One of the challenges of cannabis marketing is finding people who are willing to invest in a young business. This is because of the stigma that still surrounds the plant even in places where it’s legal, though sentiments are starting to change. Nevertheless, the demand for marijuana and other related products continues to grow each year, with the cannabis world market value projected to reach around $150 billion by 2025. If you want your cannabis company to thrive in this industry, here are a few ways to find the financial backing you need.
How To Find Cannabis Company Investors
1. Join Cannabis Conventions
Recreational marijuana use is legal in 11 US states and decriminalized in 15. Meanwhile, medical marijuana is legal in 33 states. You can join cannabis industry expos in these places. These events are a hot spot for finding potential investors and new clients. You have a higher chance of convincing them if you make your pitch in person, though you also need to follow up with them after the event. Aside from doing some cannabis marketing, you can also use conventions as an opportunity to scout out the competition and learn from them.
If you’re interested in joining one taking place soon, you can check out Cannabis Business Times’ list of upcoming cannabis conferences. If you’re up for some long-distance traveling, they’ve also included conferences taking place in other countries, not just in the USA. This can be useful if you have plans to expand your business’s reach to a global scale.
2. Work On Your Online Presence
Cannabis conventions are great venues for finding investors, but you also have options on the Internet. Working on your online presence helps you build credibility and shows that you’re serious about your business. You can reach even more prospects on social media platforms and other websites through digital marketing. You can also cement your partnership with an investor even further when you connect with them online.
Sites like Facebook and Instagram are ideal for mainstream brand promotion, while a LinkedIn profile is more suited for networking with professionals. These platforms also have groups that are dedicated to the marijuana industry, so you’ll want to be engaged with them. A cannabis marketing expert would also advise you to participate in marijuana-related websites, blogs, and forums, since your target market is already there. You can also get an influencer who can convince their followers to buy or invest in your products or services.
It’s also a good idea to have your own website and create regular content for it so that you’ll appear in the search engine results in platforms like Google. It also increases your chance of having potential investors and customers “stumbling” onto your business. There are also online directories for cannabis businesses that you can sign up for. You’ll want to sign up for as many as you can so that more people know what your business does and where you’re located.
3. Launch A Crowdfunding Campaign
Many small businesses have turned to crowdfunding to find the money they need to get started or to create a new product. In return, the contributors can either be:
- Paid back with interest after a certain time
- Given shares of the company
- Offered rewards or free samples
This method is also another excellent way for the cannabis marketing team to introduce their brand or products to the market. Offering discounts, bonuses, and other exclusive perks are bound to grab a lot of attention. You can also generate more buzz for your crowdfunding campaign when you promote it on social media networks and cannabis websites.
Some of the most popular crowdfunding platforms include Kickstarter, Patreon, and Indiegogo. You can also opt for platforms dedicated to cannabis, such as:
4. Use Equity Funding
Many US marijuana businesses search for funding alternatives because most banks don’t offer loans to them, even in states where cannabis is legal. This situation might change if marijuana becomes legalized nationwide. But in the meantime, some company owners turn to or are approached by private equities and venture capital funds. One famous example is Leafly, the world’s biggest cannabis-related website, which was acquired by Privateer Holdings in 2011. The site was relatively successful on its own, but its popularity skyrocketed once the equity firm financed it.
However, one major drawback of private equities is that you usually have to give up a significant portion of your company shares to the firm in exchange for funding. This might not sit well with you if you don’t want them to have control over your business decisions. Some equities offer terms that only require you to give them partial ownership but let you have free reign over your operations.
5. Find An Interested Friend
A simple and straightforward way to get investors for your cannabis company is to ask a friend or an existing contact in your network. And if they can’t provide the funding themselves, they’ll be able to point you to the right people. You can find an investor much faster if you or your friend already has connections with other marijuana-related businesses.
Remember to be honest and respectful when itching to your potential investors. According to Greentrepreneur, marijuana investors tend to look for certain qualities in entrepreneurs they meet with. Even if you’re approaching a family member or a close friend for finances, you must be able to explain your company’s goals and show a comprehensive plan on how you’ll achieve them. This way, they’ll be more confident with entrusting you with their money.
Every marijuana business needs a cannabis marketing expert to get their digital footprint across the weed market. Medicated Marketing works with all types of cannabis-related businesses, from dispensaries to laboratories. They create tailor-made organic solutions using SEO, lead generation, reputation management, and web development to help your company grow sustainably. If you want your business to reach higher levels starting today, get in touch with us.