Big Cannabis Data on MicroVentures

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Henry Finkelstein: [00:00:23] And most importantly this is now one hundred seventy seven incremental individuals who are deeply invested. I mean have literal skin in the game from a financial standpoint in the success of our business and that that many more advocates on the streets thinking about talking about and relaying the story of cannabis big data. So I think there's a lot of value above and beyond just the dollars.

 

Dan Humiston: [00:00:46] From MJBulls Media it's the Raising Cannabis Capital show. I'm Dan Humiston. And on today's show we're launching a new mini series about cannabis crowdfunding with two companies one that's in the middle that cannabis crowdfunding campaign and the other that's hosting their campaign.

 

Dan Humiston: [00:01:16] Today in Raising Cannabis Capital we are starting a new series about cannabis crowdfunding and to kick off the series we are joined by two former guest Henry Finkelstein from cannabis Big Data and Brett Andrews from micro ventures. Hi guys.

 

Henry and Brett: [00:01:31] Hi there. How's it going there.

 

Dan Humiston: [00:01:33] It's going great. It's going great. And you know for you guys snuck one in on the four hour avid listeners you may have already connect the dots. But when Henry was on the show he said cannabis Big Data was working on raising capital but he wasn't. And then Brett was on like a week later and he was telling us that micro ventures was super close to doing their first cannabis crowdfunding deal. Well you probably guessed it micro ventures first. Cannabis crowdfunding company is cannabis Big Data. Good job guys in that let the cat out of the bag.

 

Henry Finkelstein: [00:02:09] Thank you. It's an honor to be the first on the on the platform.

 

Dan Humiston: [00:02:13] I bet it's all seriously guys congratulations this is I mean it's not just exciting news for you it's exciting news for the entire industry because crowdfunding is by far the number one question that our listeners email us about. I'm going to start with Henry I want to just just jump right into it two quick questions. With all the cannabis fundraising options why did you select crowdfunding. And number two is why did you decide to work with micro ventures.

 

Henry Finkelstein: [00:02:41] Yeah that's a great question. Thanks for asking Dan. Crowdfunding is a very interesting choice for venture because it's relatively new. It's only within the last I want to say five years that the regulations have allowed I think even four years break and correct me if I'm wrong but it's just recently that the rules have changed to allow for this type of crowdfunding. So it's a relatively new entrant to the market and from that perspective is interesting to us. I have experience in the past working with crowdfunding campaigns and actually in University wrote my senior thesis on peer to peer lending network that functioned in ways that are similar to a crowdfunding campaign. So I have a personal affinity to it and perhaps most importantly I saw it as another acquisition channel for venture into the business. Now having been out there and raised funds in a more traditional venture capital context this is a different beast and it has pros and cons but it's a completely different avenue for generating operating capital. We thought that was a valuable path to pursue and as it relates to micro ventures Well truth be told micro ventures actually reached out to us and I'm so glad they did because it's been fantastic to work with them in reviewing lots of different options for crowdfunding campaigns. We saw that micro ventures had a pretty good track record. And after starting the process with them their due diligence process was very rigorous. I was actually rather impressed with the specificity and how granular they got with all of their questions and analysis and I think it shows based on how the profile was put together and the degree of specificity there. It's a fantastic due diligence package has been great to work with micro ventures.

 

Dan Humiston: [00:04:20] Oh and I look at your page on their website and I've told you this already it's it's it's fabulous. So well done so well done Brett. Kind of the same question for you though with cannabis companies there's so many of them raising money right now. Why did you select can a big big data to launch into the cannabis space.

 

Brett Andrews: [00:04:38] That's a great question Dan. So I think when you me on last year one of the things that we talked about was how bullish we are as a firm and our investor network is on the cannabis space in general. And I think our thesis has really been that we are looking for ancillary technologies that can sort of build on the momentum that the space has had without having to get into some of the regulatory issues that come with touching the flower and elsewhere and I think when we came across cannabis big data not only is it does it fit within that but it also has a cross section with the whole big data industry which is another industry that we see as a massive opportunity. And it hasn't really been taken advantage of in the cannabis space as far as we've seen so many you out on the where that Henry and his team they could bring a very sophisticated and professional background to the business. And I think because the industry new there's not a ton of companies out there that have that level of expertise and that level of experience professionalism. So we just saw it as an opportunity. We were really excited about and we're very happy that Henry chose to work with us and it's been a great experience so far and I think the race has been proving that.

 

Dan Humiston: [00:05:51] So I would say so I would say so we're gonna get into that in a minute. And you know in an upcoming episodes we're really going to get into the crowdfunding nuts and bolts but for today we're gonna focus on the cannabis Big Data deal and Henry tell us about the cannabis Big Data crowdfunding offering.

 

Henry Finkelstein: [00:06:07] Yeah absolutely. There are some regulatory boundaries around what's allowed to be raised. And there are effectively two tiers of raising one is below a hundred and seven thousand dollars. Up to I should say 107 and the others above and typically last year intending on having a blowout campaign. It's a good idea to start with that. That first tier and that's exactly what we did. So that the max goal for the campaign is one hundred seven thousand dollars and the minimum threshold to raise was twenty five thousand dollars. But I believe we blew through that in the first couple of days actually of the campaign. So it was a really fantastic launch out the gate.

 

Brett Andrews: [00:06:44] Oh you're being modest here but I have the micro ventures Web site up and I see right now that he's got a one hundred seventy seven people have already invested in this deal. I mean it's almost fantastic. It's almost fully subscribed already. Nothing against cannabis big data because you have an awesome company but I'm also sensing that there's a pent up demand for investment in cannabis. Brad are you feeling the same thing.

 

Brett Andrews: [00:07:08] Yeah of course. So I mean you touched on it and Henry touched on it as well so really really up until the last four years there hasn't been a mechanism for non accredited investors to invest in private companies especially ones that are at an early enough stage where there's still a lot of room for them to grow. And I think ever since the Jobs Act passed and the rules finally were issued and regs CRF has opened up here that with the growth of the cannabis industry as a whole. And you're certainly seeing investors out there that are wanting to get into this cannabis. Big data is a perfect example of it. That demand is there and we're seeing it and that's why we're continuing to look for other opportunities as well. But we're very happy with how the Rays gone so far for cannabis Big Data. I mean I think that's a perfect example of an opportunity that investors are looking to get into and a lot of it has to do with the fact that they're involved in the candidate space.

 

Dan Humiston: [00:08:00] How do you do have something that.

 

Henry Finkelstein: [00:08:02] Yes I'd love to throw something out there and it touches on something you mentioned earlier Dan about the 177 investors. For those of you out there thinking about doing a crowdfunding campaign a question that I get from other institutional investors accredited investors writing bigger checks is why would you go down that road and would you want that many people on your cap table. It's worth noting that the mechanisms are such that it's not at 177 individuals on the cap table. In some ways it's much closer to an SPV structure. It's one line item on the cap table. And most importantly this is now one hundred seventy seven incremental individuals who are deeply invested. I mean have literal skin in the game from a financial standpoint in the success of our business and that that many more advocates on the streets thinking about talking about and relaying the story of cannabis big data. So I think there's a lot of value above and beyond just the dollars. Is it a venture capital firm. No it's a very different vehicle and a very different type of interaction in being different. It has unique pros that other traditional capital simply does not have.

 

Dan Humiston: [00:09:09] Yeah. And I want to add to that two things One is people can make very very minimal investment. I think one hundred dollars is the minimum investment into this project. So some people are you know they're just hoping for that grand slam home run catch Microsoft when they first start in there just put one hundred dollars in to see where it goes. The other thing is your communication is only going to be with micro ventures it's not like you're gonna have to pick up the phone and get an answer. One hundred and seventy seven people's questions every day. Yeah.

 

Henry Finkelstein: [00:09:37] Hopefully this has been Henry's experience. I think we go out of our way to really add as much value as as we can. And let's go through the due diligence process and again some of that is for us are a lot of it is in for on behalf of our investors but also for the company part of the process and I've seen it happen for many companies that have gone to the right S.F. process where going through the due diligence alone can be an exercise that's really healthy. You know many companies if they haven't raised venture before may have not got through it. So there's that element but then yeah you're right. I think from the administrative side we bring a lot of resources to the table that can help both with disseminating information and handling tax documents or disbursement of funds a lot of resources that I think we bring to bear.

 

Brett Andrews: [00:10:20] With regards to that and Reg CF is one of them.

 

Dan Humiston: [00:10:22] So I want to take a quick break to thank all of our Raising Cannabis Capital listeners and to remind you that you can support the show by subscribing to MJBulls premium. It's only four dollars and ninety nine cents per month and you gain access to all previous Raising Cannabis Capital episodes as well as all other MJ bowls produced podcast and exclusive content including companies investor pitch decks good MJ bowls dot.com and enter promo code raising to get your first month free.

 

Dan Humiston: [00:10:52] Well we're going to have every right now I just started to say this we have all of Henry thinks things and cannabis Big Data's and Brett's in micro ventures information on the MJBulls Web site including that information will be cannabis Big Data's funding page. But before we wrap. This up I noticed on your page a pop up for questions. Is this kind of related to what we were just talking about. Brett if one of our listeners tonight has a question for Henry about the deal can they use the pop up on the cannabis Big Data crowdfunding page to ask Henry directly.

 

Brett Andrews: [00:11:30] Yep so one of the things that came with the rules from the FCC when they finally passed the rules of the JOBS Act and allowing the regs regulations the U.S. exemption was that the platform's hosting those deals had to have an outlet for investors to ask questions. So we call it a discussion forum. There is one at the bottom of the cannabis Big Data campaign page. So if you are going to micro ventures and make an account you can go in there and ask questions that I haven't checked it in the last couple of days. But I know from last time I was looking or Henry has been extremely responsive on those. I think it's rare for investors as specifically in private companies to be able to have this type of direct contact with the owner of a company. I think it's good for investors and it's good for the entrepreneur as well. They get an opportunity to address concerns but not have anything left in a gray area. So yes to answer your question there is a discussion forum there. All you gotta do is sign up for an account. It's free and you can ask away.

 

Dan Humiston: [00:12:26] That's a good I'm glad I asked that question. Henry didn't mentioned this earlier but this deal's closing in. Like maybe less than a week. So you've got to move quickly get your account set up on micro ventures hit that hundred dollar investment like like I said you might be catching Microsoft by the tail off in the early days. So Henry Brett the super exciting. Thanks for being on the show again. I have a feeling this will not be your last time on this show. Thanks guys.

 

Henry and Brett: [00:12:52] Really appreciate it.

 

Dan Humiston: [00:12:56] Thanks for listening to Raising Cannabis Capital to learn more about today's guests or to become a guest. Visit our Web site at MJBulls.com. Today's show is produced by MJBulls Media media with original music produced in part by Jamie Humiston. I'm Dan Humiston and you've been listening to the Raising Cannabis Capital podcast.

 

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Dan Humiston