Raising Cannabis Capital 0055: FinTech Group - Investor

"Cannabis Investor Spotlight" FinTech Group  CEO Ed Corona talks to Dan Humiston about his company's solution to processing cannabis crowd funding investments.  Cannabis companies can now raise capital using crowd funding.

Produced By MJBulls Media

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Dan Humiston:
Support for this show in the following message come from Trevett Hill overseeing a cannabis investment can be time consuming and expensive. Trevett Hill provides cannabis investors with an external turnaround team to help management reignite growth for a free confidential review. Go to Trevetthill.com..

Edward Corona:
Initially they think they could just go to strike or something like that and set up a merchant account when they get the aid that they've got in decline. They're like oh god why I'd hate to think that this was going to happen. But this was the basic. Well let me do your paper and then think I got that paid. How did it. So then I'm like Well where do I go.

Dan Humiston:
From Buminit media it's the MJ bulls podcast a show about Raising Cannabis Capital. I'm Dan Humiston. Today's show how processing investors payments is helping cannabis companies unlock crowdfunding as a way to Raising Cannabis Capital.

Dan Humiston:
Today in the cannabis investor Spotlight Series we're joined by Edward Corona from the fintech group. Thanks for being on the MJBulls Podcast.

Edward Corona:
Glad to be here.

Dan Humiston:
Yeah I was reading through your Web site and you created this payment process platform and it's sort of just fell into place when regulations changed in 2012 and you're perfectly positioned for helping companies with their crowdfunding is that correct.

Edward Corona:
Yeah that's correct. When the JOBS Act came out in 2012 we really carved out quite a niche for ourselves. So within that industry with our platform.

Edward Corona:
So for our listeners really the next step after the friends and family round a lot of people go right to seed round. But there's a there's a step in between that really could be probably is beneficial and as easy to do as anything and that is crowdfunding. So maybe you can talk to us a little bit about this phase and how your company provides a solution for this phase.

Edward Corona:
Yeah sure what my company does is what a lot of these issues were doing when they set up their offering and the whole reason behind crowdfunding is to go directly to the crowd directly to the investor with the offerings that are that are available right now you are able to do advertising and reach out to those investors without violating any type of FINRA regulations. So that puts the issuers in a very good position to reach out directly to the crowd and advertise their offering when the investor goes to their website or wherever they direct them and they want to invest into that company. What our platform does is it allows that investor to easily at the time that they're feeling the investment to fund the funds over and invest in the company. We do everything in real time.

Edward Corona:
So we have an Invest now buy in or reserve shares in depending on the type of oil offering and the investor can do it right there on the spot green light which is amazing because as my listeners already know this but for anybody who's new to this show in cannabis we can't use PayPal we can't use a lot of the credit card processing systems that most industries don't struggle with. So this is a real challenge right.

Edward Corona:
Absolutely and that's the market that we identified and our solution serves that need.

Dan Humiston:
So if somebody wants to make an investment let's just walk us through the process. I'm an investor. Well let's start with the issuer. I'm a company I'm raising capital. I put the word out on through my advertising channels that I'm raising money. Take it from there.

Edward Corona:
So at that point when an investor wants to make an investment in that company they would put money in back. Now buy the invest now buy and would collect the information that we need their information their dress their outback information where they want to make the payments and then they would hit submit at that point what my system does is we verify that if they are legitimate bank account through our verification system and then we process that transaction. So it works very similar to an AC H type of platform. But the main difference between us and the ACA is we have far more verification and we deposit those funds the following business day into the insurer's business account. There's not a three to five day delay that you would get in your traditional type of HGH platform. We also are for additional options they can do it online. The issuer can take the information over the phone and they can do it that way. They can even send an email or text messages or text message invoice and the investor can up their investment that way.

Edward Corona:
So it's very streamlined and everything's done in real time so we get that much quicker.

Dan Humiston:
Want to do a quick thank you to one of our former guests blaze which is a cannabis technology company with software for dispensaries distributors. And coming soon manufacturers and cultivators. Listen MJBulls episode 33 recorded blaze.me learn how you can be part of their expansion.

Dan Humiston:
And now back to the show and you mentioned that you do some sort of backgrounding or verification that the accounts are legit or there may be suspect can talk a little bit more about that.

Edward Corona:
Yeah. When I verification process does and is we look at a couple of things as soon as that person checks out and it clicks on the authorization we are run it through very fast databases that we work with and what those databases do is first of all they verify that it's a legitimate USA bank account. So that's the first part. It's not. Well then maybe they check that out after that's verified. What we do is our database called the positive and negative data on where the funds are coming from on the bank with the funds are coming from but there's negative data on that account. We have an alert system which would alert the issuer that we collected that information and there's about 200 different types of verifications that replace what the issuer can do at that point as they can choose to override it if they want to take a chance on that. There's a good chance that those funds will not clear. So if they want to get on the phone or if they want to work to further verification on their debt they can do that or they can just decline it if there's positive information on the account of streamlined and it goes right through and there's no other it's just the positive to follow business.

Dan Humiston:
Okay. We've been speaking with Ed Corona from the fintech group in all of his information. Fin texts email address and Ed's email address and fintech Web site will be on the MJBulls Web site. But this is a great solution for people that are considering doing crowdfunding or stitcher cannabis companies that are considering doing crowdfunding because I know a lot of people talk to me about crowdfunding and they don't even know where to begin. They're just like it's voodoo science. No one even like everyone is like wow I want to do it and everyone else is doing it but I don't. I think that you make this it seems like you make this really simple right.

Edward Corona:
Even if you have the money the whole 58 crowd funding right now is market and you can spend a lot of money in marketing and marketing that offering and you'll get it out there. The marketing is out there and it's available. You can raise funds by doing it but people love a lot. They say well OK now that I have this in place how do I get the money. Do I get to you know have these people send a wire to me. I mean initially they think they could just go to stripe or something like that and set up a merchant account and when they got a program that they said decline they're like oh god why I would hate to think that this was going to happen. I thought this was a basic. Well let me do your paper. And then they find out that people are going to be able to do that. So they are like Well where do I go. Anyhow they start structuring and you know people find it that way but mainly they find us for being referred to us through one of the sources.

Dan Humiston:
Well the show should drive to more attention to it more eyes to your site. And is there any last words you like to leave with our listeners before we sign off.

Edward Corona:
Well that sums it up pretty well locked down and they have any questions.

Edward Corona:
Visit my website at green tech work merchant dot com and we get a there's a lot of information there and I'm always available if they want to be just me by Boehner. Schedule a board meeting. I'm happy to do that in answer any other questions that they may have.

Dan Humiston:
Sounds good. This is a really I think necessary solution to another problem that we have in the cannabis industry so thanks. So. Thanks for coming on this show and explaining this to us.

Edward Corona:
You bet Dan. Thanks for having me. I appreciate it.

Dan Humiston:
You're welcome. Good luck.

Dan Humiston:
Just a quick reminder that you can become an MJ MJBulls member for just four dollars and ninety nine cents per month and enjoy exclusive access to companies pitch decks and the MJ MJBulls cannabis capital directory joined today at MJBulls.com.

Dan Humiston:
Thanks for listening to the MJBulls Podcast. To learn more about today's guest or to become a guest.

Dan Humiston:
Visit our website at MJBulls Podcast. Today's show is produced by Buminit media with original music composed by Jamie Humiston i'm Dan Humiston. You've been listening to MJBulls Podcast.

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