Cannabis Business Financing Alternative Ways to Fund Your Cannabis Company (1)
                     Cannabis Business 
Financing: Alternative 
Ways to Fund Your 
Cannabis Company
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In the early days of the cannabis industry, many startups had 
to rely on friends and family for initial capital. As a result, 
many businesses started with humble beginnings or failed due 
to the inability to access money early.
In recent years, however, there has been a significant increase 
in cannabis financing available. This has been driven by 
investors seeing the potential opportunity in this rapidly 
growing industry. As a result, there are now many options for 
funding your cannabis business. UPWISE CAPITAL
WHAT IS CANNABIS BUSINESS FINANCING?
In this process, lenders supply money and resources to get an organization off the ground. It can take many different forms, 
some of which are mentioned below. 
 
The first thing to understand for buyers is that financing is not the same as an investment. Funding is giving someone money to 
start a business. Investment is giving someone money in the hopes that it will make you money. 
Funding happens at the beginning of the company’s lifecycle: when the founders are getting their idea off the ground, creating a 
product, and bringing it to market. Investors fund businesses by giving them money in exchange for a return on the investment. 
In the cannabis industry, this would be in the form of an equity stake in the company.
WHY IS CANNABIS BUSINESS 
FINANCING SO IMPORTANT?
The cannabis industry is still growing from its babyhood and projects rapid 
growth over the next few years and beyond. Because of this, loan experts expect 
a significant need for financing. The need for funding has continuously seen 
growth for over a decade now. Investment in the cannabis industry is projected 
to reach $75 billion by 2025. With such a huge possibility for growth, it’s no 
surprise that cannabis financing is so important. 
 
As a founder, you’ll likely need some form of cannabis business financing to 
get your company off the ground. Even if you have a great idea and have put a 
lot of time into research and development, you’ll still need a source of capital to 
make your company a reality. It’s not easy to get financing for a cannabis 
startup, but it is getting easier.
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EQUITY DEBT 
One ofF theI mNost coAmmoNn formCats oIf NcannaGbis financing is equity financing. DeFbt fiInaNncingA is wNhen yCou bIorNrow cGapital from a lender or 
Equity financing helps when investors give you money in exchange for a institution. This is a very common method of funding for many 
part of your company. One of the biggest challenges cannabis startups face companies, including cannabis startups. 
is accessing early-stage capital. Investors are wary of putting money into a 
 
business they cannot be 100% sure will stay legal in the future. Luckily, 
It’s also a great option for companies needing quick capital access. 
plenty of equity funding options are available for cannabis businesses. 
Further, it also makes up for a viable option for cannabis startups as 
 
many debt financing options are now available. Cannabis businesses 
One of the most prominent equity funding sources is through a cannabis 
have access to various debt financing options. The most common 
angel investor network. Angel investors are individuals who make small, 
unsecured investments in startups. Most angel investors are well-connected are commercial loans, loans from financial institutions, and credit 
and can provide valuable advice to cannabis businesses at all life cycle lines. You can access commercial loans from banks, credit unions, 
stages. and venture capital firms.
MARIJUANA MERGERS AND ACQUISITIONS 
(M&A)
M&A is when one company buys another. It has become 
common practice in the cannabis industry and can be a great 
way to acquire new customers, increase brand awareness, and 
acquire cannabis inventory. It’s also an effective way to raise 
capital for your business and acquire assets at the same time. 
If you are looking to acquire another company and raise 
capital, you’ll likely want to use an M&A strategy. There are 
many cannabis investment groups that specialize in matching 
cannabis companies with each other.
CONTACT US
[email protected] (646) 837-5522
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