How to Value Your Cannabis Company for Investors –
Part 1 of our multipart series on Raising Money for Your Cannabis Business.

Check out our Fundraising playlist for all the videos.

Raising capital for you cannabis business is super important unless you have a couple million sitting around burning a hole in your pocket, which is unlikely.

Be sure your team puts together the best plan for investors, and try accredited investors, so that you do not have to raise from a lot of people and can have just a few big investors that will help round out your cannabis business team. Try to see if they can give something besides money, but of course, get the money.

Many times small businesses use Seller’s Discretionary Earnings, which is basically your net earnings before tax – with what you paid to the owner added back in – when determining a valuation for a company’s sale. The average is about 2.6x SDE as a valuation of a small business, which is most cannabis companies – smaller growers and independant dispensaries.