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Why Are Venture Capitalists Interested in Marijuana Investments?
Marijuana company Privateer Holdings is raising $75 million in institutional financing for a marijuana startup – a figure it should easily reach within the first quarter of the year. In fact, several venture capitalists are contributing to the effort, including Founder’s Fund billionaire Peter Thiel. It begs the question: Why are venture capitalists so interested in marijuana investments all of the sudden?
Marijuana Payment Solutions are RegressingCurrently, there are no payment solutions for legalized marijuana products. There is only one way to pay – cash. In fact, the state of payments for legalized marijuana has regressed. At Instabill, we briefly had a credit card solution in place, then shifted to a cashless ATM option, but, like many other payment processors, currently find ourselves in s state of limbo. The banking industry is adhering to the federal law which deems the growth, sale and use of marijuana illegal, which explains banks reluctance to process credit and debit transactions for such.
Marijuana Investments Near $75 Billion in US, CanadaBetween the U.S. and Canada, nearly $75 billion was put toward marijuana investments by venture capitalists, according to a Jan. 8 article on TechCrunch.com. One has to wonder: Do they know something we don’t? Over the last year, payment processing for marijuana products – especially in the legal states – has become the talk of the industry. To conduct transactions solely in cash is painstakingly inconvenient and unsafe. A recent piece on 60 Minutes profiled the impact of marijuana in Colorado where shops, warehouses and dispensaries deal solely in cash. The segment did mention possible regulated payment processing options in the future, but how far away? With sudden interest in marijuana investments by venture capitalists, it can’t be too far.
Keeping a Keen Eye on the Marijuana IndustryInstabill believes credit and debit card processing for marijuana will become an option in the near future. As a credit card processor for high risk industries, Instabill already has domestic, international and offshore banks in place for when it happens. To find out more about Instabill’s high risk merchant account options, select the live chat option below or call us at 1-800-318-2713.
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ECS World provides credit card processing services to online and MOTO businesses with its PCI compliant payment gateway solution. Whether you want to process onshore, offshore, or internationally, they have a solution for you!