The cannabis industry has become a nest of investment opportunities. However, investing in cannabis differs from other sectors in a lot of ways. One of the main things that sets this space apart is the fact that it is still in its creation phase. Cannabusiness is an actively developing space. With that comes no historicals to reference; no previous data on which to base investments.
For investors to enter this space, there must be an effort to dig in and figure out a way to it. It’s about understanding the industry on a ground-up basis because the information flow and data sets are limited. You have to live in it, to be a part of it genuinely. Part-time investors beware: it’s hard to be in this space part-time if you’re looking to gain exposure. If you want to invest in the industry, you have two ways to go about it.
- You find and invest with managers that live and breathe this industry every day, or
- You live and breathe it yourself.
It’s also essential to understand that this industry is a microcosm of the world in terms of it covering nearly all the verticals that exist. Cannabis can bring opportunities in:
- Agtech
- SAS tech
- Supply chain
- Data
- Advertising, media and marketing
- Real estate
- Cultivation
- Manufacturing
- Retail
If you want to begin investing in cannabis, you just have to know where to look. Once you spend the time to understand this industry, you’ll then have to familiarize yourself with the various subsequent verticals. For the individual investor, it is a multipronged process of diving in fully to understand the industry as a whole, and all moving parts to uncover the best opportunities.
Read more from our recent eGuide: http://tencapital.group/how-we-invest-vol-vii/
Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group
