colonuggs
Well-Known Member
Once skittish investors putting more money into pot industry
By Matt Markovich Published: Nov 5, 2013 at 4:44 PM PST Last Updated: Nov 5, 2013 at 6:46 PM PST
»Play Video
SEATTLE -- It's been a year since Washington's historic vote to legalize pot, but many investors have kept their distance, fearing the federal government could come in and shut down marijuana business.
That's all changing, and big-money investors are now stepping out of the shadows. Investors with millions of dollars at their ready met Monday with entrepreneurs in the marijuana business.
The about-face is due to a six-week-old memo from Deputy Attorney General James Cole that said people who lease properties to pot producers, growers and investors will not be subject to federal law enforcement action.
"The whole purpose of these gatherings is to bring investment into the cannabis industry," said Steve DeAngelo, executive director of the Harborside Heath Center. "We don't really have concerns at this stage in the game that the federal government is going to attempt to seize property or is an attempt to seize bank accounts."
That memo means people like Paul Schrag, who works for a company that plans to grow pot, can now openly pitch investors.
"When the gold rush happened, the people who made a lot of money in gold made all their money selling shovels. And most of the people who've been garnering investment in this industry are people making shovels. We are digging for green gold here," Schrag said.
It's a seismic shift for pot investors.
"We are definitely seeing people investing directly into licensed cannabis providers," said Troy Dayton, CEO of the Archview Group.
Despite the assurances from the government, Seattle investor Jim Willett is leery. He's already invested $1 million in cannabis service businesses, but not on pot growers.
"This entire industry is being created out of thin air," he said. "I viewed it as something akin prohibition right before it ended."
So the green rush is on. Where else can you invest in Massroots, a social media app that allows pot smokers to share information with their friends about what kind of marijuana they're enjoying? Massroots got $100,000 from investors.
The last time the Archview Group had pitch meetings in Seattle for pot-related companies, two investors ponied up $2 million. Now, with the federal government signaling it has no plans to intercede on pot investments, their will be a lot more money pouring into the marijuana business.
By Matt Markovich Published: Nov 5, 2013 at 4:44 PM PST Last Updated: Nov 5, 2013 at 6:46 PM PST
»Play Video SEATTLE -- It's been a year since Washington's historic vote to legalize pot, but many investors have kept their distance, fearing the federal government could come in and shut down marijuana business.
That's all changing, and big-money investors are now stepping out of the shadows. Investors with millions of dollars at their ready met Monday with entrepreneurs in the marijuana business.
The about-face is due to a six-week-old memo from Deputy Attorney General James Cole that said people who lease properties to pot producers, growers and investors will not be subject to federal law enforcement action.
"The whole purpose of these gatherings is to bring investment into the cannabis industry," said Steve DeAngelo, executive director of the Harborside Heath Center. "We don't really have concerns at this stage in the game that the federal government is going to attempt to seize property or is an attempt to seize bank accounts."
That memo means people like Paul Schrag, who works for a company that plans to grow pot, can now openly pitch investors.
"When the gold rush happened, the people who made a lot of money in gold made all their money selling shovels. And most of the people who've been garnering investment in this industry are people making shovels. We are digging for green gold here," Schrag said.
It's a seismic shift for pot investors.
"We are definitely seeing people investing directly into licensed cannabis providers," said Troy Dayton, CEO of the Archview Group.
Despite the assurances from the government, Seattle investor Jim Willett is leery. He's already invested $1 million in cannabis service businesses, but not on pot growers.
"This entire industry is being created out of thin air," he said. "I viewed it as something akin prohibition right before it ended."
So the green rush is on. Where else can you invest in Massroots, a social media app that allows pot smokers to share information with their friends about what kind of marijuana they're enjoying? Massroots got $100,000 from investors.
The last time the Archview Group had pitch meetings in Seattle for pot-related companies, two investors ponied up $2 million. Now, with the federal government signaling it has no plans to intercede on pot investments, their will be a lot more money pouring into the marijuana business.