The cannabis and hemp industries are maturing to a point where it is no longer taboo for venture capitalists to pump seed money into cannabis or hemp companies. The number and value of deals are growing at an exponential rate. Leveraging our connections and know-how, we assist our clients from early to late-stage funding and connect them to financial institutions, private equity funds, and venture capitalists looking to capitalize on the booming cannabis industry.
The industries are still rife with challenges, and it is important for companies and individuals to align with counsel who have been practicing in this space for decades. Since the federal government still lags in its acceptance of the business, most banks and traditional financial institutions will not lend to cannabis entrepreneurs and enterprises. Therefore, it is vital to secure capital from non-traditional sources while still having airtight agreements.
Many cannabis and hemp entrepreneurs tap private funding to start their ventures. Private money can come from savings, friends and family, or hard money and be easier to access; however increased risk accompanies these funding options. People have lost their life savings or encumbered themselves via the high rates of hard money loans only to find themselves in difficult positions when a venture fails. Our attorneys are realistic about funding needs and can help mitigate risk by structuring deals to insulate visionaries and their funders. Many people have ideas; however it is in the execution that successful capitalists are set apart from the impractical dreamers.