Crowdfunded Financing for Marijuana Software Business Goes up in Smoke
For Ralf-Rainer von Albedyhll and his start-up, new rules that allow small companies to sell stock through Kickstarter - like online offerings might have been the answer to a question that has dogged him for years: How do you find investors willing to back a company in the medical marijuana business?
He’d tried to convince professional investors, including members of an Oakland marijuana investor network group Arcview Group, but to no avail. So he turned to equity crowdfunding, a newly legal practice that allows start-ups to raise up to $1 million from the general public.
He spent weeks on paperwork. He had his firm’s books reviewed by an accountant. He thought he’d jumped through every hoop. And on May 16, his firm, NextRX, started raising money through Santa Monica’s StartEngine Crowdfunding.
Two days later, the campaign was suspended. Not because NextRX had run afoul of the new crowdfunding rules, but because another institution –...
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