Equity Or Debt: Which Is The Best Path For Cannabis Startups?
Securing capital in the cannabis industry can be challenging, but it is achievable. During the Benzinga Cannabis Insider event, Titans In Finance, financial experts shared their strategies to help businesses succeed.
The event featured Adam Stettner, CEO of FundCanna, Seth Yakatan, partner at Katan Associates International, and Henry Miller, vice president of Pelorus Capital Group, who offered valuable advice on balancing equity and debt.
Unlocking Equity: A Crucial but Costly Resource
Stettner emphasized the critical role of equity in the early stages of a cannabis business. “Equity is the most expensive money you can get in the sense that you’re giving a piece of your business away that you cannot get back,” Stettner remarked. He stressed the importance of choosing equity partners who provide more than just funding.
“You need to know intimately who you’re bringing on as your partner, and they need to bring value beyond the money,” he added. While equity is vital for startups, it comes at a high cost, making it essential to select partners who add substantial value.
Tackling Debt: Strategies in a Tight Market
Yakatan highlighted the current market …