Here's Who Is Not Afraid to Invest in Cannabis
In an industry projected to be worth upwards of $40 billion in the next three years, one would think that banks would want a piece of this pie. But due to federal law that is not the case. Procuring funding in the cannabis industry is difficult, almost impossible.
PotNetwork reported earlier on the impossible relationship between big banks and cannabis. The federal regulations on marijuana in North America prevent banks from investing in cannabis the way they can in other commercial industries.
But even without the support of big banks, many pot stocks are still finding success. And in the United States, where pot is still illegal, investment firms are getting creative about how and where their funding goes.
Here is a quick snapshot of who is not afraid to invest in cannabis.
Archytas Ventures is one investment firm putting cannabis first. Taking their name from the Greek inventor of mathematical mechanics, Archytas invests in the mechanics of cannabis. The L.A.-based firm specializes in extraction equipment. They lease state-of-the-art extractors to cannabis cultivators and oil processors looking for affordable equipment.
“Equipment is the guts of the cannabis growing and processing business,” said Tim Rotolo, one of the founders of Archytas, in a recent interview with Forbes. “We can do whatever they want from setting the machine up and leaving, to servicing it, monitoring it over the internet, or staying onsite to run the machine and becoming the extraction team.”
Choosing to invest in equipment is how Archytas circumvents the constraints of legal funding, especially in the United States. Equipment and machinery are less risky than a land or flower investment, and the extractors can move easily across state lines without legal repercussion.
But equipment is not the only item in Archytas’ portfolio. Last October, Archytas invested an undisclosed amount of money in