How Cannabis PR Attracts Cannabis Investors

Key Takeaways

• Ambitious Growth Plans & Corporate Storytelling: Cannabis companies must present clear, ambitious growth strategies and a compelling corporate narrative to attract investors. Effective communication of past successes and a strong brand story can significantly enhance investor interest and trust.
• Importance of Leadership and Protectable Assets: A strong leadership team and unique, protectable assets (like patents and proprietary methods) are crucial for instilling investor confidence. Investors seek companies with reputable leaders who can execute growth plans and differentiate themselves in the market.
• Market Understanding & Transparency: Deep market knowledge, including consumer motivations and competitor analysis, is essential. Additionally, maintaining transparency and honesty—especially during challenges—can build trust and set companies apart in an industry often criticized for inauthenticity.

I’ve often said that running the cannabis industry is like riding a bull, and securing capital investment for cannabis companies is like riding two bulls with your hands tied behind your back. Even though the cannabis industry is projected to be worth 52.6 billion dollars by 2026, it’s not been an easy journey for cannabis companies. Avaans Media has been working with cannabis companies of all sizes across North America since 2015. We’ve taken cannabis companies from startup through IPO, helped them secure top-dollar acquisitions, secured capital funding, and overseen massive international expansion. In short, we’ve worked with some of the most audacious cannabis brands. As strategic partners, we’ve seen what moves the needle for pre-IPO cannabis brands raising capital investment, and we know how to leverage cannabis PR to help you attract cannabis investors; here’s how it works.

 

What Excites Cannabis Investors?

Ambitious Growth Plans:

Cannabis brands looking for investors need to have big plans and a roadmap for those plans; sometimes, companies think this is only a financial responsibility. And while you can’t ignore the financial obligations, what good are successes if no one knows about them? A steady stream of past successes illustrates a relentless pursuit and consistent success. A strategic cannabis communications firm can help you create a strategic plan that adds trust and excitement to your company in a way that adds measurable dollars to valuations.

Robust Corporate Story

Attracting investors is more than a pitch deck. Yes, you need one, and you need it to be visually illustrative, but how does your pitch deck tell your story – what is it that people will feel after viewing it? For this, you need to deeply understand your corporate story and values because the worst thing a potential investor can feel is indifference.

Strong Leadership Team:

Ultimately, investors buy what you’re selling on the promise you can execute. This is why the C-suite is under constant scrutiny. Reputation management couldn’t be more important than for CEOs courting capital investment. Building trust through thought leadership is a time-tested strategy for companies seeking capital investment.

Protectable Assets:

From proprietary methods to notable brands to patents, cannabis investors love to see something strongly differentiating. Investors want to see an identity and unique assets that add value, and a path to grow the company’s value. Using patents actively and brand identifiers regularly are key components to making assets defensible.

Ultimately, everyone can make a cannabis edible. Everyone can say they use the best ingredients, but not everyone becomes a household name. While quality ingredients are important for brand trust, no examples exist of cannabis companies becoming number 1 because of the ingredients alone. Invest in your cannabis brand to grow your brand and attract cannabis investors.

Know Your Actual and Potential Place in the Market:

It’s not enough to know the projected revenues for the cannabis industry. Any cannabis investor already knows the TAM. What a cannabis investor wants to know is how you fit into that marketplace and how you’re addressing a marketplace hole. For this, you need to conduct consumer research that’s deeper than basket size and demographics.

What’s driving your ideal customer? What about you makes you their first choice? And, as importantly, who are your key competitors at each growth stage? When you’re a new brand with zero distribution, your biggest competitor isn’t the biggest brand in the state – other new brands that appeal to early adopters might attract your ideal customer. At mid-stage, your competitor is different, and when you’re at the tipping point, then maybe your competitor is the number 1 in the state.

Show investors their value to your company’s growth by knowing who you are now and who you can be with in-depth research.

Candor and Honesty:

Fair or not, the cannabis industry has a reputation for having a lot of inauthentic actors. C-suites with integrity and honor will stand out, and there’s nothing like having a strong voice to illustrate this transparency. Investing in the brand reputation, the C-Suite reputation is a solid signal for cannabis investors. When/if there is an issue, say a cannabis recall, the best thing a brand can do is be proactive and upfront with investors and customers. A solid cannabis crisis communication plan will ensure you’re executing with brand value in mind during times of stress.

Along these same lines, don’t try to gaslight your customers, regulators, and customers then act surprised when they pick up on it. PR isn’t an excuse for bad behavior if you’re using low-quality ingredients, creating products designed for underage users, or creating a hostile workplace.