Find funding for your cannabis business on this no-fee crowdfunding platform, but with some drawbacks.
- Best for startups that process cannabis products.
- Pick something else if you want to fund a grower or dispensary.
|Product Name||CannaFundr cannabis business crowdfunding|
|Requirements||Must be in a US state where marijuana is legal, business plan, investment pitch deck|
How much will CannaFundr cost me?
It’s free to sign up for CannaFundr — and you won’t have to pay back the money you raise since it’s equity-based. What you will lose, however, is ownership. Investors funding projects through CannaFundr get their returns from profits your business brings in.
But you won’t sacrifice as much control as you might with equity funding in another industry. The Securities and Exchange Commission (SEC) caps crowdfunded investments businesses at $2,200, so you won’t have to worry about one investor taking over a large percentage of your shares.
What do I need to qualify?
To apply for funding with CannaFundr, your business must fulfill these requirements:
- Be in a state where marijuana is legal.
- Be cannabis-oriented.
Given the murky laws and legality of running a cannabis business, CannaFundr’s review process is rigorous — and you’re only approved if investors are interested. To increase your chance for approval, make sure you have a solid business plan, investment pitch deck and lots of visuals.
What information do I need to apply?
Have the following documents on hand when you set up your CannaFundr campaign:
- A business plan. Keep your complete document on hand for any investors, and use parts of your plan — like the executive summary, financial model and performance reports — to flesh things out.
- An investment pitch deck. Upload a short presentation to your profile to give investors a quick sketch of your business plan.
What industries does CannaFundr work with?
CannaFundr works with all businesses in the cannabis industry. However, it might be easier to get funded if you process, package or sell cannabis products. Cultivation is legally risker for investors, so you could have trouble reaching your goal.
Pros and cons
CannaFundr isn’t right for every cannabis business. Weigh these key benefits and drawbacks before you sign up.
- No sign up fees
- Specializes in startup funding
- Receive one lump sum from a pool of investments
- Many multimedia options for your campaign
- Website is friendly for investors, not businesses
- No phone number to get in touch
- Only investors can see other campaigns
- You can’t follow up with investors who’ve viewed your project