Reports on Nine Cannabis Related Factors Startups Need to Take Into Consideration

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San Francisco, CA (PRWEB) May 21, 2015

It can be difficult to start a business of any nature. Venturing into the legal marijuana industry, however, will most certainly lead to numerous challenges not encountered by traditional businesses. Green Rush Review, a marijuana business news website, identifies nine cannabis-specific factors that startups need to take into consideration.


When starting a cannabis related business, one not only has to consider whether marijuana is legal in a particular state, but also has to check for any restrictions on cultivating or setting up shop. In Oregon, for instance, dispensaries may not be located within 1,000 feet of a primary or secondary school. Building landlords may also have opposing views on starting a legal cannabis business on their property.

Physical Requirements

State laws outline numerous requisites needed for a cannabis company to operate. According to a Mashable article, such investments in Colorado include a digital seed-to-sale tracking program, 24-hour video surveillance of facilities, as well as a quarantine section for edibles.


Marketing cannabis businesses can be tricky, as they do not have the same advertising options that traditional businesses enjoy. According to Marijuana Business Daily, cannabis companies are restricted from advertising in TV, radio, print, billboards, Internet videos, radio shows, pop-ups, and flyers or leaflets among others. One therefore needs to be both careful and creative when marketing a cannabis-related company.

Storing Money and Paying Bills

As marijuana is still deemed federally illegal, marijuana businesses cannot typically avail of bank services. Cannabis entrepreneurs are thus left with limited options, and are generally left to transact in cash. Unfortunately, storing money in cash can be both a security and accountability risk. According to The New York Times, pot businesses are left to store their cash in safes, carry them in brown paper bags, and ferry them around by armed guards and armored vehicles.

Tax Implications

While the federal government may see pot as illegal, the people selling it are still left to pay their taxes. A CNBC article reports that the IRS does not allow the usual business deductions under section 280E. While the federal tax code allows deductions for the cost of growing recreational marijuana in Washington and Colorado, it does not allow deductions for the cost of selling it.


The marijuana industry is growing fast, and Esquire reports that jobs in the industry are everywhere. The challenge, however, is meeting special personnel requirements and finding employees who fit in with the company culture.


A marijuana business may benefit greatly from supporting or joining associations, organizations, federations, and clubs that promote an interest in the marijuana industry. There are numerous groups to choose from, including the National Cannabis Industry Association, NORML, and High Times.


There is always the risk of federal prosecution, even if marijuana is legal in a particular state. Although federal prohibition is not enforced on a state level, this may change at any point in time. A contingency plan must be developed in order to protect a business from a change in circumstances.


According to The Milbank Quarterly, tobacco companies have expressed interest in marijuana and marijuana legalization since the 1970s, and are modifying corporate planning strategies to prepare for consumer demand in the future. At present, big drugstore chains, cigarette companies, and other large businesses are forbidden from entering the still-developing marijuana market. At some point, however, this may change when the market normalizes and they wipe out small marijuana businesses. strives to be a convenient and reliable online resource for all marijuana consumers, entrepreneurs, and investors. The website aims to provide the general public with extensive coverage on news, opinions, and events on the multi-billion marijuana industry and culture in North America, including industry stocks, prices, implications, trend developments, investment news and legislation. sifts through the abundance of material on the cannabis industry only publishing high-quality information that is significant to its readers. is part of a portfolio of cannabis industry sites which includes (top medical marijuana company news) & (cannabis small cap stock news).

Companies seeking exposure on can contact editorial(at)greenrushreview(dot)com for more information.

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Cannabis Startups: Exploring the Opportunities and Challenges – May 26th San Francisco Panel Event

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San Jose, CA (PRWEB) May 19, 2015

Early Growth Financial Services (EGFS) is pleased to announce its first-ever panel event focused on cannabis-based businesses. Co-hosted by First Ascent Associates and Runway Incubator, “Cannabis Startups: Exploring the Opportunities & Challenges” will take place on May 26, 2015 at Runway Incubator in San Francisco, California. This event will be a chance for founders within the cannabis industry to hear from and network with other founders, meet potential investors and others interested in the industry, and learn from business partners who support the space. Topics to be covered include specific tax, financial, and operational hurdles entrepreneurs focusing on this space have to contend with, how to access investment capital, and more.

EGFS is an outsourced financial services firm, headquartered in Silicon Valley that provides day-to-day accounting, CFO services, tax, and valuation support to early-stage companies nationwide. Founder and CEO David Ehrenberg will present along with startup founders and other experts on the legal, insurance, and funding landscape.

“I am so excited to help entrepreneurs navigate this space,” says David Ehrenberg, Founder and CEO of EGFS. “Our goal at EGFS is to help startup founders channel their passions into profitable businesses by putting a solid financial foundation in place. The legal cannabis industry is really at a tipping point. As seasoned players in the startup ecosystem, we understand the support and guidance early-stage companies need. As we work with more and more clients in the legal cannabis sector, we have a deep appreciation of the specific challenges they face as well as expertise in helping them manage them.”

At a time when new entrants are flocking to the industry while the regulatory landscape is quickly shifting, this event will give entrepreneurs the opportunity to hear the latest from industry experts and to network with others grappling with the same concerns. Participants will also come away with practical information and advice on how to build a thriving business.

Entrepreneurs interested in exploring the challenges and opportunities of founding a cannabis startup are welcome to join. Register here:

To help guide participants in this space, or those considering entering it, EGFS recently published a white paper on the industry: Legal Cannabis: Poised for Growth, But Banking And Tax Hurdles Remain Chokepoints.

About EGFS

EGFS provides outsourced financial services and support to companies at all stages of development via a complete suite of solutions and support: from CFO services and high-level financial strategy to day-to-day accounting, taxes, and valuation. Headquartered in the Bay Area, EGFS operates in Silicon Valley, San Francisco, Los Angeles, Austin, Chicago, Boulder, Seattle, Las Vegas, and New York City. With 475+ small to mid-sized businesses nationwide, EGFS clients include Indiegogo, Klout, TechShop, SNAPCARD, GoodEggs, Enplug, OUYA, and OpenERP.

Snoop Dogg raising $25m for cannabis start-ups

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Cannabis, also known as marijuana[1] or marihuana, or ganja (from Hindi/Sanskrit: गांजा gānjā, hemp),[2] is a psychoactive product of the plant Cannabis sativa, or more often, Cannabis sativa subsp. indica. The herbal form of the drug consists of dried mature flowers and subtending leaves of pistillate (female) plants. The resinous form, known as hashish,[3] consists primarily of glandular trichomes collected from the same plant material. The major biologically active chemical compound in cannabis is Δ9-tetrahydrocannabinol (delta-9-tetrahydrocannabinol), commonly referred to as THC.
Humans have been consuming cannabis since prehistory,[4] although in the 20th century there was a rise in its use for recreational, religious or spiritual, and medicinal purposes. It is estimated that about four percent[5] of the world’s adult population use cannabis annually and 0.6 percent daily. Cannabis is the world’s most often used illegal drug.[6] The possession, use, or sale of psychoactive cannabis products became illegal in most parts of the world in the early 20th century. Since then, some countries have intensified the enforcement of cannabis prohibition while others have reduced the priority of enforcement.

Snoop Dogg raising m for cannabis start-ups
The marijuana connoisseur hopes to exploit the fast growing legal cannabis industry in the US, where many states have either legalised marijuana or decriminalised its possession. Last year, Factobook publisher Cannabusiness Media estimated that …
Read more on The Drum

Casinos to cannabis: Native Americans move into pot business
The endeavor, launched after a U.S. Department of Justice memo largely cleared the way for such enterprises, is expected to trigger similar ventures to bring cannabis cash to Native Americans, like the windfalls from tribal casinos and tax-free …
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10 Cannabis Startups That Have Raised Over $1 Million (Besides Privateer)

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10 Cannabis Startups That Have Raised Over Million (Besides Privateer)
Legal cannabis gained a higher profile recently, after Seattle pot-investment firm Privateer Holdings closed a $ 75 million funding round. The deal included the first mainstream venture capital involvement in the sector, from Peter Thiel's Founders Fund.
Read more on Forbes

Cannabis cultivating spirit of Aspen mainstream
The night was organized by Munch and Co., an event-production firm in Denver; Cultivating Spirits, a Silverthorne-based company that offers cannabis pairings, wine tastings and grow tours; and Native Roots, a company with multiple dispensaries in …
Read more on Aspen Daily News