Marijuana executives seeking to raise capital are often in the dark about what investors look for in potential investments.
MJBizMagazine mined the minds of some of the most prolific cannabis investors to learn what traits attract them to specific companies.
Their answers reveal a lot about why some businesses succeed in landing investor capital and others don’t. Some factors included:
- Solid leadership and long-term solutions.
- Barriers to entry and leaders wise enough to step down.
- Melding legacy cannabis experience with Wall Street smarts.
- Management teams that can show thorough research.
- Leaders who surround themselves with talent and experience.
- Mutually beneficial deal structures.
- Vertical integration and the ability to grow high-end indoor flower.
Investor views weren’t uniform. But these concerns can help marijuana executives better understand their own companies – and help them hone their pitches to match investor objectives and maximize the likelihood of funding.