NEW YORK (MainStreet) After pitching to potential investors at three ArcView Investor Network events, Ebbu CEO Dooma Wendschuh closed a $2 million round of financing three months ago for his cannabis distillery company.
"Every penny that we've raised has been as a result of ArcView," said Wendschuh, who returned to an ArcView Investor Network conference last month in Denver.
"We're here as a sponsor and to increase awareness of our brand," Wendschuh told MainStreet. Start ups such as Ebbu have received $10 million in known financing deals in the past 16 months, according to ArcView CEO Troy Dayton.
"We have 250 high net-worth accredited investors, which places us in the top ten for all angel investment groups not just cannabis," Dayton said during his opening presentation in the Seawell Grand Ballroom at the Denver Center for Performing Arts. "There's this marked shift in caliber, progress and professionalism each time ArcView meets."
CannaBuild and Hydrogarden Industry Innovations were among the pre-selected entrepreneurs who pitched investors on stage in ArcView's "Shark Tank"-like forum.
"We are up to $225,000 since our first ArcView pitch," said Zachary Marburger, co-founder and CEO of CannaBuild. "We are building a digital support application for cannabis businesses. The bud tenders and retailers are the first line of communication. We are standardizing the process to make it more compliant and uniform."
During his pitch, Hydrogarden Industry Innovation's Josh Mezher informed potential investors about his turbo trimming product designed for growers to cut cannabis roots. "90% of our customers are still using scissors," Mezher told the audience. "We are aiming to raise capital to fill 10,000 orders. Turbo trim allows customers to do what they are doing now but 35% faster and 95% easier."
In the exhibition hall, Grassp company executives demonstrated how their Uber-like marijuana delivery app works.
"The Grassp platform is accessible on tablets, smartphones and laptops to verified patients," said David Johnson, CEO and founder of Grassp. "We are looking for strategic partners with an ability to grow this company further beyond California. When Apple turned us down eight months ago, we decided to expand on the platform and to build software for doctors and service providers. We have android launching next month."
The last ArcView Investor Forum was in April in Boston where marijuana is not yet legal but in Denver recreational use was legalized on January 1 of this year, making the gathering especially meaningful for newcomers to the industry.
"There are cannabis leaves in the table centerpieces sponsored by Surna," Dayton told his audience of investors and entrepreneurs about Surna, an ArcView sponsor which develops climate cooling systems for growers. "How great is it that we don't have to hide? It's a remarkable moment in time."
In other words, it's a new day in marijuana history.
--Written by Juliette Fairley for MainStreet