In 2014, investments in marijuana industry rose by 74 percent up from $1.5 billion for the previous year, according to The ArcView Group. The figures have continued growing since then making the industry an attractive venture for other investors. Even with many investors flocking to this opportunity, it doesn’t necessarily mean it is generally lucrative. Every investment opportunity has its own perks and pitfalls, so it’s usually wise to get prepared with a marijuana investment strategy.
Ways to Invest in the Marijuana Industry
For a successful strategy, it is important to identify the best areas to invest in. In most states, you can only have two licenses out of about 17 areas of marijuana business options. So, you can either choose one or two depending on what you want. Some of the ways include cultivation, consulting, entertainment, research and development, and testing. There is also a lot of energy that is being used in the marijuana industry and a good idea is investing in an option that helps to protect the environment.
Determine the Potential for Scale
While creating your marijuana investment strategy, try to weigh different options to identify the area that has the potential for scale. Fortunately, the business is already big in states such as Colorado and California. The first step is to establish yourself as an expert in the field you opt for. If you have little information about the right areas to choose, you can join the ArcView Investor Network to learn about emerging cannabis areas.
In some cases, people who lack enough knowledge on the cannabis industry join investment groups to make a collective investment. In this case, you can work with marijuana consultants and learn more about cannabis investment opportunities from the group. Typically, the investor network is an Angel group that explores different opportunities and deals with negotiations that involve legal complications. Additionally, group investment helps in making informed decisions due to the vast knowledge the members possess.
Do You Want Public Companies?
There are public companies that are involved in the cannabis and these companies may be considered illegal by federal laws. So, at this point, it is not recommended to invest in public cannabis companies. Some of these companies have gone public through a backdoor technique known as a reverse merger and not through an IPO. You should always engage in cannabis consulting to find more convenient ways to make the right investment in the cannabis industry.
The cannabis industry is still in its infancy and there are more opportunities that are yet to come. In the next five years, cannabis revenues are expected to exceed those of NFL, food industry, and film industry. When creating a marijuana investment strategy, it is important to take into account future possibilities and get help whenever necessary. The current state of the industry seems to be promising investors more opportunities, which you can leverage only with a property strategy. As an investor, it is advisable to look for short-term and long-term opportunities that are positioned to bring in huge returns.