Where Can I Find Cannabis Investors Who Won’t Try to Rob Me Blind—Especially When I’m Just Standing Up a Dispensary and Trying to Avoid Predatory Capital Deals?

Understanding Your Real Stage of Growth, Red Flags to Watch For, and Why No One Talks About This Until It’s Too Late

Everyone’s Thinking It—Someone Finally Said It.
This wasn’t a made-up scenario or some clever blog prompt. I was literally asked this question unanimously during a recent conversation with emerging dispensary owners: “Where do I find investors who won’t try to rob me?” My mind went blank, not because I couldn't offer resources; but because I'd been so immersed in writing other topics for audiences that have fully integrated into next steps that sometimes it's a nice reminder to know what queries also need love.

It wasn’t a shocking question—it was shared truth amongst a lot of people within this stage. And that right there? That’s exactly why this conversation matters.

Because in cannabis, especially for new or underestimated operators, these are the questions that too many people keep hush-hush. Either out of fear, embarrassment, or because gatekeeping still runs deep in this industry. Folks act like if you have to ask, you’re already behind.

But we don’t believe in that. We believe in building loud, asking big questions, and giving each other permission to learn out loud. So if you’ve ever felt shame around needing capital, clarity, or community, let this blog be your green light to ask everything. No judgment.

You’re not new to risk. You’ve probably put your own money in first. You’ve dealt with licensing, maybe fought zoning laws, and now you’re trying to stand up a dispensary in an industry where money talks—but often wants to own your soul in return.

And you’re asking the question that so many dispensary owners whisper behind closed doors:

“Where are the investors who won’t try to rob me blind?”

Let’s talk about it.

First, Let’s Get Honest About Where You’re At

If you’re “in the process of standing up a dispensary,” you’re likely somewhere between Stage 1 and Stage 2 of cannabis business growth:

• Stage 1: Formation – You’ve applied for your license (or are in the thick of it), scoped out your location, put together a business plan, and maybe even brought on a small team. You’re still pre-revenue, but the dream is getting real.

• Stage 2: Build-Out & Capital Demand – Your license is in-hand or pending, you’ve got real costs piling up (architects, contractors, security systems), and you’re now realizing that your savings and friends/family round won’t cut it. This is the “capital cliff.” You either find more funding—or slow the entire thing down.

Ask Yourself:

• Am I underestimating how much capital I’ll need for build-out and inventory?

• Do I have full clarity on what each phase of growth will cost me—beyond just real estate?

• What will I have to sacrifice if I take the wrong deal just to get open?

The Problem with Cannabis Investment Right Now

Here’s the blunt truth:

• Many cannabis investors are glorified landlords. They don’t want to build with you—they want to own you, your real estate, your IP, and every ounce of future upside.

• They’ve seen others fail. So they structure deals with tons of strings attached to hedge their risk: think high-interest loans disguised as equity, majority board control, 3x liquidation preferences. If it smells off—it probably is.

• They often don’t understand the culture. If they treat your dispensary like a tech startup or a liquor store, red flag. You’re building something more nuanced, more regulated, and more rooted in trust and community.

Case in Point:
One cannabis entrepreneur shared on r/weedbiz:
“They offered to ‘help us get open’ but snuck in terms that gave them 80% of revenue for 5 years. We were too desperate to say no.”
Moral? Desperation makes a terrible co-founder.

From the Field:
Shanel Lindsay, founder of Ardent Cannabis, shared her experiences in building a profitable cannabis tech company despite funding challenges. She emphasized the importance of resilience and strategic growth in the face of industry hurdles.
Read the full article on Marijuana Venture

What Good Investors Actually Look Like

Let’s call them what they are: Aligned Partners. And yes, they do exist.

Look for ones who:

• Have experience in compliant cannabis, not just capital.

• Ask questions about your values, not just your revenue forecast.

• Offer strategic guidance, not just checks.

• Are open to creative structures like SAFE notes, revenue-based financing, or convertible debt instead of demanding 51% upfront.

They’re often:

• Former operators themselves.

• Social equity advocates or funds.

• Patient capital from aligned family offices.

• Angel investors who believe in the future of the plant—and you.

According to MJBizDaily, over 68% of equity deals in cannabis result in founders losing majority control within 3 years.
That’s not partnership. That’s a hostile takeover dressed in Patagonia.

Where to Actually Find These Folks

1. Cannabis-specific pitch events like MJ Unpacked, Benzinga, Arcview, or local Cannabis Capital Conferences.

2. Alumni networks from incubators and accelerators like Our Academy, The Hood Incubator, NuProject, or Momentum.

3. Cannabis-focused VC funds (yes, they exist): Entourage Effect Capital, Poseidon, Community Growth Partners, JW Asset Management.

4. Family offices who’ve publicly aligned with social equity or mission-driven ventures.

5. Former operators who have exited and are now investing in the next generation.

Pro tip: Great investors usually find you through the strength of your mission, team, and plan. That means building in public, pitching with purpose, and telling your truth—not faking traction.

How to Keep the Power in Your Hands

Before you take money:

• Have a clean cap table. No handshake deals. Get it in writing.

• Know your floor. What is the minimum you need to hit open doors and survive Year 1? Don’t raise more just because someone offers it.

• Read every clause. Get a cannabis-friendly lawyer who knows the games.

• Remember your “why.” If it starts feeling like you're building someone else’s dream, pause.

You’re not crazy for being suspicious.
You’re not overthinking it.
You’re right to feel like the vultures are circling—because some of them are.
But that’s exactly why education, community, and clear boundaries are your sharpest tools.
And we’re here to help you sharpen them.

🚩 Investor Red Flag Checklist: If They Say This, Run

📚 Recommended Reading & Resources

• The Hood Incubator

• Our Academy

• Arcview Group

• Cannaclusive’s Accountability List

• MJBizDaily Funding Reports

If You’re Knee-Deep in Buildout, Licensing, or Just Trying to Keep the Dream Alive—Here’s What You Actually Need to Know:

• You’re in the high-capital, high-risk Stage 2 of dispensary growth.

• Many cannabis investors are predatory. The good ones are rare—but worth finding.

• Look for aligned capital: operators, impact investors, family offices, funds with cannabis DNA.

• Get your legal ducks in a row before you say yes to any check.

• Protect your cap table like it’s your license—because it is.

I Mean... You Deserve a Partner, Not a Puppet Master

I know you're eager. I know you want your teeth in the game and frankly I've always respected the grit behind that bite. But please, oh please... For the sake of your business, your pockets, your mental health and your future; do not rush this part of the process.

You’re not standing up just a dispensary.
You’re standing up a movement.
One that’s tired of being told to be grateful for crumbs.
One that deserves a seat, a voice, and a share.

So don’t just take the money.
Take the time to find the ones who’ll bet on you, not just the weed.
We’re rooting for your ownership. For your leadership. For your legacy.