- Experienced, seasoned, and mature management team
- Scalable businesses requiring low CapEx
- Businesses not subject to the interstate commerce issues
- Not directly exposed to supply, demand and pricing dynamics
- Proprietary intellectual property, methods, and technology
- Reasonable and justifiable valuations
- Clear visibility to profitable cashflows
- Prudent Use of funds and clear path to MVP or rollout of services
- Competitive advantages within the industry
- Synergies with portfolio companies, our investors, and our industry network
- Strategic and capital strong co-investors
- 6-9 months ‘monitoring’ of management/operations and execution
- Visible and viable exit strategy or path to monetization
Areas of Focus
We are focused on investing in scalable businesses, most importantly technology and bigdata. We seek out high-margin products and services that provide clear added value to operators. We seek out companies with low cap-ex and labor costs, such as those involved in providing tertiary internet services, software solutions, regulatory compliance, testing and research and security.
There is a huge opportunity in ‘the businesses of the Cannabis industry’…in order for the cannabis industry to emerge and develop, many supportive verticals will be swept up in the growth.
We see numerous ancillary businesses that will be necessary and critical to facilitate the growth of the industry. Testing labs and equipment, business intelligence, data analytics, grow technology, extraction equipment and services, packaging, branding, and licensing opportunities, security and cash management, CBD products in the health/wellness nutraceuticals, veterinary and petraceuticals are all areas that we believe offer tremendous opportunity for development and high growth which will require supportive business products and services to execute their plans.
There is substantial pressure upon the cannabis industry to respond to legal regulations, which can be complicated, time consuming, and expensive. We seek to invest in companies that can profit because of this regulatory and compliance chaos. Entrepreneurs that facilitate businesses to function will be sought after.
Significant opportunities exist to invest in cannabis industry operations requiring the engagement of neutral third parties to ensure accurate, timely, and competent compliance with various state and federal regulatory authorities. Technology solutions and data analytics will be a critical infrastructure backbone and will provide significant opportunities for exponential growth opportunities.