Look Beyond the Valuation of a Cannabis Business to Create a Valuable Relationship
Many cannabis investors and companies seeking investments are looking to establish relationships with each other as strategic partners, not simply silent partners. A strong relationship between the two parties should be a top priority — if the parties aren’t willing to work towards this common objective, it is unlikely a good match. Using the process of raising or investing capital to develop strategic partnerships within the cannabis industry has added value since most companies are on a trajectory to grow, and many investors want to be more than just silent partners. It means that creative relationships can be developed so long as both sides are open to finding ways of maximizing the value of their potential relationship.
Whether you are an investor or a cannabis company looking to raise capital, taking the time to understand what is respectively valuable in the relationship is crucial to ensuring that it is successful. There are broad categories to be considered in the process, but ultimately what is valuable to a given individual or company is particular to the entity. Thus, though highly subjective, there are three broad categories to be considered in the process:
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