$25,000 Cannabis Innovation Pitch Competition It cost a lot of money for a cannabis start-ups to get their great product idea to the market. Rick Batenburg from Cliintel Capital Management Group joins Dan Humiston to talk about their current initiative to help cannabis entrepreneurs. They are sponsoring the Cannabis Innovation Pitch Competition and providing the winner with $25K and placing their products in thousands of dispensaries. Produced by PodCONX
$25,000 Cannabis Innovation Pitch Competition
It cost a lot of money for a cannabis start-ups to get their great product idea to the market. Rick Batenburg from Cliintel Capital Management Group joins Dan Humiston to talk about their current initiative to help cannabis entrepreneurs. They are sponsoring the Cannabis Innovation Pitch Competition and providing the winner with $25K and placing their products in thousands of dispensaries.
Dan Humiston: [00:00:00] Today's show is brought to you by Helix Bio Trac, the largest seed to sale tracking and dispensary point of sale software solution in the industry since 2010. Cannabis dispensaries, cultivation facilities and manufacturers have trusted biotech to securely and confidently keep them in compliance while managing their businesses with flexible solutions for both THC and Hemp Industries, customizable workflows built in machine learning and data analytics that deliver actual insights to the right people at the right time. It's clear why cannabis companies in 37 states and nine countries depend on biotech for comprehensive Cannabis software and business solutions that cover the requirements of compliant seed to sale tracking and data reporting in every state. There's really only one choice. Biotech. Go to biotech dot com today for secure Cannabis software solutions that you can count on.
Rick Batenburg: [00:01:01] Two main components of the prizes $25000 investment minimum company. And then really the big prize is your ability to develop a Cannabis product with the clear and really develop that product to a place where we can put it on shelves.That's really the biggest springboard is the ability to put that product in front of consumers and see how it does from MJ MJBulls Media.
Dan Humiston: [00:01:30] It's the Raising Cannabis Capital show. I'm Dan Humiston. And on today's show, one of the original Cannabis venture capitals firms is making a major announcement that's super exciting, especially for Cannabis startups.
Dan Humiston: [00:01:57] Today on Raising Cannabis Capital, we are joined by Rick Battenberg, the chief investment officer, clientel Capital Management Group. Rick, welcome to the show.
Rick Batenburg: [00:02:06] Thank you so much for having me. I really, really appreciate you having you guys. Quite the illustrious group of investors and people on your show. I'm really happy to be included.
Dan Humiston: [00:02:15] Well, I'm happy to finally have you on the show. We've had many of your portfolio companies on and other people within your organization. And I hear this over and over how deeply involved you are in the industry.
Dan Humiston: [00:02:28] So now that just gives me so much to talk about. But I'm really excited about the announcement that you have to make.
Dan Humiston: [00:02:35] But I'm going to hold off on that and let's make sure that we wait a little bit before you announce that. But it's very exciting announcement. Let's start off by just telling our listeners who aren't familiar with clientel Capital Management Group.
Dan Humiston: [00:02:47] What makes you different than some of the other VCP companies out there?
Rick Batenburg: [00:02:51] Sure. I try not to go right after the differences, if only just because I think that like most venture capital firms, everybody's looking for a strategic advantage. For me, venture capital is putting together the people, ideas and resources to create value where there was nothing and being the kind of centralized ignition point to put and recognize potential value and then put those pieces together to allow things to but on their own right.
Rick Batenburg: [00:03:16] Our goal is to put the pieces together and allow those very talented human beings that really have ideas or resources or whatever it may be, and put those in an environment that allows them to grow together and really create something of value for the participants and anybody that's best in those fields. There's so many layers you have to go through that. I think naturally, the more successful you are at raising money from the venture side, the more defensive you get around, putting layers around yourself, vetting different companies. And I think that that's really doing ourselves a disservice. I think that there is some value in that kind of raw exposure to the CEOs and the people that are out there doing the business, because I can't tell you how many pitch meetings I've been in where somebody else started pitching by the end of the pitch meeting. They didn't even know what they really had learned, how to apply it or really how to go to market with it. And they just had a misconception of the value that they really had. And had I not been in that meeting, I wouldn't have recognized that. So I really like talking directly to the people that are really passionate about their projects, not necessarily talking to their capital markets person or talking to their salespeople or the person handling their investors is really like to talk to the CEO and understand their opinion and their emotional connection with the success or failure of their company and understand what it is that they're trying to accomplish. Because this business is so personal, you know, we're all taking on a level of personal risk and that takes a specific type of person to kind of engage in that risk. They believe that fortune favors the bold. So I want to meet the bold people that are trying to really push this industry and innovate.
Dan Humiston: [00:04:57] Goes back to what I said earlier. You really have a hands on approach to managing your portfolio companies. And I think this gives you a real time sort of bird's eye view of the industry. Have you uncovered any new Cannabis investment opportunities as a result of the corona crises that you can share with our listeners?
Rick Batenburg: [00:05:18] Or, you know, it's it's interesting. I think that the Corona virus, it didn't stem any. Call it new opportunities. But what it did do is accelerate the Cannabis as role, I think in U.S. culture. And just as an industry in general, it really had to rise to the occasion pivoting and really understanding. All of a sudden they could only do curb side so they had to adapt. And Cannabis is not like liquor where you can make it and store it very easily. The Cannabis supply chain is a very active supply chain. Most dispensaries only carry about seven days worth of inventory. So when there was a big run on the dispensaries, all of a sudden everybody's got to respond. The entire industry had to really step up as essential to so many people's lives that that there was a stressor that was just a stressor that that happened to the cannabis industry. And it didn't really change that much about what we were doing. But it definitely put a lot of pressure on that industry. And I think that it was revealing to the people that were really able to take that pressure and go, OK, here's what we need to do, execute and maintain supply chains. And then there was others that they folded under that pressures.
Dan Humiston: [00:06:30] For the most part, I heard did our industry really came through in flying colors, especially given the fact that it's not a real established industry. It seems to have come through in most states and unflagging colors. I laugh when you say that you have to pick it up curbside because you used to get arrested for that, right?
Rick Batenburg: [00:06:48] Pre-web. Previous to this, you can't even issue any Cannabis outside of the lawful ozone and all of a sudden it was like, oh, now you can. Only do curbside. That was a huge shift in process and procedure that while meanwhile you've got a run on the dispensaries that everyone's having that kind of adapt in real time. And you're absolutely correct that that stressor is definitely revealing the ones that are gonna make and the ones that aren't going to make it. Have a little bit of a bubble gum situation here when the hurricane came through and destroyed a lot of the shrimp boats.
Rick Batenburg: [00:07:21] This is definitely going to be less competitors when we're all said and done.
Dan Humiston: [00:07:27] I want to take a quick break to play a preview of a special Cannabis and Corona report. But first, I'd like to thank one of our sponsors, Sencion Pixel Cannabis and CBD Hemp industry's leading marketing and design agency. After three years of working with CVD Hemp companies, Sencion Pixel has developed a strategy to improve your Instagram marketing. They figured out how to grow a real audience that engages and converts to sales. At the end of the day, go to a Sencion pixel dot com or click on a link in the show. Notes to learn how Sencion pixels hirable all in one marketing and design department can amplify your company's communication.
Jamie Pearson: [00:08:07] We had record sales days where dispensaries were selling out. People were stocking up. We saw, you know, an uptick anywhere from 13 to sometimes up to 200 percent increase in edible purchases. You know, we saw a bigger increase in edibles, frankly, than in flower sales. And, you know, a lot of people are just attributing that to not wanting to necessarily, you know, smoke or do something with your lungs. In the current environment.
Dan Humiston: [00:08:34] Tune in on Thursday to hear Jamie Pearson from the Band Corporation. And now let's get back to today's show.
Dan Humiston: [00:08:42] Let's talk about the innovation pitch competition.
Rick Batenburg: [00:08:46] Yes, absolutely. I'm super excited about this. We are offering a $25000 investment into the Cannabis Innovation Prize. Two main components of the prize is $25000 investment minimum into the company. And then really the big prize is your ability to develop a Cannabis product with the clear and really develop that product to a place where we can put it on shelves. And that's really the big springboard is the ability to put that product in front of consumers and see how it does. That's a huge regulatory barrier to entry for a lot of people that maybe have a great idea that we're talking a couple of million dollars before they would able to really develop that product and get it to market. And I'm really looking to accelerate that and put an opportunity in the hands of somebody who wouldn't normally have that opportunity.
Dan Humiston: [00:09:33] Yeah. So the winner gets $25000. The winner gets to work with the clear and get their products on the shelves through your distribution channels, which mean hits like a homerun. What type of companies would qualify or would be in this competition?
Rick Batenburg: [00:09:49] I am going to leave this one wide open. You know, obviously, I think that she'd see innovation is something that's really been underserved from a development perspective and partially just as a very capital restricted environment that we haven't seen the same type of capital being dumped into that type of development of those products. However, we're really open if anybody's got something clever. They got some good strategy. They've got to go to market strategies. The whole point is to put this in front of people who wouldn't normally have an opportunity to to pitch or wouldn't normally have an opportunity to work with such a large distributors. So we're accepting 40 companies into this competition. There'll be three finalists selected that will pitch in front of the venture capitalists, in front of journalists. And then the panel of judges is going to choose one of the three finalists. And then he presents an award and that'll be all done in real time. So we're really excited about the show.
Dan Humiston: [00:10:40] Yes, go on. That's going to be really exciting. Yeah. We need more things like this because it is tough. You know, you're bootstrapping it the whole time. It's nice to do this. And it gets startup companies thinking about more than just how do we make my next rent payment or pay my next bill. I think this show is another example of your taking a leadership role in the industry.
Rick Batenburg: [00:11:01] Well, thank you so much. I really hope that we're able to find some people that wouldn't otherwise have an opportunity to put their product in front of people that can really help them.
Dan Humiston: [00:11:11] Well, that philosophy, I know, has a lot to do with how successful you guys have been. And, you know, we'll have all of your information and clientele. Capital Management's information in the show, notes in an MJ Bulls dot com. And also, we'll have the link to sign up for the $25000 dollar innovation pitch competition. So if anybody out there is thinking about this. Just get the application in and see where it goes. I have a feeling, you know, nothing ventured, nothing gained. Put to put it out there, see what happens every day.
Rick Batenburg: [00:11:42] We're trying to keep it really simple with the application process. We want to see as much as we can. We want to see all the people that are excited. And, you know, obviously with the timing of everything. If we see something that we really like and we want to jump on, we're.Hesitate to reach out.
Dan Humiston: [00:11:57] When you select a winner. Let's get you guys both back on the show says, I'm sure our listeners will be anxious to see who ends up winning. Lutely be wonderful. Sounds good. Rick, thanks for being on the show today.
Rick Batenburg: [00:12:08] Hey, thank you so much for having me. I really appreciate it. You've done a wonderful job putting this show together. It's really impressive. All the great guests you've put on. I really enjoyed listening to it.
Dan Humiston: [00:12:17] It's a lot of fun to do this show.So I appreciate you saying that. Thanks again.
Dan Humiston: [00:12:23] Today's show was made possible by the generous support of our sponsors, like all 36, the country's premiere blockchain payment processing platform that's providing dispensaries and its customers with a safe and secure payment option other than cash. To learn more. Go to all 36 com. Today's podcast was produced by MJ Bulls Media.
Dan Humiston: [00:12:44] The industry's premier Cannabis podcast network with original music produced in part by Jamie Humiston. I'm Dan Humiston and you've been listening to the Raising Cannabis Capital podcast.
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