There are a number of ways to get involved in a nascent industry such as the US cannabis industry. Some companies will tackle the product directly; others will provide ancillary services. Canopy Rivers is one of the few that was created with the specific goal of making sure other cannabis companies succeed, operating as a cannabis venture investment firm. It has turned out to be a smart move as the US cannabis space continues to expand, and the company’s Venture Capital Roadmap is a key component of Canopy Rivers’ success.
Canopy Rivers supports a large portfolio of cannabis companies through its roadmap, which is based on six milestones. These include finding viable targets, investing in them, facilitating their growth, re-investing through different funding rounds, growing profitability through scheduled capital injection steps and monetizing dividends. Per the company’s description, “In its simplest form, the venture capital roadmap would focus on finding companies, investing in them, and then multiplying that initial investment through a monetization event.”
It adds, “But we think smart money is patient and can lead to sustainable growth. Rather than wait for monetization to materialize, we aim to be actively involved with ensuring the operational success of our portfolio companies. Our cannabis venture capital roadmap reflects this growth mindset while keeping our goal—creating value for our shareholders—front of mind.
The goal of the roadmap is to create value for company shareholders, which is provided through a number of possible solutions, including above-market yields from royalty and debt positions, dividends and other distributions that are generated from equity investments or monetization events. Canopy Rivers understands that each investment target will generate benefits at different stages, some depending on the introduction of national cannabis regulation in the US, but the company has continued to gain ground and leverage its portfolio components to continuously improving results as the cannabis industry matures.