With mainstream banks and credit unions unable to lend to cannabis companies, marijuana entrepreneurs are turning to alternative sources for capital.
Options run the gamut from crowdfunding, venture capital, private equity, and even government support, but the bottom line is access to capital remains a big issue for the industry, particularly startup cannabis companies.
Connecticut Innovations, the state’s quasi-public venture arm, has invested $1.25 million in a Colorado recreational marijuana company, a move that is being touted as the first investment made by a state entity into a cannabis business.
Connecticut Innovations (CI) recently invested $1.25 million in 1906, a recreational cannabis pills company moving its headquarters to the state.