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?
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