Marijuana Business Magazine October 2018

Q What’s your top tip for best judging the credibility of valuations? A Entrepreneurs want a premium, and investors want a discount … because of (the legal status of) cannabis. If investing in the cannabis industry isn’t your full- time job, and you are confused about the credibility of the valuations you’re seeing, then you need to build your network and ask other investors for help. With 80 company launches and 100 investments, we can usually build a reasonable valuation from existing comps in our portfolio. Other investors are using MRR (monthly recurring revenue) to zero in on a valua- tion. Ideally, a valuation should be justified by at least three valuation methods that triangulate on approxi- mately the same number. Q What products or sector are you most excited about? A I’m excited for growth in the hemp industry in 2019 and beyond. I’m also closely watching how the fed- eral government will handle legalization. Which agen- cies will be tasked with regulating this sector? FDA? Department of Agriculture? FTC? Who gets a seat at the table will significantly impact how the hemp market evolves, and how quickly it grows. Q You recently launched CanopyVentures. Can you offer an update? A CanopyVentures has made two investments so far: BDS Analytics and PathogenDX. They are both great examples of the CanopyVentures model: excellent teams, strong corporate governance, openness to input and the commitment to grow into $100 million- plus businesses. Q What is one of your top investment goals for the next year? A Work with both early- and growth-stage companies via the CanopyBoulder accelerator and incubator cohorts in 2019. We’ll be running an incubator pro- gram in 2019 as well as an accelerator program. Not much will change with the four-month accelerator program, but in reaction to demand from growth- stage companies to work with us, we plan to run an incubator program in the fall. ◆ This interview has been edited for length and clarity. INTRODUCING THE BUD GOBLET ™ Frosted Sativa Indica Hybrid Now Available! PATENT PENDING