Marijuana Business Magazine September 2018

MONEY MATTERS ¬nvesting & Finance ¬nsight Q&A with the co-founder and managing partner of Merida Capital Partners Mitch Baruchowitz F or nearly two decades, Mitch Baruchowitz spent his time as a corporate attorney who helped growing companies stay compliant within the ever-chang- ing regulatory landscape. In the past decade, Baruchowitz leveraged that legal and financial acumen to help a host of cannabis firms launch and grow. A co-founder of licensed cultivation and dispensary firms in Colorado, Connecticut and Maryland, Baruchowitz is also managing partner at New York-based Merida Capital Partners, a private equity cannabis invest- ment fund. This year, the fund passed $50 million in assets under management, with many of its investments targeting ancillary cannabis firms focused on tech, data and prod- uct solutions, including: • Kush Bottles, a supplier of cannabis packaging. • New Frontier Data, a marijuana data-analytics firm. • Simplifya, a tech platform that helps MJ businesses comply with industry regulations. • Steep Hill Labs, a marijuana testing company. Marijuana Business Magazine spoke with Baruchowitz to get his investing insights. By Lisa Bernard-Kuhn Q What’s the best cannabis investment you’ve made, and why? A All of them have made incredible strides since our investment. One of our investments has grown from $4 million to a projected $37 million this year. Another will do more than $50 million in revenue in 2018. Most have posted 100% revenue gains for two or three straight years and turned profitable. More broadly speaking, the best investment Merida has made is in our team, which now sits at nine full- time employees. We built as strong and professional a team as early in our existence as possible, so we could dig deeper on diligence, support our portfo- lio in the engaged manner that is our trademark and give them all the governance and corporate resources their opportunities deserve. Q What attracted you to these companies/ opportunities? A They all have core aspects that we look for in our opportunities: • Large addressable verticals. 12 • Marijuana Business Magazine • September 2018