Step 3: Add them to the list
Once you have found that an investor is interested in your market, add them to your list of leads. I like to add a few additional details for each lead-a link to their profile, their interest in the market, and their current company/position.
115
Manufacturing: Infused bath salts, terpene-infused cannabis beer and slow-release topical patches are just a few of the recent innovations in the infused products category. In the short to medium term, one can expect positive margin impact from cultivation technology innovation.
Testing: Testing involves the scientific measurement of cannabinoids and includes microbiological analysis, pesticide screening and residual solvent detection. With a deep taproot and miles of secondary roots, cannabis is an effective bio-dynamic accumulator plant and gathers micronutrients, macronutrients and minerals to store in its leaves. Labs are enjoying escalating demand and healthy margins as legalization has made testing increasingly mandatory.
Distribution: Distribution is an asset heavy sector focused on the process of moving product from business to business. Relationships are as important as effective logistics in driving market share; expect heavy consolidation in this sector over time.
Retail: Gatekeepers to consumable cannabis products, storefronts and delivery provide ease and enhance the consumer experience. While we expect brick and mortar retail to experience its laden challenges over time, this sector has a generous runway to educate new consumers and to evolve the consumer experience.
Ancillary Portfolio Sectors
Real Estate: Collateralized hard assets with profitable tenants add outsized return potential to a mature investment market. Dedicated and sophisticated capital sources benefit from healthy current income in addition to long-term capital appreciation.