Debra BorchardtFebruary 8, 2023
Not having to do a venture cap dance is enticing to those needing money.
ArcView Archives - Green Market Report
Debra BorchardtFebruary 8, 2023
Dave HodesOctober 13, 2022
Analysts and investors continue to help expand the psychedelics industry.
StaffMay 16, 2022
Arcview Capital today announced the launch of its equity crowdfunding platform which is expected to go live by the end of the second quarter. The platform is currently accepting applications and will focus on cannabis and other adaptogenic plant-based businesses like psychedelic plant medicines.
“We’re excited to continue to be a thought leader on investing and capital raising in this industry. Our goal is always to provide new services that best support the business of cannabis,” says The Arcview Group’s CEO Jeffrey Finkle. “Today, Arcview Capital expands the power of our ecosystem with this new financial vehicle, benefiting companies seeking private investments in an environment where risk needs navigation but the opportunity is nearly limitless.”
With the addition of this full-service crowdfunding platform, Arcview Capital said it continues to expand upon its strategic partnership with trusted industry leader, The Arcview Group, to make investing in cannabis and other plant medicines uniquely simple.
“This is a full-service crowdfunding platform that is focused primarily on the cannabis industry. We are, to our knowledge, the first broker-dealer to offer such a focused crowdfunding platform in cannabis,” adds Arcview Capital CEO Philip Rothman. “Since its official introduction as a financial vehicle in 2015, crowdfunding has become a major force in raising funds, surpassing $2.5 billion in equity raised in the United States. It’s ideal for the cannabis space as crowdfunding enables both small and large investors to buy an interest in a company and support that company as it grows. With this launch, we further expand the capabilities of the Arcview ecosystem to support our clients where they need it most.”
Arcview Group was created in 2010 by Troy Dayton and Steve DeAngelo. It raised millions of dollars for cannabis companies through its investor network. Back in 2010, cannabis companies mostly had to turn to private money for funding and investments and Arcview was the leader in the space. Dayton had been the long-time CEO but he was replaced with Kim Kovacs, who has since moved on to Santa Fe Farms. Finkle was named CEO in June of last year. Finkle led Arcview Ventures as CEO and co-founded The Arcview Collective Fund in 2018.
The company has experienced numerous changes and now the Arcview Group is a parent to several segments, each with its own focus. Arcview Capital, Arcview Consulting, Arcview Events, Arcview Ventures, and Arcview Marketing Services.
Taneia SurlesMarch 22, 2021
The cannabis industry has exploded in the last couple of years due to the legalization of the plant in many states across the country. While the growth of this often-stigmatized industry is fantastic, there are still many problems that need addressing. One of those issues is diversity and inclusion amongst cannabis businesses. Minorities such as people of color and women share only a tiny percentage of CEO positions in the cannabis industry. Fortunately, many companies are taking the initiative to change this narrative by creating spaces for this minority population to thrive in the cannabis industry.
The Arcview Group, whose Chief Executive Officer is Kim Kovacs, aims to change the political climate regarding the cannabis industry. As mentioned earlier, cannabis is heavily stigmatized by many American politicians, and the lack of country-wide legalization has led to significant incarceration rates for possession of the plant. The Arcview Group expands into other cannabis-related companies, such as The Arcview Investor Network, Arcview Market Research, Canopy, Cannasure Insurance Services, and many more.
Earlier this month, The Arcview Group’s Women’s Inclusion Network partnered with Women Empowered in Cannabis (WEIC) to create a more inclusive environment for women in the cannabis industry. The companies’ collaboration is a program that will benefit members of their organizations collectively. Members of both organizations will be able to network with other like-minded individuals to expand their cannabis business. This initiative’s timing could not be more perfect, given that this month is Women’s History Month.
The partnership between the Women’s Inclusion Network and WEIC aims to create new spaces for women to receive equal opportunities for growth and funding in the cannabis industry without the many unnecessary hurdles they often have to overcome.
“Together, we’re working to make this industry more inclusive. We want everyone, women, and men, to have equal access to capital, shelf space, board seats, C-suite level opportunities, education, and deal flow,” says Laura Toomey, the Chief of Staff of The Arcview Group.
For those looking to start or build their own cannabis business, strong network connections can help them raise funds for their budding business and provide them with the support needed to be successful. Thankfully, the Women’s Inclusion Network’s and WEIC’s new partnership strives to help female cannabis owners thrive in their businesses.
“A powerful network can open doors to funding and other support necessary for a successful business. By sharing our network, the Women Empowered in Cannabis community enables more women to step into a place of empowerment in their businesses,” states Kyra Reed, the founder, and CEO of WEIC.
A joint membership between the Women’s Inclusion Network and WEIC will include the following:
- Exclusive webinars
- Mentorship sessions
- Educational video series
- Speed-networking opportunities
- Virtual speaking events
- Online job board
- Site tours
The collaborative program will also include keynote speakers who will speak on various topics such as finances, marketing, supply chain, networking, and much more. Also, the programs from the programs will contain Legacy Employees, which can help new businesses enter and compete in the cannabis market.
The joint membership for the Women’s Inclusion Network and WEIC starts at $600 per person. If you want to learn more about the initiative or become a member, you can visit the website here.
Debra BorchardtJune 9, 2020
Legal cannabis sales continue to grow despite the strength of the illegal market. The new State of Legal Cannabis Markets report from The Arcview Group highlights the strengths of the industry going into 2020, while also acknowledging the challenges ahead.
Arcview partnered with analytics firm BDSA and is forecasting that worldwide spending on legal cannabis will grow 38% to $20.4 billion in 2020. Despite this, the lions share of purchases occur in the illegal markets. The report estimates that in 2019 $214 billion was spent in the illicit channels, while $14.8 billion was spent in the legal market.
This had been one of the biggest arguments for legalizing marijuana. Activists promised that if cannabis was legalized, then the illicit market would crumble because consumers would want to support legal businesses and enjoy the tested products with lots of variety. Instead, states that have enjoyed legal adult-use cannabis for at least five years continue to see 30-50% of sales occur in the illegal market. It would seem that this would not support more legalization, but it could have the opposite effect.
The report suggests that high taxation resulting in higher prices for product in the legal stores is the biggest hurdle. It said, “Local regulators could lower tax rates and/or relax regulations in pursuit of a quicker reduction in illicit-market sales, driving more legal spending and ultimately more tax revenue.”
This will be harder than it sounds. Oklahoma opted for a typical sales tax of 4%, while Washington is at an eye-popping 39%. California attempted to keep cannabis taxes from increasing, but it was blocked. It seems the state is pleased with the money it gets despite the effect it is having on pushing customers to cheaper options.
COVID’s Silver Lining
The COVID-19 pandemic certainly affected the industry for the first half of 2020, but the lingering effects will still be felt throughout the rest of the year. Cannabis was deemed an essential service in many states, but that didn’t mean all companies thrived under that designation. The report suggests that a recession starting this year could have short-term impacts that could be dire for some cannabis companies. Still, there could be a silver lining.
“State tax shortfalls due to recession could prompt more legislatures to proceed with cannabis legalization sooner rather than later,” read the report. It has the support of the population. BDSA’s fourth-quarter Consumer Insights study determined 29% of Americans already consumer cannabis. States that legalized cannabis also experienced an increase in cannabis consumers. In other words, passing new legislation would be popular and in turn increase, the tax revenue as more consumers come into the industry.
New Legalization
The flip side to COVID and new legislation is that with quarantines in place, it’s hard to push through new legal states even though it’s a big election year. 2016 was a big year for new states, but 2020 looks to be less so. Only three states have initiatives on the November ballot. Mississippi for medical use, New Jersey for adult use, and South Dakota for both. With limited federal aid, Governor Cuomo is considering cannabis legalization as a key strategy to generate crucial revenue streams for NYC and the entire state.
New Jersey had tried to pass legislation in 2019, but couldn’t get the three-fifths majority needed from legislators. Now the state is letting voters decide and it is expected to pass. That means sales could begin in 2022 or sooner. The report forecasts that New Jersey could jump from $107 million in 2019 spending to $1.3 billion by 2025.
The issue of federal illegality still looms over the industry. All the legislation that looked promising has stalled. While some thought President Trump might make a legalization move to garner support as his popularity declines amongst his base, he has not signaled any such effort. The Democratic nominee Joe Biden has taken a moderate approach and according to the latest CNN poll, looks to be leading Trump. However, COVID and racial injustice issues look to be the hot button issues, pushing legalization to the back burner
Video StaffOctober 4, 2019
Green Market Report thanks the ArcView Group for allowing us to tape Marijuana Money from their event this week.
Constellation Brands (NYSE: STZ) wrote down its Canopy Brands (NYSE: CGC) investment to the tune of almost half a billion dollars. Constellation, which also owns Modelo beer and Robert Mondavi wines, said its share of equity losses from its roughly $4 billion investment came to $484.4 million.
Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) has completed an all-cash transaction to purchase a majority stake in sports nutrition company BioSteel Sports Nutrition Inc. The amount of the acquisition was not disclosed. The deal gives Canopy a significant entry into the sports nutrition and hydration category and lays the groundwork for cannabidiol (CBD) products to be sold in the U.S.
Venture capital firm Canopy Rivers Inc. (TSX: RIV)(OTC: CNPOF) completed a $10 million investment ( in TerrAscend Canada Inc., a subsidiary of its portfolio company.
Gotham Green Partners has invested an additional $20 million in iAnthus Capital Holdings, Inc. (CSE: IAN)(OTCQX: ITHUF) through the purchase of senior secured convertible notes. Green Gotham said it was part of a broader $100 million financing plan to support the buildout of all existing markets in which iAnthus currently operatesTerrAscend Corp.
TILT Holdings Inc. (CSE: TILT) (OTCQB: TLLTF) has negotiated an agreement with six of its remaining founders regarding the immediate forfeiture of all 60,217,088 stock options granted at the time of the merger. Adjusting for the subsequent forfeiture, TILT’s Q2 2019 net loss of $48.9 million would have been almost entirely reduced, bringing the Company close to break-even.
Fire & Flower Holdings Corp. (TSX: FAF) its financial results for the second fiscal quarter ending August 3, 2019, with total revenue of $11.1 million versus $9.5 million for the same time period in 2018. The net loss for the quarter was $6.4 million.
High Tide Inc. (CSE:HITI) (OTCQB:HITIF) announced financial results for the third fiscal quarter of 2019 ending July 31. Revenue in the third quarter increased by 281%, to C$8 million from C$2 million last year.
48North Cannabis Corp. (TSXV: NRTH) delivered net revenue of $4.8 million marking 48North’s first full year of revenue, but a net loss of $8.1 million. In fiscal 2019, the company raised over $48 million and at the end of the year had $52.7 million in cash and cash equivalents on hand.
Arizona-based DNA testing technology company PathogenDx, Inc. announced $7.5 million in Series B funding.
And finally HeavenlyRx Ltd. Acquired CBD company PureKana.
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