That’s unless the business in question is operating ancillary to a dispensary or grow facility.
“New York financiers have substantial opportunities to invest in technology and infrastructure to support the cannabis industry, not only in New York but nationwide,” said Scott Greiper, president of Viridian Capital Advisors in New York.
Investing in the ancillary marijuana industry has less legal risk than investments in companies that are directly involved in the production and sale of cannabis because ancillary businesses do not directly handle the plant.
“Companies that help growers lower production costs or stay compliant under the Compassionate Care Act will be very attractive to the traditional institutional investor,” Greiper said.
One area of opportunity for interested investors in New York would be to establish a service that transports marijuana from dispensaries to the homes of certified users.
“We will see entrepreneurs who want to develop a delivery system because dispensaries are not going to be able to reach all the patients, so that’s an ancillary business,” said N.Y. state Sen. Diane Savino.
But transporting marijuana would be considered illegal under current law.
“The question is unanswered as to whether or not that delivery system would have to be part of the overarching license or … subcontracted,” said Savino. “We’ll know more in January, when medical marijuana is actually in circulation.”
The ArcView Investor Network, whose about 500 investor members are accredited, placed more than $38 million into 55 marijuana companies in 2015.
“Historically, the ones that touch the plant raised more money,” said Dayton.