Cannabis startup founders share 4 critical lessons they learned while raising money in the unique industry
Those types of angel investors — partners at VC funds who may look at cannabis deals but are unable to commit their fund's capital — are "a lot of what's propping up the industry right now," said Bullock, Cann's cofounder.
. Rather than hit up a mix of high-net-worth angel investors, K-Zen's cofounder Judy Yee tapped into an existing relationship she and her cofounder Soon Yu had with blue-chip Silicon Valley firm DCM Ventures. DCM is one of the few firms of the Sand Hill Road set that had previously invested in cannabis startups,"I think by targeting those types of investors, we haven't had to run into a lot of folks saying, 'no, that isn't part of my investment thesis,'" Yee said. "We did that homework up front."We got an exclusive look at the pitch deck two Ivy League MBAs used to raise a $1.
DCM, which manages around $4 billion, is an outlier among its peer firms. VC reluctance to invest in cannabisThese LPs are often institutions like pensions, endowments, or sovereign wealth funds. They manage billions of dollars and are bound by strict rules around where they can put their money and how those funds are accounted for.
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