#1 The right team with the right domain expertise.
This is a no-brainer in tech, but it might be hard for, even experienced, early stage investors to spot the kind of talent that is foundational to success in a cannabis company. You definitely need a strong CEO. Somebody who has a solid grasp on the business end of things. Good operational skills and a track record in execution are also an absolute must. It is important to realize however, that real cannabis craft has been acquired over years in a shadow economy that has little to do with building professional credentials and a network on LinkedIn. You are going to need it, and it may come in a package that does not fit with the kind of person or profile you are used to investing in. I would go so far as to say, if you are a tech investor and you can relate to everyone on the team you are looking at, you probably don’t have the right team. Just be prepared to deploy different strategies for validating talent in cannabis than you might deploy in industries that have evolved in the legal market. Realize that the talent you need may lack some of the professional skills that you will rely on to lower your risk, and make sure that the craft talent is supported by a team that can build a brand and bring a product to market.
Top 5 Things Investors Should Look for in a Cannabis Investment:
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