature? Then look into websites like Angel.co, as well as institutional investors such as Canna Angels, or Green Growth Investments.
On the note of professional considerations, don’t forget to buy cannabis insurance too.
You don’t want to gamble all of the hard work of finding your capital investment, only to suffer financially at the hands of industry changes or human error.
Time to Find Your Cannabis Angel Investors
Weed has never been more popular or accepted in North America.
The legalization of marijuana, coupled with the rising acceptance of it in society, is driving a boom in the weed industry. In years to come, the value of the cannabis industry is expected to see a dramatic upswing in pot product purchases.
That is good news for budding (pun intended) entrepreneurs. With mass appeal around the corner, now is a great time to get started with a marijuana business.
Unfortunately raising the capital can be a tough hurdle to overcome. Find the right cannabis angel investors though, and you’re on your way to success.
Hopefully, this post will help you do exactly that for your cannabinoids company.
Looking for more articles like this about cannabis capital? Head to the ‘Startups’ section of the website now to learn more about making marijuana money legally.
