Fundanna Platform for Cannabis Industry

fundannaThe 1st Regulation Crowdfunding platform for cannabis businesses

Prior to May 16, 2016, generally only the wealthy could invest in securities of private companies. Now everyone has the right to invest in companies they believe in.

Founded by cannabis industry supporters, Fundanna was the first Reg CF portal dedicated exclusively to the cannabis businesses in the United States.
From potentially fighting diseases to its uses in the plastic, textile, paper, fuel, cosmetics and the food industry Cannabis is one of the most versatile plants (2). We understand that funding is one of the top challenges, as banks and lenders have limitations when considering a loan to “sin” based businesses. Fundanna’s goal is to support the industry’s growth by giving investors access to early stage cannabis investments and entrepreneurs the opportunity to raise to up to $1,070,000 per year through Regulation Crowdfunding.

Our team consists of ordinary people with extraordinary passion and experience. We dedicate ourselves to make Fundanna a customized crowdfunding portal for highest quality Cannabis businesses offering the newest services. Our collective talent in finance, marketing, and design form a powerful team committed to achieving and maintaining the #1 Cannabis equity crowdfunding portal in America.

Source: About: Equity Crowdfunding


CannaFundr Merges | Crowdfunding and Cannabis | MJINews

The spirit of the JOBS Act is strong, though its flesh (that is, its actual implementation) is weak. However, the spirit of that 2012 enactment may have just created an important new conduit for the movement of cash into the growing legal cannabis industry in the United States. The Act, known as the Jumpstart Our Business Startups Act, signed into law by President Obama in April 2012, came into being in large part to encourage crowdfunding, the specific subject of its Title III. Crowdfunding itself, the practice of raising money for entrepreneurial ventures from large numbers of people, often in small amounts per person, a practice generally these days accessed via the internet, predates the JOBS Act, but Title III tries to achieve the act’s titular “jumpstart” by virtue of making this easier. Daniel Broderick, writing as an HSBC contributor in Forbes, recently estimated that the size of the crowdfunding market jumped over $5.1 billion in 2013.   One Industry at a Time In that context, CrowdFund Connect seeks to bring small and medium sized startups from a number of industries to its widened investor base, one industry per platform, one platform at a time. The legal cannabis industry has recently received its time, and now its platform. Randy Shipley, the cofounder and chief executive officer of CrowdFund Connect, recently spelled out the company’s history. He said that CrowdFund Connect began life with the name SocialGravity, an integrated platform-as-a-service (paas) that aimed at connecting donors with non-profits via crowdfunding. Shipley and his partner, Vincent Pitetti, shifted their focus in late 2012, soon after the JOBS Act became law and crowdfunding became a mainstream investment strategy. Shipley and Pitetti incorporated CrowdFund Connect with its present name in 2013. Shipley said that “the sites that we’ve launched” under this umbrella since that time, “haven’t really used the JOBS Act since that has yet to be implemented by the SEC.” They make use instead of earlier legal and regulatory mandates to the same crowdsourcing end, though acting in the spirit of the unimplemented law. In May 2014, Shipley and Pitetti launched Healthios Xchange, a marketplace for private equity in the healthcare space, as their first such venture. In the months since, this site has raised more than $350 million for 40 companies.

Source: CannaFundr Merges | Crowdfunding and Cannabis | MJINews

Can Crowdfunding Help Establish the Benefits of Medical Marijuana? | Cannabis Now

Cannabis has been used for centuries for medicinal purposes by various civilizations. Despite this fact, the U.S. Federal Government has classified it at the highest level, making scientific research extremely difficult to perform. Currently the public’s view on cannabis is changing and now over 30 states allow some type of cannabis based products for medical use. While this is certainly a step in the right direction, for cannabis to be truly considered a medicinal drug, guidelines for its use must be established. When doctors prescribe drugs to help improve our health they always tell you when and how much of it should be used to alleviate your symptoms. Currently the bulk of medical professionals are unable to give any such guidelines when they sign off on medical marijuana cards. Determining how and what cannabis based products medical professionals recommend to patients are of critical importance to legitimizing medical marijuana. This point was prominently made during a recent government meeting sponsored by several institutes from the National Institutes of Health, Marijuana and Cannabinoids: A Neuroscience Research Summit, that convened in late March. One of the attendees, Dr. Thorsten Rudroff, is a researcher for Colorado State University. Dr. Rudroff’s study centers around improving quality of life and fatigue in clinical populations, most notably multiple sclerosis. He estimates that about half of people with MS in Colorado are using some form of cannabis to help alleviate symptoms of their disease. While several studies have shown great improvement in pain management and spasticity, or uncontrolled muscle spasms, he says there are still a lot of unknowns about the benefits and negative side effects of cannabis for symptom management. When it comes to determining which products/strains help people with MS the most Rudroff says: “We observe a very expensive trial and error process for persons with MS.” In Colorado, there are more than 2,500 marijuana business licenses in Colorado and more than 600 of them are for dispensaries. That means that there are more dispensaries in Colorado than Starbucks and McDonald’s combined — and the numbers keep growing.

Source: Can Crowdfunding Help Establish the Benefits of Medical Marijuana? | Cannabis Now

The State of Crowdfunding in the Cannabis Industry – Lexology

Financial_MoneyPotLeafFirst Canadian Marijuana Crowdfunding Platform Launched On March 2, Ascenta Finance Corp., a licensed exempt market dealer, and KoreConX Corp., a company that specializes in crowdfunding, launched Bay Street Cannabis (“Bay Street”), Canada’s first online equity crowdfunding portal dedicated to the cannabis sector. Bay Street provides public and private legal cannabis and cannabis-related businesses with access to investors. Like the U.S., Canada’s laws have recently made it possible for Canadians to purchase securities of cannabis companies. The Canadian cannabis sector is clearly moving into the future financing, but what about the U.S.? What is Crowdfunding? In its simplest form, crowdfunding is raising money in small amounts from a large number of people. Various forms of crowdfunding have developed in recent years, including donation-based crowdfunding, rewards based crowdfunding and equity based crowdfunding. Donation crowdfunding entails asking a large number of contributors to fund a project or charitable cause. Rewards-based crowdfunding involves seeking contributions from a large number of people but offering a reward of some sort in exchange, for instance an investor in a bed and breakfast might receive a vacation package in exchange for a donation of a certain amount. Equity crowdfunding differs from the previously described variants because it involves business owners giving up a percentage of their ownership in their company in exchange for funding. Equity crowdfunding allows businesses to gain access to serious investors on a scale that the other types of crowdfunding do not. In the U.S., there are three types of equity crowdfunding. The first type allows accredited investors to view private investment opportunities on a password-protected website. The second type of equity crowdfunding allows businesses to raise an unlimited amount of capital from an unlimited number of accredited investors. The final type of equity crowdfunding allows unaccredited investors to participate in securities offerings. There are more regulatory requirements for companies that allow crowdfunding by unaccredited investors because these investors are typically not as sophisticated as accredited investors. State of Marijuana Crowdfunding in the U.S. The crowdfunding space in the U.S. has not yet seen the entrance of an institutional investment firm, instead the landscape consists of a few legitimate equity crowdfunding offerings and platforms and various donation-based crowdfunding websites. Equity Crowdfunding Regulation D Offering In 2014, CannaFundr, the first cannabis investment crowdfunding platform was launched by CrowdFund Connect. CannaFundr is open to accredited investors and syndicates investments so that investors can participate for a minimum investment of $2,500. JOBS Act, Regulation A+ Offering In late 2015, Med-X, Inc. (“Med-X”), a company that produces cannabis-related products, became the first cannabis company to launch a Regulation A+ equity crowdfunding campaign. Med-X representatives report that the company has raised over $1 million from over 600 investors to date.

Source: The State of Crowdfunding in the Cannabis Industry – Lexology

Med-X Paves Way for Cannabis Industry Growth with Crowdfunding Campaign

Cannabis companies are starting to use a new set of funding regulations to revolutionize the way people invest. And as a result, virtually anyone can now get in on the ground floor of the green rush thanks to Med-X. Last summer, the Securities and Exchange Commission (SEC) came up with a new set of regulations that makes it possible for startups to generate funding by using crowdfunding. The new rules are called SEC Regulation A+, or SEC Reg A+ for short. Here’s very generally how it works: A startup company can run a Kickstarter- or Indiegogo- like campaign where they explain their offerings to the public and attempt to drum up interest from possible investors. But people interested in funding the company don’t actually invest money yet. Instead, they basically add their name to a list of potential investors. The company is then able to use this list as concrete evidence of how many people are interested and how much people are willing to invest. Once the company has gathered all this information, it can then begin selling equity to investors using a licensed broker dealer. RELATED:  Legal Pot Production in U.S. Means Less Profit for Mexican Farmers and Drug Cartels To put it simply, SEC Reg A+ could benefit small-time investors as well as smaller companies by giving everybody a more direct shot at getting into the game on the ground floor. And a few innovative cannabis companies are now taking advantage of all this. In particular, Med-X, Inc. has started paving the way for revolutionary crowdfunding investment in the cannabis space. Med-X is a California-based cannabis company. They focus on developing all sorts of the behind-the-scenes work that goes into actual marijuana cultivation. They also run a publication to educate the public about the marijuana industry. They’ve invented an all-natural pesticide that’s been approved for use on legal marijuana crops. And they cultivate and test cannabis, looking for ways to maximize safety and potency. And now, they’ve launched an SEC Reg A+ crowdfunding campaign. The company sees this as yet one more way to tap into the diversity and huge potential of the broad world of cannabis. Investors of all sizes can now get in on the cannabis industry. And at the same time, Med-X will gain the funding it’s looking for to continue expanding its work to grow revenue. RELATED:  Experts Say Cannabis is “One of Greatest Investment Opportunities of Our Time” “Crowdfunding makes it a lot easier for cannabis start-ups to access the capital needed to grow their business,” explained the CFN Media Group. “But of equal importance, it allows everyday Americans to participate in the enormous potential upside within the cannabis industry.”

Source: Med-X Paves Way for Cannabis Industry Growth with Crowdfunding Campaign

Venture Capitalists Poured $215 Million into Cannabis Last Year

A new study just published by CB Insights found that in 2015, venture capitalists invested a grand total of $215.2 million into startups working in the cannabis space. Those investments took place over the course of 98 business deals. There’s been a lot of talk in recent months about the ongoing “green rush” of the cannabis industry. Some see the whole thing as a fluke that will simply fade off into the sunset, but others see it as the early stages of what could become a huge—and hugely profitable—new industry. In fact, some think the cannabis sector could become such a big industry that they’re willing to invest millions in up and coming marijuana businesses. The report also pointed out that both of those figures are up from the year before. In 2014, VCs invested $97.1 million across 63 deals. RELATED:  Experts Say Cannabis is “One of Greatest Investment Opportunities of Our Time” One of the biggest investments of 2015 came when Privateer Holdings received $75 million worth of funding. Privateer Holdings is a private equity firm that owns a number of legal cannabis companies including Marley Natural, the cannabis company run by several members of Bob Marley’s family. This latest report comes on the heels of a more comprehensive overview of the entire cannabis industry, which was published earlier this year. That report found that the legal cannabis industry has experienced explosive growth over the past couple of years. In particular, it said that 2015 saw a 184% increase in adult cannabis sales. The report estimated that the legal cannabis industry is on pace to rake in somewhere around $22 billion by the year 2020. For the most part, the CB Insights report seems more or less in line with these larger trends.

Source: Venture Capitalists Poured $215 Million into Cannabis Last Year

Crowdfunding Cannabis: Marijuana Start-ups Get the Capital They Need – CannabisFN

The cannabis industry may be booming in terms of revenue, but marijuana start-ups looking to raise capital face a number of hurdles. The traditional banking sector has shunned the industry, despite the Obama Administration’s attempts to open up access. In 2013, Attorney General Eric Holder created a “reduced prosecution safe harbor” for commercial banks, but that’s a far cry from legalization. Banking executives were quick to point out that prosecutorial discretion only works as long as the administration in power supports non-enforcement – and elections are coming this year. Many venture capitalists and institutional investors have been equally reluctant to invest in the sector. MassRoots Inc.’s (OTCQB: MSRT) treatment at the Consumer Electronics Show (CES) and in previous years at Tech Crunch Disrupt is a sign of just how taboo cannabis start-ups remain in the general public. Of course, there are a few notable exceptions including Peter Thiel’s Founder’s Fund, which invested $75 million in Privateer Holdings. These dynamics forced many companies to pursue one of two options. First, companies can undergo an expensive and time-consuming process to try and raise angel investment rounds from high net worth individuals, but that’s difficult because there’s no good exit strategy without VC involvement. Second, companies can list their stock on over-the-counter exchanges, but that involves regulatory hurdles and high costs associated with auditing and making filings. Regulation A+ Crowdfunding Changes the Game For the past 80 years, only accredited investors that make over $200,000 per year or have at least $1 million in assets (excluding their personal residence) could invest in start-ups and the process was difficult, but the so-called Crowdfunding Act is quickly changing the rules. Title IV of the JOBS Act has opened the door for start-ups to raise up to $50 million from the general public under what is called Regulation A+ Tier 2, which was adopted by the SEC and went into effect in June 2015. While it still costs $50,000 to $100,000+ to audit financials and make regulatory filings, the process is far cheaper than the cost of a reverse merger, SB-1 transaction, or traditional IPO that can cost in the millions of dollars. The cost of remaining a publicly traded company are also much lower with Regulation A+ thanks to fewer mandated SEC audits, regulatory filings and other requirements. “The original Reg A had a state-by-state registration requirement and was prohibitively expensive for issuers,” says Darren Marble, CEO of CrowdfundX. “Reg A+ Tier 2 offerings pre-empt state securities registration, which reduces costs for issuers. More importantly, Reg A+ allows for both unaccredited and accredited investors to invest in private companies, and empowers those companies to market their offerings through the Internet.” Michael T. Williams, an SEC attorney with Williams Securities Law Firm, P.A. noted many other benefits of Regulation A+ compared to traditional S-1 offerings, including:

Continue Reading: Crowdfunding Cannabis: Marijuana Start-ups Get the Capital They Need – CannabisFN