A “Shark Tank” type pitch fest for marijuana businesses opened at the L.A. Hotel Downtown Tuesday, attracting a number of budding local entrepreneurs.
The two-day event, hosted by Oakland marijuana investment firm ArcView Group, will give 25 cannabis-related companies the chance to pitch more than 200 high-net-worth investors for funding.
ArcView’s network of more than 500 accredited investor members has put more than $52 million behind 78 cannabis-related companies since launching these forum events four years ago.
About 15 percent of ArcView’s investors come from the Los Angeles area and several local companies are set to pitch this week, such as monthly cannabis-related subscription service 420 Goody Box.
“It makes sense to do it in Los Angeles this time because all eyes are on California and L.A. is by far the biggest regional cannabis market in the country,” said ArcView Chief Executive Troy Dayton of holding their first-ever event in Los Angeles.
Dayton also applauded the state Legislature’s recent passage of regulations to govern the statewide marijuana industry, pending Gov. Jerry Brown’s approval. He thinks the law will help add legitimacy to these businesses, which are part of a burgeoning industry nationwide.
“In 2014 we estimated this was a $2.7 billion market growing to $3.5 billion this year, and we’re predicting over 30 percent growth next year,” Dayton said of legal cannabis sales in the United Sates. “You just won’t see a multi-billion dollar market anywhere in America growing at this clip.”