How Do You Find Investors for Your Marijuana Project? - Family Office Pitch Contests are Perfect!
Cannabis.net got to sit down with Cannabis 10x and discuss their upcoming virtual event where cannabis startups can pitch their marijuana business idea to to over 900 investors and family offices. Right now the event has tons of investors but needs more cannabis companies to present. Why does COVID-19 present a great opportunity for cannabis companies to pitch to investors and why are family offices and private investors lining up to get a piece of the Green Rush now, as opposed to the past 12 months?
Cannabis Will End COVID Economic Crisis - Cannabis Investors Watch Live As Businesses Pitch Judges Cannabis 10x is hosting ‘The New Normal’ - a virtual live Cannabis Investor Capital Pitch Event on June 2, 2020.
The Great Depression decidedly halted the levity of the Roaring 1920’s. On March 4th, 1933, amidst the bleakest moments of the Great Depression, newly elected President Franklin D Roosevelt delivered his first inaugural address.
“First of all,” he said, “let me assert my firm belief that the only thing we have to fear is fear itself.” “... We will act swiftly to face the dark realities of the moment.”
Act swiftly he did, surreptitiously deriving a source of funding for “The New Deal”. He quietly repealed prohibition - a move that would increase federal revenue by 9% with the stealthy tax. Covid-19 forcibly halted the optimism of the Roaring 2020’s. Billionaire, Ray Dalio, pointed out the elephant in the room on a recent virtual Ted Talk, confidently stating that the US is “Heading into a great depression...”
“This is not a recession; this is a breakdown. You’re seeing the same thing that happened in the 1930’s”.
Is it conceivable that history does indeed repeat itself? If so, perhaps the next series of events will culminate with the government funding the Covid-19 economic recovery with tax revenue derived from the federal legalization of cannabis. Cannabis ‘Thought-Leader’, Jason Tropf is the Founder of the first global “Cannabis Only” business brokerage. He believes that legalization is imminent:
“I believe that generational legacy wealth will be created during the birth of this new industry.”
Cannabis 10x creates wealth in the space for business owners and cannabis investors via the means of 1. Expanding businesses with Capital Raises or Franchising. 2. Assisting businesses with strategic partnerships, exit strategy planning and the ultimate exit of the business. 3.Creating cannabis investment portfolios, buyer representation, and platform creation.
Visionary, best-selling author, and founder of Zarian Firm, Holly A Ford partnered with Tropf in 2019 to continue his vanguard vision for the business.
“Most assuredly, Covid-19, has fundamentally altered history, leaving Cannabis, in its wake, a monumental opportunity for investors.”
In creating portfolios for cannabis investors, Cannabis 10X feels that smaller investments in multiple businesses along the supply chain is a stronger position than a larger investment in one vertically integrated company. Tropf and Ford assert that there are four fundamental cannabis investment segments for investors: B2B Investments, Franchise Investments, Pre-Revenue Investments, and B2C Investments.
B2B cannabis investment concepts are businesses hallmarked by more stability and predictability. Customer loyalty is strong, and customer acquisition is faster and far less expensive. Cannabis Investors in this segment should ideally be passive or with industry experience as there is more complexity in the B2B model. Franchises have the unique position to exponentially grow. The return on these concepts are far higher than can be gained on one business alone. Ford, a franchise industry leader, emphasizes:
“This is a virtually unknown and poorly understood investment. Cannabis Investors can throw a half million at one of these pre-revenue franchises for a mere half % top line royalty, and, with conservative growth, earn an absolutely inconceivable return on investment.”
Pre-Revenue businesses offer cannabis investors the unique opportunity to potentially have a very high level of return. Additionally, the opportunity often presents that allows cannabis investors with strong business acumen, to have influence on the direction and pivotal decisions of the new company. Tropf states that this is the proverbial dice throw with high stakes but high return:
“With an experienced team, strong branding, and one or more Unique Selling Propositions, Pre-Revenue cannabis investments will prove to be high-yield investments”.
Business to Consumer concepts typically have a faster transaction cycle, lower cost of doing business, and an easy to define sales cycle. This simplicity, over B2B businesses, gives cannabis investors easier benchmarks, and often faster returns. Ford advises:
“The present atmosphere is extremely volatile. Perhaps the power behind the prolific enticement. Cannabis investors must protect themselves by creating a portfolio of investments in the four fundamental segments.”
After cannabis investors fund their foundation, they can begin creating platforms, investing in seed-round technology concepts, and developing multi-unit brands. Investors should always keep the right optics on their investments. Although this industry is in its infancy, there are still businesses that are on respirators. It is essential to have advisors that know which can be resuscitated for great returns and which to avoid.
The Cannabis 10X Capital Pitch Event on June 2nd will prove to be a new, decidedly engaging approach for capital raises. With a little thematic fun, the 10x team adds the element of the roaring 20’s and high-end cinema for the virtual audience to interact with. Each “Act” consists of an educational session and one of the four fundamental segments where 4 businesses pitch their concept to a seasoned panel of cannabis investors. Each business has 4 minutes to pitch followed by a fast-paced q&a with the investors. Without question, we are poised guileless on the stage of one of history’s climatic moments. What role will you play?? First 100 attendees get in free with promo code: VIP100
Want to pitch your idea to over 900 investors and family offices, click here!
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