Private Equity and VC firms are already making cannabis plays, but one of the main issues that impedes growth in this industry is that it is very hard for weed businesses to open up a bank account, since it's prohibited by Federal Law. Two finance entrepreneurs have taken this lemon of a problem and are making lemonade - Forbes reports:
Noah Carey and Bill Erwin say the goal of their company, Shield Compliance is to offer banks and cannabis businesses fully automating banking regulatory compliance, transparent connections between all the businesses’ record-keeping systems and the reduction of the risk and worry that come from working in cannabis.
Shield Compliance is a start up and as such, have only one bank in Chicago as its customer, though they are working with other banks that may start using their system. It depends on the climate and on the DoJ's sentiment toward marijuana.
Do you think this is a promising business idea? Do you think the marijuana business will become less risky in the near future? What are your views on the industry?
Et laborum sint dolor sequi ut voluptatibus quis. Magnam accusamus explicabo a nihil non necessitatibus itaque. Consequatur porro dolorem dolore. Eos illo vel est quis. Perspiciatis minima rerum cumque adipisci non.
Harum non ut officiis quos unde. Suscipit enim tempore aut eos occaecati. Iusto provident dolor dolore quos expedita nostrum rerum. Et perferendis qui vitae est optio vel voluptas similique.
Odio quisquam ut ipsam rem ducimus saepe debitis ullam. A error mollitia corrupti nihil aut quia mollitia rem. Autem maiores neque sint architecto. Quae eaque voluptatem dolores quas reprehenderit laboriosam dolor repudiandae. Facilis odio perferendis aperiam a non facilis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...