Q&A Webinar: Cannabis Funding in Minnesota with FundCanna

Join FundCanna for a laid-back chat about cannabis funding in Minnesota - your chance to ask burning questions!

Unlock the secrets to cannabis business funding in Minnesota! Join industry expert Bill Gallagher, VP of Sales at FundCanna, as he explores financing options, banking partnerships, and the unique challenges of the Minnesota cannabis rollout. Discover how to secure capital, navigate compliance, and thrive in this emerging market. Perfect for entrepreneurs, investors, and anyone interested in the future of cannabis in Minnesota.

Unique Challenges to Funding in Minnesota

• Minnesota’s market is designed to prioritize local ownership and social equity; however, about 60% of pre-approval license applications come from out-of-state applicants so far, increasing competition for local entrepreneurs in a very limited market compared to other growing and mature cannabis markets.
• Widely seen upcoming supply/demand shortages, a newly appointed 25% sales tax on cannabis and hemp-related products, greatly limit opportunities and discourage investors and funding. With many seeking a "wait and see" approach.
• Social equity applicants face additional hurdles in accessing capital and finding suitable real estate, especially due to ownership requirements that limit outside investor control.

Funding Cannabis Businesses in Minnesota

The Funding Landscape

Traditional Banks:

Most Minnesota banks remain hesitant to serve cannabis businesses due to federal restrictions, making traditional loans rare. Some local banks (e.g., Countrywide, SCSU, Union Bank) are beginning to cautiously enter the space, but access remains limited and compliance is heavy.

State Support:

The Department of Employment and Economic Development (DEED) offers microloans ($2,500–$50,000, up to $150,000 with matching funds) and grants, with a priority for social equity applicants.

Alternative Lenders:

Companies like FundCanna specialize in providing financing to cannabis businesses, including working capital, equipment financing, vendor financing, and real estate leasing.

Spotlight on FundCanna

About FundCanna

• FundCanna is a leading provider of financial solutions for the cannabis industry, offering loans, equipment financing, vendor financing, and working capital advances.
• Bill Gallagher, VP of Sales, leads the team in helping cannabis businesses secure funding and navigate complex compliance requirements.
• FundCanna partners with Safe Harbor Financial to provide compliant banking and financial services, helping businesses access both capital and banking solutions.

How FundCanna Works with Banks

• FundCanna & Carpfish Creative collaborate with cannabis-friendly banks and financial institutions to ensure funds are transferred securely and in compliance with state and federal guidelines.
• This partnership model helps bridge the gap between cannabis businesses and the banking sector, offering a more complete financial solution.
• Both firms also have VC and other extensions.

Minnesota vs. Other States — Funding Difficulty

Access to Legal Funding

• In 2022, only 59% of Minnesota cannabis purchases were from legal sources, compared to 78% in fully legal states, indicating a much slower market development and more limited access to compliant funding.
• Minnesota entrepreneurs report more difficulty accessing capital compared to peers in more established markets like Colorado or California.
• The majority of Minnesota cannabis businesses rely on alternative lenders or state-backed microloans, while traditional bank loans remain rare.

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Q&A with Bill Gallagher (FundCanna) and Matt Carpentier (CarpfishCreative)

• Bill shares insights on:
• What Minnesota entrepreneurs need to prepare for funding applications
• How FundCanna evaluates applicants and tailors funding solutions
• The importance of compliance and working with cannabis-friendly banks
• How FundCanna’s partnership with banks and financial institutions benefits Minnesota businesses

Closing & Additional Resources

• Recap of funding options for Minnesota cannabis businesses
• Guidance on next steps for entrepreneurs
• Resources: Minnesota Office of Cannabis Management, DEED, FundCanna
• Carp @ Carpfish Creative will give updates on available licenses in the Minnesota market.

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👨‍🏫👩‍🏫 Ready. Set. Launch Workshop

Fri, Aug 08 | Saint Paul RiverCentre: Kellogg Hall - Meeting Rooms 2 & 3

🚀 Ready. Set. Launch MN Rollout Series

FUNDING YOUR CANNABIS STARTUPS FROM DAY ONE. Reach out to learn how.