Investor Confidence In Cannabis Is 'Amped Up' As VCs And Private Equity Firms Shift Perception, Expert Says

As regulatory changes loom for the cannabis industry, investor confidence is seeing an upward trend.

Kevin Hart, founder and CEO of Green Check Verified, has observed a significant shift in the industry's investment landscape, with growing interest from venture capital and private equity firms that were previously hesitant to get involved.

This newfound optimism is a promising sign for cannabis businesses looking to secure funding and stabilize a challenging market, he says.

Hart, who will speak at the Benzinga Cannabis Capital Conference in Chicago, emphasized that this surge in investor confidence is linked to the industry’s evolution and the progress being made on regulatory fronts.

“Investor confidence is pointing upwards,” Hart stated, noting that rescheduling efforts and the potential for safer banking drive this momentum.

New Players Enter the Cannabis Space

According to Hart, one of the most noteworthy developments is the influx of new investors entering the cannabis market. “The type of investors, both on the venture capital and private equity side, has amped up in the last six months,” Hart explained. This trend is fueled by a growing belief that the federal rescheduling of cannabis is moving beyond mere discussion and toward actual implementation.

As the regulatory landscape changes, more investors are seeing the cannabis industry’s potential, Hart observed.

“The groundswell belief system that rescheduling has moved past conversation points” is bolstering confidence, Hart said. This shift in perception draws in investors who previously viewed the industry as too risky.

Banking and Capital Access: Challenges Remain

Despite the increasing optimism, Hart cautioned that significant challenges exist, particularly in banking and capital access. “Banks exist to lend money,” Hart noted, pointing out that as traditional banking services become more accessible to the cannabis industry, capital flow should improve. However, he acknowledged that progress has been slower than expected.

Hart also highlighted the complexity of upcoming regulatory changes, particularly the Safe Banking Act. He explained that while the Act could help improve access to banking services, it won't be a cure-all for the industry's financial challenges. “Safe is an opt-in model, while safer is an opt-out model,” Hart said, suggesting that the regulatory landscape might become even more complicated before it simplifies.

Looking Ahead: Benzinga Cannabis Capital Conference

These insights from Hart come at a crucial time for the cannabis industry, where regulatory changes and investor sentiment intersect. The Benzinga Cannabis Capital Conference will be a key forum for discussing these developments, bringing together industry leaders and investors to explore the path forward.

The conference, which has attracted thousands of participants in its previous editions, offers a unique opportunity for attendees to gain practical insights and connect with key decision-makers in the cannabis space. With experts like Hart sharing their perspectives, the event is poised to be a must-attend gathering for those navigating the complexities of the cannabis industry.

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