You Can Invest in This Cannabis Startup With $100 Minimum

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

In 2012, after voters passed a ballot measure, Massachusetts became the 18th state to legalize medical marijuana. In 2016, a similar ballot measure legalized recreational marijuana in the state. 

As a result of these permissive laws, the marijuana industry in Massachusetts is exploding. Between Nov. 20, 2018, and Jan. 20, 2019, consumers spent close to $24 million on marijuana products.

Investing In Cannabis Startups: If you want to invest in some of the small but fast-growing businesses in the Massachusetts marijuana industry, the good news is you can with crowdfunding platforms. Crowdfunding — a practice that pools small amounts of capital — lets retail investors tap into this nascent market. 

You have several options to choose from when selecting crowdfunding platforms such as Republic and StartEngine. While those platforms are focused on larger venture deals, Mainvest is one equity crowdfunding platform that lets anyone invest in local businesses. 

Mainvest is raising funds for Eastcoasterdam. Eastcoasterdam will use the funds it raises on Mainvest to construct and launch Eastcoasterdam Gardens Cultivation Facility & Brand. The project, located in Winchendon, Massachusetts, will be a cultivation and extraction company serving the northern Massachusetts region.

The company will be built out over the next couple of months and will offer investors a share of Eastcoasterdam’s annual gross revenue. $234,906 of the funds raised will be used to build out the new facility, while $14,994 will go to Mainvest as compensation. 

Eastcoast estimates that it will see $2,719,957 in revenue during its first year of operation. The company estimates this figure will rise to $5,758,313 in five years. 

Investment Risks: The investment comes with a few risks that are worth noting. Cannabis is still criminal under federal law, and regulations may hamper cannabis adoption. Given the federal regulations, many banks are unwilling to do business with cannabis companies. 

Investing in cannabis is riskier than investing in bonds, so you may lose your money. Securities law also prevents you from selling your investments for 12 months after acquisition.

How To Invest: Despite the risks above, an investment in a Cannabis company may be worth it. With Maininvest, you can invest as little as $100 in the cannabis opportunity and the process is simple. 

Visit the Mainvest site to view this offering as well as other companies on the platform.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.