The 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
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
We all vote with our money. Every dollar spent is a vote for this brand over another, this chain, this item, and it speaks volumes about how we think, what we value, and what we want to do. I often wonder if there’s anything I’d do differently if I thought about my ‘votes’ actively and continually. What would I really want to vote for? This side of the transaction is never really explicit, or hasn’t been, and I think that the cognitive flip of this past decade towards conscientious purchasing is one of the things that originally drew me to equity crowdfunding. Entrepreneurs can mobilize the crowd, ask them to “vote for me!”, and come out with the resources they need to grow. That’s the very definition of empowering your audience. The Cannabis industry has a big, bright, and bold future, with legalization picking up steam in Canada, and the current party having been elected with a campaign promise to legalize recreational marijuana use. Stocks surged, testament to investor enthusiasm, and forecasts predicted a potential $5 Billion market. Canada’s Cannabis entrepreneurs are ready to scale up, and Bay Street Cannabis is here to help. So it’s clear that there is the will, interest, and capital available to help the Cannabis industry reach its potential. Enter equity crowdfunding, and Bay Street Cannabis. Some 43% of Canadians aged 15 or older have used marijuana, according to Statistics Canada, and current use for medicinal reasons is almost an $100M industry on its own. In essence, the potential for growth is huge, and new entrants into the market are inevitable.
Source: Bay Street Cannabis Brings Equity Crowdfunding to the Cannabis Industry – Crowdfund Insider