The ArcView Group - Troy Dayton
Dan Humiston: [00:00:00] Today's show is sponsored by a former guest the fintech group and their solution for cannabis online companies and dispensaries to accept cashless payments. If you want a cannabis dispensary or a cannabis online business you know that banking laws make it impossible for you to accept any form of payment other than cash. The fintech group finally provides an option that was previously not available. To learn more go to FintechMerchantAccounts.com/marijuana-dispensaries or listen to Raising Cannabis Capital episode 55.
Troy Dayton: [00:00:35] If you go back to the early days boy it was really slim pickings for entrepreneurs. Really change. Now there's multiple layers of filters and we have a selection committee made up of members that really put a lot of energy to evaluate companies and then we also have really big companies that come now and present as well. So not just start ups and companies in their seed or a round.
Dan Humiston: [00:01:04] From an MJBulls Media it's the Raising Cannabis Capital show. I'm Dan Humiston. And on today's show we get a behind the scenes look at the organization that has helped take our industry to another level by single handedly connecting the most cannabis companies with the most cannabis investors.
Dan Humiston: [00:01:28] Today on Raising Cannabis Capital we are joined by Troy Dayton the co-founder of The Arc View group. Troy welcome to the show.
Troy Dayton: [00:01:40] Thanks for having me.
Dan Humiston: [00:01:41] Well for those that don't know Troy. He is one of the true leaders of the cannabis movement. Let me just give you guys a couple of his career highlights just to give you a sense of his accomplishments. He's a co-founder of Students for Sensible Drug Policy. Founding member of the National Cannabis Industry Association and recently was elected to the board of the Marijuana Policy Project. So his fingerprints are all over this industry's infrastructure. And I got to say if it wasn't for guys like Troy I know I wouldn't be here. So. So Troy thank you for all that you've done and you continue to do to move this industry forward. My pleasure.
Troy Dayton: [00:02:16] It's been quite the road
Dan Humiston: [00:02:18] I think we first met I was thinking about this. I think it was back in 2014 at the NCAA his first trade show in Denver. I think that's when we first met his name. And then I got to know you a little bit better with art. When we became a member that's kind of what we're gonna talk about today. So without further ado let's just jump in and talk about Arc View for a little bit. If I remember correctly at one of the Arc View meetings I cornered you and I said Well tell me a story. How did you guys get started. If I remember correctly you said that you and it was Steve D'Angelo. You realize that the industry needed sort of a bridge between cannabis entrepreneurs and investment community. If I remember correctly. Exactly.
Troy Dayton: [00:02:57] Yeah. Yeah. Well there's a gap. There is another piece to it which was that we both wanted to see cannabis prohibition and and saw business and self interest to a large degree as a big motivator to how we might change the game politically right. Because if people were making money and there is you've got business interests you know the pool of money that people put towards causes they just care about changes when the new money that they're making on these things is right you know opportunity to build businesses. And so we kind of joke low hanging away was the subtle reason we were doing it was really to get people who don't care about legalization to care about legalization dangling a carrot of money in front of them. Right. And then lo and behold of course we get bid by and I get paid by it. I love the whole entrepreneurial thing. I wind up over the years we started in 2010. So I mean it was really the only people in the business doing what we were doing. Then people who were diehards because it was a terrible business decision in 2010 let's say.
Dan Humiston: [00:04:08] I'd say yeah no it's a great feeling and I'm looking at on your Web site it's since you guys started Arc View has helped over 160 cannabis companies raise over one hundred and fifty million dollars which is just a true testament for the view team and you have six hundred accredited investors I mean I mean it's passion you have the numbers are actually way what you're reading up there.
Troy Dayton: [00:04:31] It's actually two hundred and twelve companies and over a hundred and sixty million dollars that we know right now we have a lot more that we just don't know about because people do deals they don't necessarily tell us about.
Troy Dayton: [00:04:45] So we assume we're probably about 100 million off then we.
Dan Humiston: [00:04:48] You're just talking about the first deal what about the second and third and that's the stuff you don't even have a blacklist.
Troy Dayton: [00:04:53] We don't really count that. Yeah exactly.
Dan Humiston: [00:04:56] Oh my Gosh. So you're
Troy Dayton: [00:04:57] We've had we've had companies like and Harborside and MJ freeway and madmen and em hard being on down the list and work short range biology during a billion years down here in the valley there's just tons of companies who now exude it or are raising it much larger base. So it's great we're actually just talking about putting together a little video going showing these companies with 300 million dollar valuations a big mass of eggs and showing them on stage when they were raising at five and 10 million dollar valuation or.
Dan Humiston: [00:05:35] You just got everybody's attention right now so let's jump into four cannabis entrepreneur. How do you help them raise money.
Troy Dayton: [00:05:40] Yeah. So we have a big group of investors. I mean certainly our membership is 600 but our our network is much larger than that of investors and these are investors that are some of our angel investors looking to place 50 100 200 500 thousand dollars into a deal. And then you've got people that are venture funds or big Fortune 500 companies or big family offices you know people that are writing multimillion dollar checks as well. And then also it's not just the raising capital but it's also a very curated invitation only kind of a situation. So what you wind up with is also a lot of people that can really help a business succeed. Beyond that I mean when you raise money the next thing you need is people to hire and you need advisors and you need this. You need that and this is sorting. Most concentrated group of key players that ever assembles for the cannabis sector and we do it about five times a year. But then we also have an online platform where people can interact in between the events to be able to look at deals collaborate on deals. We're really helping both sides of that equation come together and do business.
Dan Humiston: [00:06:48] Yeah I know in addition to that you give people the mentors to help them prepare their pitch you and you. There's a lot of behind the scenes stuff so that everyone's very polished by the time they're up on stage giving their pitches.
Troy Dayton: [00:07:01] Exactly it wasn't always like that. However I mean if you go back to the early days boy it was really slim pickings for entrepreneurs and boy it's really changed. Now there's multiple layers of filters and we have a selection committee made up of members that really put a lot of energy in to evaluate companies and then we also have really big companies that come now and present as well. So it's not just startups and companies in their seed or a round like it has been historically in the last year or so as the industry has matured canopy growth for example is an annual sponsor of our event right. And there are of course not there trying to raise money there. They're looking to be more connected in the U.S. and look at companies that they could potentially acquire and those kinds of things. And you know companies like golf flow Kona You know Mike Steinmetz is going to be our keynote at our upcoming Chicago event which is very exciting because Illinois of course just legalized cannabis and this is going to be the first event to happen there. You know in July right after I just got signed a couple days ago.
Dan Humiston: [00:08:08] Oh man good timing that works out perfect for you guys because you need to schedule that well in advance.
Troy Dayton: [00:08:13] Well let's talk about we've had we had some insight thanks to you know where I work on that side of it too.
Dan Humiston: [00:08:19] That's true that's true you have you always have the insider information plus with the 600 investor network I'm sure your finger on the pulse of the industry.
Dan Humiston: [00:08:31] 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 bills produced podcast and exclusive content including companies investor pitch decks but MJBulls.com and enter promo code raising to get your first month free talking about those 600 members or 600 plus members.
Dan Humiston: [00:09:04] If somebody were listening right now I know you have to be an accredited investor in order to become a member. Tell us more about the membership and how you help members find the right investment.
Troy Dayton: [00:09:15] The way that so much different industries all wrapped up in the cannabis industry so knowing one little sector doesn't really make you an expert on all the other sectors. You got to have a peer group to be able to look at deals because looking at a few deals that get sent to you because of your own networks and looking at them basically with yourself and somebody you know who says they're the best grower in the world it's not going to get you the best outcomes you've got to build a network of other people to be able to find deals evaluate deals and then invest together in deals and then most importantly help those companies succeed. Once you've invested in them that's the value of being a member. And what we do is we're one it's through through the platform and through the events and so a lot of it happens organically through there but also every member gets an account manager who helps them get connected to the people that are going to either help them develop their investment thesis or if they already have an investment thesis connect them to the companies and the peers that can help them achieve those goals.
Dan Humiston: [00:10:24] I just know whenever I went to the events you leave they're really fired up like even if you see something that you liked you you left with an eye with at least one idea you were super motivated because you're around a lot of really energetic motivated people and it's just it's a really really inspiring environment to be in. We'll jump forward you talked about your four events and what's next. What's on the plate for you over the next say 12 18 months.
Troy Dayton: [00:10:53] Well one thing just happened last week which is that we released our seventh addition of our annual market report and we actually changed the name from the state of legal marijuana markets to the state of legal cannabis markets showing the evolution of the industry.
Troy Dayton: [00:11:11] It's our most ambitious report ever. I highly recommend going to our key market research dot com to take a look at that. And then going forward we've got a big event coming up in New York in October. We're actually right now co hosting an event. Hong Kong some really exciting things happening internationally and then also a lot of plans to expand a lot of our asset management because investors are getting interested and they're not necessarily people that want to go and look at their own deals.
Troy Dayton: [00:11:42] They kind of want somebody to manage their resources to be able to put into that. And so that's part of our plan going forward.
Dan Humiston: [00:11:49] Well you certainly have experience. You've seen enough companies that's for sure. We've been speaking with Troy Dayton from the Arc View group and we have all of his contact information on the MJBulls Web site. Troy we could go on for a long time I'm sorry we have to cut this one short but thank you for being on the show and in you again. Thank you for everything you've done. Like I said at the beginning I mean I wouldn't be here and my family wouldn't be in this industry if it were not for me like what you've done and we really appreciate it keep it up.
Troy Dayton: [00:12:16] Thanks for having me. Looking forward to doing more stuff with you guys.
Dan Humiston: [00:12:21] Thanks for listening to Raising Cannabis Capital to learn more about today's guests to become a guest. Visit our Web site at MJBulls.com. Today's show is produced by MJBulls 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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