By Noah Miller, CEO of Black Dog LED.
Cannabis entrepreneurs, like those in other businesses, face a multitude of challenges including product development, building a team and acquiring customers.
Yet, one of the most significant hurdles is raising capital to help your business scale – something I’ve recently gone through myself.
As more institutional money pours into cannabis, entrepreneurs are being held to higher standards of professionalism than ever before. And today, with COVID-19, the pool of investors is shrinking while the need for funds to weather the storm has increased.
As such, the competition for capital has never been greater. Investors expect well thought-out business plans, clean, polished pitches, and an understanding of basic venture finance and capital structure.
Many first-time cannabis entrepreneurs often make mistakes; the most common being, treating the cannabis sector as if it were any different than any other market. Cannabis investors are no different than other investors in that they are looking for the same thing: solid businesses with excellent leadership, experience, market fit, and understanding.
When developing your pitch to investors, or when presenting, don’t forget to answer the four most important questions that you’ll need to answer to satisfy you’re your audience: Why, What, Who and How.
Why are you seeking capital now?
The most basic question that you’ll need to answer is why you’re seeking capital.
Is it for a build? A major product launch? Do …