As the cannabis industry continues to develop, investors are shifting their focus and becoming increasingly selective in evaluating opportunities. As markets evolve and regulations become more complex, the nature of what attracts investors is changing, especially in states with established markets like Colorado and Oregon.
Ahead of the Benzinga Cannabis Capital Conference, GrowGeneration CEO and co-founder Darren Lampert shared his thoughts on what investors are looking for in cannabis companies today.
Profitability and sustainability take center stage
As the cannabis market grows, profitability has emerged as a key factor for investors. Lampert emphasized that the boom-and-bust cycles seen in early cannabis startups are prompting a shift in priorities. “Investors are now prioritizing companies with sustainable business models and realistic profit margins,” he explained. He says a proven path to profitability, or a clear strategy for achieving it, is essential for companies that want to secure investor interest.
Size and market presence are important
Another factor attracting attention from investors is the ability to scale efficiently, especially in states with mature markets. There is growing interest in companies that have successfully expanded operations in states such as Colorado, Oregon, and Illinois.
Lampert noted that powerful multi-state operators (MSOs) are particularly attractive. “Brands with strong multi-state operator models are also attractive, especially those that can manage complex regulatory landscapes,” Lampert said.
Unique products and brands attract attention
In an increasingly competitive industry, companies that offer something unique stand out. He says differentiation through unique products, such as unique cannabis strains, formulations and technologies, is key.
Lampert emphasized that branding also plays a key role, as companies gain a competitive edge by building emotional connections with consumers. “Investors are interested in companies that offer unique products,” he said.
Industry leaders and investors will be paying close attention to how these developments play out as the Benzinga Cannabis Capital Conference approaches.
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