Just a few years ago, the medical marijuana industry was considered the butt of many jokes by many professional investors. However, times have changed and as the cringeworthy amount of marijuana related puns starts to subside as investors are getting a lot more serious about putting their money in the medical marijuana industry. In one of our earlier posts, we talked about how unexperienced executives are one of the big hurdles the industry has to fight through. Evidently angel investors and investment funds think they may have the secret sauce, with more and more “smart money” firms setting their sights on the medical marijuana industry as a viable investment option. Firms are placing millions of dollars on the bet that the predicted medical marijuana industry boom won’t be a bust.
“Everybody’s loosening up a lot because they realize the momentum has shifted and the financial world is going to have to make room for this industry… Wall Street and investment banks are going to have to come along for the ride, eventually.” - Vincent Mehdizadeh in the LA Times
In this same article Vincent Mehdizadeh, founder of Medbox Inc., talked about how Medbox is going about raising their $20 million they need for expansion. He claims that he has personally seen a “major spike” in interest from potential investors in the past year. This past year has been very significant for potential investors because of legalization of recreational use in Colorado and Washington and it’s not stopping there. We feel strongly that more and more investors will continue to allocate part of their capital in the rugged terrain of medical marijuana.
Furthermore, many companies like Terra Tech (OTCBB:TRTC) are prepping their infrastructures and hold their breathes until an investor thinks the time is right throw some skin into the game. Terra Tech’s facility to grow marijuana has been hindered by federal law against medical marijuana for a number of years now. They know that when the time is right, they can scale things “very, very quickly.” There are many companies who are just waiting with bated breath for the federal government to retract laws that scare investors away from financing their businesses.
“More and more people see the inevitability… They see that the Berlin Wall of cannabis prohibition is going to come down.” – Brendan Kennedy, chief executive of the Seattle private equity firm Privateer Holdings.
Investment firms are in the same boat. They are starting to dip their toes in the murky waters of the industry, but most of the funds are teetering on the fence waiting for the federal government to give a significant ”go sign”. When they finally do accept marijuana as an acceptable medicine we will see the floodgates open, and everyone will want in. There will no longer be a problem of unqualified executives, but more a question of who can get there and establish themselves first as an industry leader.
Us weed entrepreneurs see the bright light at the end of the tunnel. We can see that the rate states are legalizing medical marijuana is growing every year. Research medical marijuana stocks, and invest early. Jump on the train before it’s too late because the risk is worth the potential huge reward.