Ron Strider
Well-Known Member
The hurdles can be high and the pitfalls unpredictable when investing in the burgeoning medical marijuana industry, but it offers unparalleled opportunity, according to panelists discussing the topic Friday at a monthly meeting of the Association for Corporate Growth Connecticut.
"It's moving from a cottage industry working in the dark for 80 years to where we're starting to see the buy side dip its toes in the water," Scott Greiper, president and founding partner of Viridian Capital Advisors, told attendees. "We need more professional investors in this space."
According to a February Forbes report, sales for medical marijuana are expected to grow from $4.7 billion in 2016 to $13.3 billion in 2020. It also cited projections from New Frontier Data that anticipates 250,000 jobs will sprout from the "legal cannabis market" by 2020.
Specifically the medical marijuana industry provides plenty of opportunities for investors to profit, panelists agreed, but several aspects of the industry can make it a tricky business, they warned.
Angel investor and founder of Ford Capital Aaron Ford outlined three primary obstacles he's faced while navigating the market. "I could talk all day about the pitfalls," he said. "I've always been involved in cutting edge investing, but this is unlike anything else."
Ford cited the volatile regulatory environment governing the industry and learning how to work with the people who are experienced with growing and selling marijuana as some of his biggest difficulties.
"People often talk about the macro picture of how (President Donald) Trump and (U.S. Attorney General Jeff) Sessions could come in wipe out the industry, but it's really the micro issues that have an effect," Ford said. "Day by day and state by state, legislators are interpreting sometimes unclear legislation. One day a regulator makes a decision and all a sudden, you can no longer use a certain pesticide or your whole packaging process is turned upside down."
That minor regulatory changes can disrupt entire operations means people within the industry are hesitant to ask questions about what they are and are not allowed to do, Ford said. "You have to weigh asking if you can do something when a regulator could make a mostly uninformed decision that changes everything or just doing it."
Investing in the medical marijuana industry is frequently split into two groups, he said – those who touch the plant and those who do not. Much of his work has involved investing in growers who deal with the plant, which introduced him to a less professional business environment, he said.
"The default I found was that people cut corners and weren't very truthful," he said.
Greiper added that it can be tough to find viable business plans from people who are experienced in the industry, partially because it's still in the early stages of being legal broadly. "It's considered to be a five-year-old market in the business space," he said, adding, "It's a difficult business to operate."
Afterward, one attendee posed panelists with a question about the ethical implications of promoting what can be a "gateway drug." In response, both Ford and Greiper said they'd considered that before getting involved in the industry and have justified their choice through research and anecdotal experiences. "Opioids are prescribed easier than marijuana in Connecticut," Ford said, "and you can abuse any drug, but this has an aspect to it that is very valuable."
Greiper cited considerations such as the U.S. Department of Veterans Affairs' decision to begin trying medical marijuana with some patients and its success with some epileptics as reasons he feels comfortable with it. "It's all happening at the margins, but there are many nuanced changes that are pushing the industry along," he said.
News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: Panel: Medical marijuana lights up investment opportunities - GreenwichTime
Author: Macaela J. Bennett
Contact: Contact Us - GreenwichTime
Photo Credit: Brian A Pounds
Website: GreenwichTime: Southwest Connecticut Area News, Fairfield County News, Sports, Business, Entertainment, Real Estate, Classifieds - GreenwichTime
"It's moving from a cottage industry working in the dark for 80 years to where we're starting to see the buy side dip its toes in the water," Scott Greiper, president and founding partner of Viridian Capital Advisors, told attendees. "We need more professional investors in this space."
According to a February Forbes report, sales for medical marijuana are expected to grow from $4.7 billion in 2016 to $13.3 billion in 2020. It also cited projections from New Frontier Data that anticipates 250,000 jobs will sprout from the "legal cannabis market" by 2020.
Specifically the medical marijuana industry provides plenty of opportunities for investors to profit, panelists agreed, but several aspects of the industry can make it a tricky business, they warned.
Angel investor and founder of Ford Capital Aaron Ford outlined three primary obstacles he's faced while navigating the market. "I could talk all day about the pitfalls," he said. "I've always been involved in cutting edge investing, but this is unlike anything else."
Ford cited the volatile regulatory environment governing the industry and learning how to work with the people who are experienced with growing and selling marijuana as some of his biggest difficulties.
"People often talk about the macro picture of how (President Donald) Trump and (U.S. Attorney General Jeff) Sessions could come in wipe out the industry, but it's really the micro issues that have an effect," Ford said. "Day by day and state by state, legislators are interpreting sometimes unclear legislation. One day a regulator makes a decision and all a sudden, you can no longer use a certain pesticide or your whole packaging process is turned upside down."
That minor regulatory changes can disrupt entire operations means people within the industry are hesitant to ask questions about what they are and are not allowed to do, Ford said. "You have to weigh asking if you can do something when a regulator could make a mostly uninformed decision that changes everything or just doing it."
Investing in the medical marijuana industry is frequently split into two groups, he said – those who touch the plant and those who do not. Much of his work has involved investing in growers who deal with the plant, which introduced him to a less professional business environment, he said.
"The default I found was that people cut corners and weren't very truthful," he said.
Greiper added that it can be tough to find viable business plans from people who are experienced in the industry, partially because it's still in the early stages of being legal broadly. "It's considered to be a five-year-old market in the business space," he said, adding, "It's a difficult business to operate."
Afterward, one attendee posed panelists with a question about the ethical implications of promoting what can be a "gateway drug." In response, both Ford and Greiper said they'd considered that before getting involved in the industry and have justified their choice through research and anecdotal experiences. "Opioids are prescribed easier than marijuana in Connecticut," Ford said, "and you can abuse any drug, but this has an aspect to it that is very valuable."
Greiper cited considerations such as the U.S. Department of Veterans Affairs' decision to begin trying medical marijuana with some patients and its success with some epileptics as reasons he feels comfortable with it. "It's all happening at the margins, but there are many nuanced changes that are pushing the industry along," he said.
News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: Panel: Medical marijuana lights up investment opportunities - GreenwichTime
Author: Macaela J. Bennett
Contact: Contact Us - GreenwichTime
Photo Credit: Brian A Pounds
Website: GreenwichTime: Southwest Connecticut Area News, Fairfield County News, Sports, Business, Entertainment, Real Estate, Classifieds - GreenwichTime
