The Cannabis Industry is Attracting Mainstream Investors
Los Angeles cannabis business lawyers have been helping marijuana entrepreneurs to build thriving, professional businesses for a long time in places like California where marijuana businesses are permitted. Now, more states are allowing recreational and medicinal marijuana, public perceptions of marijuana legalization have shifted so more people are now in support of it, and cannabis businesses are rapidly expanding throughout the United States.
The shift in the politics surrounding cannabis, plus the success of existing marijuana businesses, has many experts talking up the rapidly growing marijuana industry as an industry with huge potential for growth. As Variety explains, this is prompting mainstream investors to sit up and take notice – and many are responding with substantial financial investments.
More Mainstream Investors are Putting Money into Cannabis Companies
The cannabis industry, like the movie industry, has long attracted investors who were willing to take big risks to potentially earn huge potential returns. With $6.9 billion in sales generated by the legal cannabis industry in 2016 alone, the market is expanding beyond these high-risk early investors. This sales number reflects a 34 percent increase in sales generated since 2015, and there is every reason to suspect growth will continue to rapidly increase.
Investors have a wide variety of different investment opportunities if they want to cash in on the marijuana industry. Concentrated edibles, topical creams with CBD extracts, and exotic strains of marijuana are just some of the many products investors can take a chance on backing as new products are introduced into the cannabis marketplace.
Investors can learn about these different opportunities at industry events like the recent Institutional Capital & Cannabis Conference, an inaugural conference which took place recently in San Jose. The conference featured panels for investors to learn about consumer involvement in the industry and about how to navigate the complex regulatory and tax landscape within which marijuana businesses currently exist. Conference organizers described the conference as “the only event of its kind focused on the legal cannabis business as an alternative asset class to achieve portfolio diversification.” Created with the needs of accredited investors and institutional investors in mind, the conference is not likely to be the only one for long as interest in marijuana investing expands.
A cannabis-focused investor network has also been created to serve as a research group as well as a networking organization connecting cannabis entrepreneurs with investors who are ready to give cash for innovative ideas. Since the network began operations, it has already raised $100 million which was invested in 130 different companies within the cannabis industry. Other venture capital and investment firms have gotten into the game as well, some of which are investing in media technology, lab testing, innovative remedies, mobile apps and research development.
With so many new investment opportunities springing up every day, cannabis businesses looking for investors as well as those with funds to invest will need to make sure they get knowledgeable, accurate advice about the cannabis industry from legal professionals with experience.
The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734.
Cannabis Industry Attracts More Mainstream Investors as Business Grows, April 11, 2017, By Nick Clement, Variety
More Blog Entries:
Report: Colorado Marijuana Laws May Not be Safe, Feb. 5, 2017, L.A. Marijuana Lawyer Blog