Marijuana Crowdfunding Connects Startups And Investors

crowdfundingLegal marijuana is now one of the fastest-growing industries in the US. Encouraged by changing laws and increasing public favor, numerous startups have emerged and come flooding into this space. With this comes the need for funding and investments to back such businesses.

Industry participants are starting to turn to crowdfunding as a means to help marijuana entrepreneurs find and connect with potential investors. In fact, cannabis crowdfunding sites now exist and are gaining attention, enabling marijuana startups to pitch to investors online, without having to travel to reach them.

One such site is CannaFundr, which is touted as an online investing marketplace focused on the cannabis industry. Using this site, marijuana startups can get access to accredited investors, who can then co-invest in deals or even provide funding online. Aside from being accredited, many investors on this site have also previously made marijuana investments, so they are no stranger to the industry.

The site has already led to a number of investments. Earlier this month, the Washington, DC-based company New Frontier Financials, which is dubbed the “Bloomberg for Weed”, raised $250,000 by crowdfunding there.

Based in Chicago, CannaFundr is itself a startup, one that is owned by a leading crowdfunding network, CrowdFund Connect, Inc. Though CannaFunder caters specifically to the still-nascent cannabis industry, it already has opened offices in New Jersey, Michigan, and Florida. The industry has also recognized the company as a resource, slating it to speak at the upcoming Marijuana Investor Summit in Denver.

In a statement, CannaFundr founder Randy Shipley said that crowdfunding is one of “the mechanisms for investment” and can reach its potential if people take advantage of it.

Other crowdfunding tools specifically serving the marijuana industry include Potfunder, CannaDabbaDoo, and WeCanna. There are also investor networks aiming to help cannapreneurs; most popular of these networks is The ArcView Group.

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