Generally speaking, traditional funding for cannabis related companies involve, posting collateral belonging to the cannabis company, the individual owners of the company or both in addition to a high interest rate and/or a substantial percentage of the borrowing entity’s equity. Not only does this often prove untenable or unattractive to the borrower but more importantly, it fails to separate you from the masses of other companies also seeking financing. It is axiomatic that attracting initial interest to your project greatly increases the odds that financing can be achieved. The ultimate question for the business owner seeking capital to answer is” How do you attract that initial interest?”
The funding of cannabis – related companies compounds the problem that traditional financing presents because of the unique risks that Cannabis faces. The Cannabis Sector represents the classic high-risk high-reward investment opportunity. Cannabis is a growing industry that intrigues many investors with its potential of high returns. But along with the potential of high returns comes the concerns of high risk. Cannabis has risk factors that are unique to its industry that must be addressed by any interested investor. The four (4) categories of risk in investing in cannabis are as follows:
- Legal Restrictions;
- Valuation;
- Dilution;
- Commoditization.
Our service is in creating investment confidence/collateral through the use of our methodology that will assist cannabis and cannabis -related businesses and/or business ideas in obtaining the capital they require. We help facilitate the capital raise for the Cannabis Sector with a proven risk mitigator that specifically and completely addresses the unique issues that cannabis companies face. We cannot and do not offer guarantees because ultimately whether you are funded depends solely upon the viability of your business and/or business idea. However, we can guarantee that by attaching our risk mitigator to your company, you change investing in cannabis from “high risk – high reward” to “low risk – high reward”, thereby creating a much more attractive investment proposal to cannabis investors.
There are thousands of other cannabis projects seeking financing. By engaging us you differentiate yourself from your competitors and get the ability to obtain that critical first look from investors/lenders by having sufficient collateral to protect the investment amount at a very manageable cost. This differentiation will allow you to attract the interest and facilitate the funding process from investors/lenders because they know their principal will be protected and they will be receiving dividends from day one while the project is being developed.
Please feel free to reach out to us at valentipartners@gmail.com for more information.
Dominick M. Valenti
Chief Executive Officer
Valenti Partners, LLC
www.valentipartnersllc.com