Cannabis + Crowdfunding: The Future of Green Financing.
There is no money in growing cannabis. This is not a debate, it’s just a simple fact. There is a reason you’ve never meet a rich rice, banana, tobacco, watermelon and definately dairy farmer. Farmers are at the bottom of the revenue stream. Why is that? Commodities. Once something is commoditized farmers always get screwed. Yes, farmers do the hardest work/labor. However, who makes the most money in any commoditized ecosystem? Hint, it’s not retailers. So, if you’re question is,
“Can I use Reg CF, Title III of the JOBS Act, to raise up to $1.07M dollar for my cannabis farm?”
The answer is, “Yes, you can. But don’t do it. Cannabis cultivation is a dead industry”. I know. I know. How can something be a dead industry when its not even taken off yet? I said cannabis cultivation is a bad bet. You simply can’t scale as fast as the cigarette companies. However, there are many avenues to make money in the cannabis space, for which crowdfunding may be a viable avenue for raising funds. For instance, you may never milk a cow but that doesn’t prevent you from making a fortune selling ice cream.
How does Reg CF crowdfunding work?
- Using the internet
- To ask strangers
- For money
You may be familiar with this in the form of Initial Coin Offerings (ICOs) or Securitized Token Offers (STOs). Those tend to be unregulated forms of crowdfunding. We don’t recommend you do that. We recommend regulated JOBS Act crowdfunding.
How much can I raise with JOBS Act crowdfunding?
Reg CF: You can raise up to $1.07M dollars
Reg A/A+: You can raise up to $50M
Reg D: There is no limit on the amount you can raise
Check out the videos on Crowdie Advisors to learn more about the different types of crowdfunding.
How do I use crowdfunding to raise money for my cannabis business?
The first thing to do is some research to determine if equity or debt crowdfunding is the right option for your business. If you conclude that it is, the next steps will cost you between $50k and $250k. Yes, yes, I know. Spending that much money to raise $1.07M makes no sense, until you do the math on how much it actually cost to raise money using Reg D and Reg A.
For further assistance I recommend retaining Crowdie Advisors (www.crowdieadvisors.com) to help demystify and simplify your business’ financing and equity crowdfunding needs. And remember, it takes money to make money and nothing in life or business is free. Good luck and may the odds forever be in your favor.
Thank you for reading my article. On LinkedIn and for the Blockchain Business Magazine I regularly write about technology, cannabis, crowdfunding, health and compliance investing trends.
About Samson Williams
Samson is an internationally recognized anthropologist and expert in Operations & Technology, Blockchain, mobile payments, mortgage finance and organizational change management driven by FinTech innovation. Samson is ranked among the globe’s top innovative technology professionals for his cutting-edge research and applications in crowdfunding, tokenomics and digital securities. Samson is the co-creator of the University of New Hampshire School of Law’s Blockchain, Cryptocurrency & The Law Certification Program, adjunct professor at Columbia University in NYC, a Board Member of the Crowdfunding Professional Association, contributor at the Blockchain Business Magazine and Principal consultant at Axes and Eggs. For business inquiries Samson can be reached at firstname.lastname@example.org