What We Look at When Evaluating Companies
In the cannabis industry, investors have shifted from funding early business plans to now injecting capital at a company’s inflection point and accelerating its growth. As investors, assessing a company’s growth potential is a process that requires careful due diligence.
On Canopy Rivers’ blog, I shared five key indicators that our team uses to evaluate companies:
- Market Size – Evaluating the magnitude of the problem a company is trying to solve, and its long-term potential
- Market Need – Assessing the viability of a company’s business model
- Traction – Measuring growth, scalability, retention, and profitability
- Return on Investment – Assessing our ability to generate a favourable return
- Leadership Team – Gauging a team’s ability to execute on their vision
Building an experienced team, conducting adequate research, and proving product-market fit go a long way in demonstrating a company’s potential for success and securing an investment. If you are involved in a business that fits these criteria and categories, feel free to reach out to me at: ben [at] canopyrivers.com.
Head to the Deep End (Canopy Rivers’ blog) for more detailed information about our investment criteria.