SXSW 2024

The High-Highs and Low-Lows of Cannabis Investing

Description:

In the beginning, private investors flood new legal cannabis markets with capital, sparking green rushes. But it doesn’t take long for the spigots to start squeezing shut. New investors ask tougher questions. They perform comprehensive due diligence. And too often, they discover cannabis companies saddled with bad debt and futures weighed down, if not doomed, by poor financial and strategic decisions made in the early days. In this panel discussion, participants explore the many red flags that investors like VCs should pay attention to when considering cannabis investments.


Related Media

Other Resources / Information

Laura Bianchi, Founding Partner @ Bianchi & Brandt: http://greenrushpodcast.net/
Tahira Rehmatullah, Partner: https://www.youtube.com/watch?v=VB3xAVC_mnU
Joyce Cenali, COO @ Big Rock: https://www.youtube.com/watch?v=Dv4V9jDw7Vw
Jeanne Sullivan: https://www.youtube.com/watch?v=QsO2zqJIjQM


Takeaways

  1. Invest for the long term. Making any return in a cannabis investment is far from guaranteed, and it rarely happens rapidly. Practice patience.
  2. Assets matter. Real estate is straightforward. Things like licenses, complex. Invest in experts who gauge collateral and include them in contracts.
  3. Cannabis is the B team until federal legalization. The regulatory landscape stymies growth and profits. Prep for a bumpy, but maybe fruitful, flight.

Speakers


Organizer

Molly Sposato, Account Coordinator, Grasslands


Meta Information:

  • Event: SXSW
  • Format: Panel
  • Track: Government & Civic Engagement
  • Track 2
  • Level: Intermediate


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