Investment & Fundraising

Marijuana Business Lawyers

One important aspect of growing your cannabis company is making sure that you have adequate funding to operate the business. The cannabis industry is extremely capital intensive and raising capital to fund your business can be complicated. On top of this, many cannabis entrepreneurs underestimate the amount of capital they will need to launch their business.

Due to the federal illegality of cannabis, many traditional sources of capital, such as banks and institutional capital, are unavailable to the cannabis industry. Because of this, entrepreneurs in the cannabis industry are forced to be more creative when it comes to capital raising than businesses in other industries. Despite these restrictions, there are still plenty of avenues for fundraising available to the cannabis industry, these include: private debt transactions, SAFEs, private placements, and public offerings.

Each source of capital available to cannabis businesses is different and they all have pros and cons. Raising funds through debt, for example, is non-dilutive, but the business must repay the funds with interest. Selling equity in the company means the capital does not have to be repaid, but it will likely require numerous filings with regulators to update the company’s ownership structure with the State.

The experienced cannabis attorneys at Cantafio & Song have been helping business owners raise capital for decades. Let our knowledgeable team help you navigate the fundraising process to support your growing cannabis business.

Free initial consultations are available for potential clients: Call (888) 458-0991