Forbes said it best when they referred to marijuana crowd funding being a multi-billion dollar industry to say the least. This multi-billion dollar industry will undoubtedly go over so big it will be like winning the lottery for many investors who invest fast & wisely. To spark further excitement most investors are finding out very quickly the mark up on marijuana accessories is a whopping 500% and that puts the margin at 500% plus! You really can’t lose if you go with the flow…kind of like coke vs. pepsi you are and will always be a head of the game with your investment. It is nothing more than tweaking marijuana accessories into a more viable and accessible product for the consumer. Soon, you will see small store fronts popping up on every corner selling marijuana accessories and then you will see it spawn to the major retailers to boot.
Moreover, you will see internet start-ups such as MarijuanaAccessories.com jump to the top of the rankings on Google hogging all the keywords for every accessory on the market. MarijuanaAccessories.com is projected to make 100,000 per year in net profit margins making the domain name MarijuanaAccessories.com valued at 3 x multiple of 3.6 million. Yes, Legalize.co owns MarijuanaAccessories.com along with many other web properties. Investors are strange birds sometimes and like to see tangible numbers when it comes to investing their hard earned money. Investors who do invest in marijuana crowd funding are the kinds of people who love adventure and want to be the first to get on things while the getting is good. After all, anyone who invests in marijuana crowd funding should be the kind of person who is looking at it from the old “gold rush to the new green rush” affect.
When investors take the plunge into new start-ups it is important to realize that current news is one reason to be a good listener and by keeping up on the legalization of marijuana will certainly keep the investor salivating at the opportunity to invest in marijuana crowd funding. One question that looms in the minds of many investors, “Is it legal?” Well, yes and no! Of course, there are many variations from state to state but we must tell you at this point cannabis is illegal in nearly all aspects from the federal level. However, we do expect to see changes in the federal law as it relates to the legalization of cannabis in the coming months. Why? Well, it is simply put…the people make the laws not the federal government. Since the states of Colorado & Washington have spoken and have legalized the use of recreational marijuana on the state level you can bet your sweet bippie there will be others states jumping on the chance to legalize it in their jurisdictions as well. Why? Again, it is simple, it is called cold hard green cash! The manufacturers of marijuana accessories will be in the billions….the distributors will make money in the billions….and states will fill their coffers with billions of dollars of tax revenue.
Marijuana crowd funding means big business for investors all over America: After residents of Washington State and Colorado voted in marijuana legislation into law more liberal than Amsterdam’s, the plant has become a substance no more controlled than the liquor industry. A big booming industry is emerging; just don’t expect to see owners of dispensaries dancing in the streets — after all, they’re still breaking federal law or at least for the time being…lol. Below, a state-by-state look at the tax revenue potentially generated by legalization, the drug’s for-sale status, and three successful start ups. Marijuana crowd funding will be by far luring major players and investors to the table investing in marijuana accessories from all corners of the world. Marijuana crowd funding is something that was once a dream but now a reality when it comes to actually attracting viable investors.
If you want to get an idea where things are headed, look at the travel list of the leading crowdfunding advisory team, Crowfund Capital Advisors. Recently, they’ve visited Colombia, Canada, Mexico, Italy, Turkey, Sweden, and Dubai, with upcoming visits to Singapore, Malaysia, Hong Kong, and Sydney. They’ve also secured a relationship with the World Bank to study crowdfunding as a way to unlock innovation in developing countries.
Think about the implications of shifting just one percent of long-term investments to small business via crowdfunding. In American alone, that would create a $300 billion market for crowdfunding (10 times the venture capital invested in all of 2011).
Indicating where things are headed, for accredited investors there is IRAvest, the Internet’s first equity-based crowdfunding portal specifically created for self-directed IRAs.
Now imagine the general public investing in crowdfunded small businesses through fund vehicles (as I blogged about in the 2010 three-part series, “The New Face of Venture Capital”) or individual investments. That’s a huge transformation in the small business financing landscape.
At the one-percent mark, globally this translates to more than a trillion dollar market. And how big is one percent? The average volatility of the S&P 500 was 0.62 percent from its inception in 1957 through 2010.