The State of Cannabis Angel Investing with Troy Dayton

Troy Dayton CEO of the ArcView Group

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Matthew: Hi, I’m Matthew Kind. Every Monday look for a fresh episode where I’ll take you behind the scenes and interview the leaders of the rapidly evolving cannabis industry. Learn more at www(dot)cannainsider(dot)com. That’s www(dot)cannainsider(dot)com. Do you know that feeling when you sense opportunity, when you see something before most people and you just know it will be successful, then you're ready. Ready for CannaInsider Consulting. Learn more at www(dot)canninsider(dot)com/consulting. Now here's your program.

It’s long been known that there is a group of insiders in San Francisco who see angel investment opportunities before anybody else. These angel investors meet with entrepreneurs just as they are beginning and often make investments in these companies while the valuations are still very favorable. Similar to how this has happened in the tech scene for decades. There is a group in the cannabis industry where cannabis focus entrepreneurs pitch their ideas to well healed angel investors. This group is called the ArcView Group and I’m pleased to have the Founder and CEO of the ArcView Group Troy Dayton with us today to talk about all the incredible things going on in the cannabis investment scene. Troy welcome back to CannaInsider.

Troy: Thanks for having me Matt. It’s good to be back.

Matthew: To give listeners a sense of geography can you tell us where you are today?

Troy: I am in downtown Oakland in ArcView’s offices that overlook Lake Merritt.

Matthew: Great. You didn’t start out in the cannabis business side of things you were an activist. Can you just give us a little brief on your roots in activism?

Troy: Yeah. Well when I was in high school and I tried cannabis for the first time it resulted in me being in handcuffs and put in the back of a car. It turned out it was a joke. My friends played a joke on me with a security guard and luckily I didn’t have to experience the pain and the downstream effects of a criminal record for that scare but what it did do was give me a sense of the fact that marijuana prohibition was wrong and that I wanted to change it, and so when I got to college I got involved with the Marijuana Policy Project when they were just getting started that year in 1995 and got involved in a local group on campus and that was the beginning of it. And then I helped Co-Found Students for Sensible Drug Policy during my senior year at American University in Washington D.C. and then worked in many different roles in the drug policy reform movement in the years until I started ArcView with Steve Deangelo in 2010.

Matthew: Troy we had you on CannaInsider in 2014 and we learned about the ArcView Group then but for new listeners can you give us a brief on what the ArcView Group is at a high level?

Troy: Yes. So the ArcView Group has had a number of groundbreaking ventures in the cannabis space. The one we’re probably most known for is the Investor Network where we have over 500 high net worth accredited investors that have placed more than 70 million dollars behind a 111 companies in the cannabis sector. And we’ve also raised just under a million dollars from stage at those events for the legalization movement. And then we also put out The State of Legal Marijuana Markets. We just put out the 4th Edition of the State of Legal Marijuana Markets this time in partnership with New Frontier, and this is sort of the definitive market report for the cannabis industry. It’s over 300 pages and it just goes deep dive into each of the state markets and some of the big trends in the sector and that’s mentioned in the news about a dozen times every day. And then we are also partners in Canopy, Canopy Boulder which is now expanding to a number of other cities which is a seed stage mentor driven accelerator for businesses in the cannabis sector.

We’ve had about 29 companies graduate or 20 companies graduate and then another 10 that are in there now and some really amazing companies coming out of there. And then we’re also partners in Cannasure which is an insurance company for businesses in the cannabis industry and we did that back in 2011. So that’s kind of who we are.

Matthew: So my key takeaway there is you’re lazy.

Troy: Yeah we’ve been busy.

Matthew: Yeah that is a lot. Now when we had on back in 2014 you gave us a brief of the investment scene and what it’s like at ArcView Events. How has it changed in the last two years?

Troy: Well let’s see 2014. When was it in 2014? Do you remember when we talked?

Matthew: It was about October-ish I think.

Troy: October okay. So by October of 2014 a lot of what we’re now seeing today really kind of started around then. Prior to about midway through 2014 really high quality entrepreneurs and really serious investors putting really serious amounts of capital into this space were kind of hard to come by, but I think after people saw that cannabis was being sold openly and legally in Colorado and that the federal government was going to take a hands off approach and more and more states started to pass I think that really woke people up. Both great entrepreneurs as well as great investors to come in and really start making deals and we’ve just seen that trend continue. We just get such higher rated entrepreneurs now and more and more serious investors coming into this space. To give you a sense of that 70 million of investment from our members into companies that have come through ArcView, 45 million of that occurred in 2015. So we’ve been doing this since November of 2011.

Matthew: Right.

Troy: So that just shows you what happened since the last time we spoke. I mean people really opened up their checkbooks and it was a massive flood of investment from the year before, and I will also say that it’s still very nascent. It’s still quite; it’s not like raising money in or investing in the tech space for example right? I mean it’s not even close. We’re still very nascent. It’s still very hard for companies that are looking to raise more than two or three million dollars to do that, and the amounts are still pretty small in comparison to other industries but in comparison to our industry, boy it is really increasing at a remarkable rate.

Matthew: Tell us a little bit about the best pitch prize. I mean you hear a lot of pitches from stage and this prize to create a best pitch prize came up and now there is a fund around that. Can you tell us about that?

Troy: Yeah. So the great thing about ArcView is we’re not the ones choosing the companies right. It’s our members that choose them. So we hear from about a dozen companies every week that want to present and we choose the top three or four each week to put on a webinar and they get paired up with our Chief Mentor Francis Priznar and are kind of helped to prepare to give the best pitch that they can on that webinar and on that webinar there’s usually 30 to 50 of our members are on that webinar and they vote on the companies. They rank the companies and if a company gets a certain high enough rating they auto qualify for the next big event that we host that’s live where our members come from all over the world to attend.

And then there’s a selection committee that chooses the rest of them that make up the dozen or so companies that present from stage and then at the events people who are members get to rank the companies and vote on the companies and so we now award the best pitch prize at the end of each of the meetings to the company that received the highest votes. This time in just a week from now we’re doing something we’ve never done before which is if the company has a deal with our internal deal platform capital partner New Way and their ancillary is not available to companies that actually touch the plant then they can be in the running for a Winner’s Fund which is a $50,000 dollar investment at whatever terms they pre-negotiated with New Way prior to coming to the event and it’s going to be chosen by the members.

And so now when members are in that audience they are; their votes really matter. There’s actually going to be a $50,000 dollar investment made and that money is money that ArcView is putting up for it and so we’re now putting money behind companies but we trust the wisdom of our crowd, and so we’re hoping that the members make a great choice.

Matthew: Let’s back up to a little bit about how you said Francis preps the entrepreneurs because it’s really important to put your best foot forward when giving a presentation to investors. How does Francis help the entrepreneurs maybe go from an okay pitch to a better pitch and have a lot of questions answered ahead of time? What can listeners listening thinking about how to improve their pitch in terms of being more relevant to investors?

Troy: Yeah I mean I think Francis is able to just seeing so many pitches and understands this particular batch of investors really well because that’s how he got the job. He was an investor member who had made a bunch of investments and was mentoring companies through the group. So then we were like when we came up with the idea for this role we knew he would be a great fit for it. But the tough thing about being an entrepreneur is that you’re “in the weeds” right. You are looking so closely at everything that it’s hard to see the forest for the trees and having somebody with an outside eye who is knowledgeable can make a big difference in being able to help you kind of see that and really simplify things and help people understand things that they might not understand because you’re talking to a unique audience.

And so that’s really what’s helpful there and in terms of advice for entrepreneurs I think people spend a lot; I think people spend too much energy on their pitch decks and not enough energy on their relationships. At the end of the day investment is all about relationships. A good pitch deck might give people the sense that you’re really sharp but at the end of the day an investment is like a marriage right. This is a five to ten year relationship and an exchange of value and where someone is going to trust the entrepreneur to be a good steward of their resources. And so the relationship becomes so important, and so how are we looking at people not so much for what they can invest but also for what kind of person they are and what kind of relationship can I build with them and how can I make this exciting for them and how do I stay in good contact and good touch with them. That’s probably the biggest thing I think people miss.

Matthew: Now early on in the process there was more trepidation around investing in companies that touch the plant versus not touching the plant. Has that perception changed? Do you see a shift more where people are or investors are more likely to invest in companies that touch the plant because it’s perhaps more of a straightforward business model than a speculative ancillary business?

Troy: Absolutely. That’s one thing that’s changed in the last couple years. People are much more willing to invest directly in the plant and I think that has a lot to do with the fact that there is state licensing. Look if the state is going to give somebody a license and they’re going to take tax money from it like I think a lot of people feel like okay the water is warm. There are many, many investors who don’t fit in that category though and particularly a lot of new investors that are coming in particularly if they’re investing other people’s money. I tend to be a little more cautious on that and focus on the ancillary businesses. Also because investors tend to invest in things that they know and understand and the cannabis industry is not something most people understand but they may really understand point of sale software or online marketplaces or social media or they may understand packaging or they may understand lighting technology right and so for them they start looking where they know how to evaluate a business and so that’s often one of the reasons people wind up investing in the ancillary businesses.

But certainly there is much quick returns usually in a business that touches the plant because usually you’re talking about limited licensing. So if there’s only a small number of people that are able to have a license to do that in a given state you’re getting a bit of a protected market and you’re looking at cash flows pretty quickly. So it tends to be a bit of a different value proposition for investors but you’re unlikely to have a 100X return on a dispensary whereas when you get into things that have an exponential growth potential that rely on network effect and specialized technology that’s either going to be a zero out or a big win and so it’s a bit of a different investment game.

Matthew: You mentioned you been doing this since 2011. Looking back these last five years is there a certain type of entrepreneur or a market segment that seems to appeal to the investors at ArcView?

Troy: Well I think the best teams are always a mix of cannabis knowledge and experience and business knowledge and experience. I think there is a tendency for cannabis people to get together and start companies. People that what they’re bringing to the table is their experience in the cannabis industry. Those teams are not likely to succeed and the reason is because while they’ve been spending the last decade learning about the cannabis industry, the cannabis industry where it’s going is not where it’s been so by its very nature they probably won’t have the skills and requisite experience to really build that business.

Vice versa if you’ve got a group of people who’ve only spent the last 20 years really immersed in other types of businesses and not the cannabis industry they’re going to misunderstand the consumer. They’re going to misunderstand the idiosyncrasies of this market. They’re going to miss out on cause marketing and other things that just are very unique that you just can’t get unless you’ve really worked in this industry and understand where it’s going and how it’s getting there. And so I think both teams like that are at a disadvantage and I think when they build teams that are a mixture of the best suited to succeed in this marketplace and also there often tends to be some cultural translation and sharing that needs to happen there as well so it’s more challenging but ultimately overcoming that challenge really sets those companies up to succeed.

Matthew: That’s a great point. People with different backgrounds and different experiences can often see around a corner that other can’t so it sounds like a diversity of thought backgrounds is really kind of key as we evolve faster and faster in this industry.

Troy: Absolutely.

Matthew: Now how about investors? I mean is there a profile of investor that you say hey this is a typical ArcView investor or is there a lot of diversity there in terms of backgrounds, where they come from, how they think, and who’s a good fit as a potential candidate to become an investor?

Troy: Yes. There’s a wide range of investors that are part of ArcView. I think at the top end you’ve got people who have a couple million dollars they want to place into this space, whether they are small funds or they are ultra high net worth individuals billions, etc. We have those people, family offices, etc. that are part of our group, and then on the other end of the spectrum we have people who are high net worth because say they’ve owned a restaurant or they sold their small business and now they’re kind of retired and they’ve got a couple million dollars from their work that they’ve done and are looking to invest in the next great American industry and they want to put a $100,000 dollars or $200,000 dollars into the space. Those are great investors for this as well. Even people who don’t have any angel investing experience but this is the industry that really inspired them.

We also have people who sold companies and active in the Silicon Valley Angel Investment world. We have celebrities that are members as well. We have people who are doing that piece and then we also have some of the top, the biggest people in the whole space the heads of the biggest companies Tripp Keber and Steve Deangelo and the heads of Open Vape and all these who are there and are really looking to make acquisitions and partnerships and so it really runs the gamut.

Matthew: There’s probably a lot of listeners that are thinking hey am I a fit for this. What’s it like at an ArcView Event? Are people doing bong rips and playing hacky sack? What’s it like here? What’s it like to be a fly on the wall at ArcView? I mean.

Troy: That would be great Matt. I wish we had more hacky sack and bong hits on the tables. It’s very professional but it’s professional with a lot of more excitement right. I think when a lot of people think about business conferences or investment conferences they picture people kind of being all business and I would say that at our events I think you’d be very impressed with the caliber of people that are there but I think you’d also be really surprised to see how relatable and how relating and collaborative they are. We’ve really built an interesting and valuable community because a lot of these people come to each of the events throughout the year and they’re engaged on the webinars and everything so it’s really become a family and the kind of intimacy that builds in that kind of a space.

I remember someone telling me I can’t remember the last time I was at a business conference where people in suits were hugging each other and so there’s a real and I think it’s because we’re doing something different. I think for a lot of people either they’ve been cannabis consumers or have been really excited about this opportunity for a long time but maybe they come from a place or come from an industry where that wasn’t really accepted. They couldn’t talk about that and so they finally find their tribe of people where they can talk business and everything else but they’re also are involved in something somewhat irreverent in the world and they’re changing the world in a powerful way and they’re up to something together that’s special and that I think is what makes it unique at ArcView and I think a lot of people come for the economic opportunity but they stay for the people, they stay for the change, and they stay for the value that we’re creating in the world by making it more free.

Matthew: Now what about investors that come maybe for the first time and they hear some pitches and that sounds great. They’re considering investing but they don’t really have context yet. Maybe they see the promise of the industry or they’ve heard some things that are interesting about cannabis so they think they know something but they don’t have the full context of what’s important or considerations.

Troy: Yeah.

Matthew: How do other investors or kind of the ArcView eco system help to orient new members?

Troy: Yeah. I think that this is the reason why we started ArcView right was because so many people were making bad decisions or doing it without the benefit of collaboration and so one of the first things we do when a new member signs up is we introduce them to either other investors or other companies depending on where they are in their process. If they’re really early in the process before we introduce them to companies we introduce them to their investor peers so they can find people who can kind of welcome them to the crew and figure out what they’re interested in and kind of start to build that peer network to build that kind of comfort and then some people are like no send me the; I want to make some moves here introduce me to the companies and I say what’s nice about it is that we have a whole internal deal platform where people can look at deal after deal after deal.

You can watch the pitches that they gave on the webinar or from stage. You can look at all of these various aspects of the deals because one of the biggest problems in investing especially in a new area that you’re not familiar with is that we don’t have a way to judge deal against other deals like it to see whether the company really matches up, if the team is strong, if the opportunity is good, and all those pieces and so they say when you’re going to buy a house you should start looking months ahead of when you plan to buy because you want to look at a dozen or so houses before you choose one and I think similar with investments in the cannabis industry and so it’s all about building that peer network and it’s also about getting face to face time with entrepreneurs so that you can look in their eye and say hey is this somebody I believe in, is this somebody I want to be in business with for the next few years, is this somebody I think is going to be a good steward of my resources.

And then the other thing I would say is maybe start small. One of the nice things we have at ArcView is the opportunity to in many companies invest as little as 5 or $10,000 dollars in a company when that company may have a minimum of $50,000 or $100,000 and that’s because of this internal deal platform that we have and this relationship we have with our capital partner to be able to create what’s called single purpose vehicles. It works very similar to how AngelList works and that allows people to diversify over a wide range of investments and it allows them to get their feet wet without betting the farm.

Matthew: Right.

Troy: And so the way to learn is often by doing and so if people invest 5 or 10 grand in a couple companies they think are interesting it’s through that process that they’ll start to really get a feel for what they; where they really want to place bigger bets.

Matthew: Well let’s talk a little bit about BreEZe. It’s an online investing platform. If we were to log on right now and take a look at it just walk us through what we’d see and how it works.

Troy: Yeah. It’s where all of the deals that come through ArcView go and so entrepreneurs upload their pitch deck and their deal terms and then we upload videos of their presentations and the Q & A that happens afterward from the members. So whether it’s the webinar or from stage and then there’s a space where the investors can talk to each other and evaluate the deal together and express in a deal through that as well and this is great because you can really search through a wide range of deals to really see what’s out there and be able to narrow it down by sector or by stage of the company, look at their ratings, look at only highly rated companies, or etc. so and then on some of those companies have a pre-negotiated deal with New Way Capital and for those companies that have a pre-negotiated deal with New Way Capital there’s a little button that says invest now and that allows members, accredited investor members to click that button and reserve a slot in that company and that’s where you have these special purpose vehicles where the investor is not the person on the cap table of the company right. They invest into kind of a pooled vehicle and then the head of that particular SPV is the one that represents all those investors on the cap table of that company. It works very similar to how AngelList works.

Matthew: Yeah that really makes it easier for your first couple investments. It takes all the different permutations and variables out of it so you can just kind of focus on whether you want to do it or not at that valuation. So it’s a nice way to get your toe in the water.

Troy: Yeah. You also get the benefit of having somebody professionally negotiate and manage and keep up to date with the company because some people don’t want to do that and that’s valuable. You also; there’s also other obviously a lot of the funds that are in the cannabis sector are also members of our group too so it’s not uncommon for somebody to come in, maybe they make a few small bets but they ultimately decide that they really met somebody that runs a fund at the events and that they really trust that person. They really like their strategy, their investment thesis, and so they want to just put money behind the fund and that’s not uncommon for people to kind of play on both sides of that.

Matthew: Pivoting to ArcView market research. You recently updated The State of Legal Marijuana Markets and I believe it’s the 4th edition.

Troy: Yes.

Matthew: What kind of jumps out at you? Was there any nuggets where you were kind of leafing through when you’re creating the research and you’re like wow this is something that I probably would have not expected from last year that really is an interesting bullet point?

Troy: Yeah. I mean one of the things is just the growth of the market. I mean it’s looking at a 31% compound annual growth rate between 2015 and 2020.

Matthew: Wow.

Troy: That’s unheard of. We’re talking about in 2015 this is a 5.7 billion dollar industry growing to a 22.8 billion dollar industry by 2020. That’s remarkable. You will not find another market that’s growing at that kind of pace. That’s a multi-billion dollar market where there aren’t any big multi-national players or big banks making plays in it and so what that presents is probably the most amazing business opportunity for the small of medium sized player to really take a crack at this before they’re competing with big multi-national companies. It’s a very unique moment in economic, social, and political history and we have a really unique opportunity to succeed there.

I would say another thing that’s really interesting is the price wars that are happening between Washington and Oregon because this is the first time where you have two adult use markets that are contiguous where they share a border and their key areas of population are also fairly close to each other. I mean Portland and Seattle are not that far apart and so you also have very different regulatory structures. Oregon has a very loose regulatory structure and low taxes and Washington has high taxes and a pretty tight regulatory structure and so being able to see some of the numbers and how they interplay of what happened when Oregon came online with its adult use market and how that may be impacting the Washington market. So I think that’s a fascinating exploration which we’re going to keep an eye on for sure that came out of the report.

Matthew: Now half our listeners are in California which is kind of a shocking statistic but California’s cannabis market is just so huge and deep that it really just wharfs almost everything else.

Troy: Yes.

Matthew: And I think it’s for people that might be new listeners might have a difficult time understanding just how big it is but it’s absolutely enormous. When you look ahead I mean California do you think it is kind of moving into a leadership role where Colorado and perhaps Washington were kind of the early runners in terms of hey it’s legal here for adult use but now the pole, the capital, technology people and resources are moving to California in a bigger way?

Troy: Absolutely. People are salivating over the California market right now because it’s really; there’s a lot of pent up demand for innovation and investment and growth in California because it’s really been hampered by a lack of regulations, a lack of state regulations, a lack of clarity as to how that relates to the federal priorities. A patchwork of different regulations in each city as well as a nonprofit requirement meaning the companies had to be set up as not for profits and so that really kind of but despite that it became the largest market and it was the first market. So you’ve got this really interesting conundrum there. It’s also the core place for culture around cannabis. I mean it’s like this is where the cannabis culture has really created when most; when you ask people what state do you associate with cannabis prior to 2014 everybody would say California.

So it’s both; it’s got a lot of elements of that and what’s changing is now that there are state level regulations and also there is a ballot initiative that looks quite likely to pass people are really lining up. But it’s something a bit paradoxical about that because in our report we predict that the medical market actually is going to be losing a little bit each year. It’s probably the only market that’s not expected to grow and that’s because these new regulations are quite tight and onerous and so we expect that there will be a bit of a constriction in the market. In part because elicit cannabis is so widely available here. So you don’t need to push consumers much to have them be like screw it I’m going to the dude down the street.

Matthew: Right.

Troy: And so I think that’s going to be interesting but with the advent of legalization coming in 2016 by 2018 that adult use market goes actually online right because it takes a while for them to implement these regulations and that’s when you see really big growth start to happen once there is adult use legalization in California and so we’re looking at by 2020 at a 6.4 billion dollar market just in California and that’s not even a fully matured market because it will only be online for two years and it won’t be fully online in that first year. So 6.4 billion I mean that’s bigger than we put it out in 2015 right. So the whole market in the U.S. So it’s really a unique opportunity and also one of the challenges that you have in this market is the fact that you can’t have interstate commerce right so if you’ve got a facility in Colorado or in Washington that facility can only serve Washington or Colorado. Well these are relatively small states in terms of population.

In California you get to have economies a scale so it’s much more interesting for a business owner to own something in California because it’s more like; it’s one of the largest economies in the world. So if you have a business in California it’s like being able to have interstate commerce with your business for the whole Eastern seaboard right.

Matthew: Right.

Troy: Which you can’t do even if all of those states passed those laws. So you get a much more efficient market and marketplace. Of course the big pull on that is that at least what’s presented in the ballot initiative in 2016 and what’s in the regulations that passed for state level regulation for medical wow in both cases they’ve really gone overboard with the regulations in ways that are going to create some pretty remarkable inefficiencies in the marketplace that is going to ultimately raise prices and impact consumers in a negative way. My hope is that we get some reforms on that. We don’t need to treat cannabis like its plutonium. I think we can have reasonable regulations and follow in the footsteps of these other states. But of course California has got to do it California’s way and so we’ll live.

Matthew: Troy before we close just a couple personal development questions. Is there a book that has had a big impact on you that perhaps over the arc of your life you look back and gives you a different lens on how to perceive your life and where you want to go and what you want to do that you might recommend to CannaInsider listeners?

Troy: Yeah. I’m actually reading a book right now that I’m about a quarter of the way through that’s kind of blowing my mind. It’s called “Originals” and I don’t know the name of the author but it’s a fascinating look at people who’ve been innovators and people who’ve made really big impacts on the world and looks at the psychology in the data behind what makes people succeed in that way in creating a really unique imprint on the world and so it’s a lot less; it’s not just fluffy right? It’s not just like; it uses really solid research. So it kind of reads a lot like a Malcolm Gladwell kind of a book.

Matthew: Okay.

Troy: About that topic but I think it’s interesting and I think for anybody that is looking to make a unique mark on the world it’s important to challenge the conventional wisdom about who does it and why they do it.

Matthew: And if you could go back and talk to the 18 year old version of Troy Dayton what advice would you give him?

Troy: I would just say that maybe be careful what you wish for right that you actually have more of an impact then you imagine that you do or you have the capacity to have more of an impact then you imagined it and also that when you look up to people as people who are really; that you look up to as mentors or you look up to and say I’d love to be like that someday or whatever that it doesn’t look that way as you get there right. At the end of the day people just put on their pants one leg at a time and you don’t need to be that special or that perfect.

Matthew: Right.

Troy: In order to make such a big impact and as I’ve gotten older and as I’ve spent time with celebrities or spent time with people who are just at the very, very, very, very, very top of their field. There are some differences but they’re not the differences I imagined when I was eighteen.

Matthew: Okay. Do you boil it down to persistence or just focus? I mean when you see that just this person knows what they want?

Troy: Yes. That’s really well said Matt and also in luck and the power that luck has on people. The confidence that luck can give you can take you places right.

Matthew: Yes.

Troy: I mean I think that our consumer culture has really created a nation of insecure people right. Everyone’s insecure. Am I enough of this? Am I enough of that? Am I this, that and it creates this overall sense of insecurity and it’s only when you achieve something that the society kind of rewards you with praise for that you get to move into the sort of God given sense of security and confidence that we should all have all the time.

Matthew: Oh this could be ammunition for a whole other show here. I mean these are great topics.

Troy: Yeah don’t get me started, don’t get me started.

Matthew: Well Troy tell us about your next ArcView Event and how listeners can learn more about it?

Troy: We’re going to be in Oakland, June 18th, 19th, and 20th and that’s going to be cannabis week because on the 18th during the day Canopy Boulder is going to be doing their demo day so that’s going to be the companies that are graduating from this class are going to present at that demo day and then we have our two days of our event and then after our event it’s the National Cannabis Industry Association’s Annual Conference. So I highly recommend that people participate in that as well and then the other thing I would just say that we didn’t address here today that I just want to make sure people understand because there is a really short timeline on this which is that we’re on the ballot in nine states in November. Nine states are either going to be voting on medical or adult use legalization and those ballot initiatives are severely underfunded right now because we got on so many ballots and so I just really want to take this opportunity to remind your listeners to really consider what kind of impact you want to make and make a donation.

Whatever is meaningful to you? Some people a meaningful donation is $20 and other people a meaningful donation is 200,000 dollars. To really think about what kind of impact they want to make this November. It’s a rare opportunity to really; to basically put the final nails in the coffin of marijuana prohibition. If we do well on election day we will be waking up in a very different world on the next day and so I invite you to participate with me and others in making sure that on election night you’ve got something really at stake where if we win you feel like I was part of that and if we lose that you feel a loss from that. Make sure there’s something at stake for you in it other than just armchair politics.

Matthew: Well said. Troy what’s the best way to connect with ArcView online and social media wise?

Troy: So www.arcviewgroup.com that’s best then there’s or ArcView Group in Twitter I’m #Tdazzl without an E and then if you’re looking to make a donation one place would be www.mpp.org and you can do www.mpp.org/arcview if you’d like to let them know that you kind of heard about it here. But however you give and whoever you give too please do it soon.

Matthew: Thanks so much Troy for coming on CannaInsider today and thanks so much for being an early activist and pioneer to make this happen. I think you really need to be recognized for that because as you’ve mentioned before a lot of think it’s inevitable now that cannabis prohibition will end but it was the people like you and Steve Deangelo that were doing it way back when and really, really driving and pushing this change and it couldn’t have happened with you. So thank you so much.

Troy: Yeah. My pleasure and thank you for acknowledging that and there’s still a lot more work to do and a lot more room in the history books.

Matthew: Good point.

Troy: You’ll be in it too.

Matthew: Thanks Troy.

Troy: Thanks for having me.

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Troy Dayton is the co-founder of The Arcview Group. The Arcview Group is best known as an angel investing forum where cannabis entrepreneurs and investors meet to get deals done. To date Arcview’s 500+ investor members have invested over 70 Million dollars in cannabis-focused companies.

Troy and Matthew discuss the most interesting aspects of the cannabis investing space as well what prospective entrepreneurs and investors need to know right now in order to be successful.

Troy was recently named  one of the 7 Most Powerful People in America’s Marijuana Industry by Fortune Magazine.

Key Takeaways:
[1:42] – Troy talks about his background in activism
[3:13] – What is the ArcView Group
[8:10] – Troy talks about the Best Pitch prize
[11:08] – How are entrepreneurs prepared for pitching to investors
[13:54] – What types of companies are investors investing in
[16:33] – Certain types of businesses & market segments that appeal to ArcView
[19:12] – Who is a good candidate to become an ArcView investor
[21:22] – What’s it like at an ArcView event
[24:03] – Troy talks about how new members are oriented into ArcView
[27:23] – The Breeze Online Cannabis Investing Platform
[30:42] – Troy talks about the growth in the Marijuana market
[39:23] – Troy’s book recommendation
[43:28] – Information on the next ArcView event

Learn more about Troy and the Arcview Group at:
http://www.arcviewgroup.com
and
http://www.cannainsider.com/136

Important:  You can use coupon code: CI100 to get $100 off the most compelling industry research in the cannabis industry, visit, http://www.arcviewmarketresearch.com

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The Five Disruptive Trends Shaping The Cannabis Industry Now