Is ‘Cannabis Crowdfunding’ for You? A New SEC Rule Could Open Startup Investment to Everyone
Investing in startup cannabis companies is about to get easier for the little guy. And for the little company.
New federal rules to take effect May 16 allow a wider spectrum of investors to put money into startups and early-stage companies. The rules affect all companies across all industries, but experts in the cannabis space are especially keen on the rule change, as it’s expected to offer investors and companies a new way to connect.
Industry insiders at last week’s Marijuana Investor Summit in San Francisco were buzzing about “regulation crowdfunding,” one of the new types of transactions that will become legal in mid-May.
“What you’re going to see is the collision of crowdfunding and cannabis,” said Randy Shipley, chief revenue officer at MJIC, the cannabis business and investment advisory company.
It’s not as simple as putting up Kickstarter page, though.
“One of the misconceptions new owners have is...
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