Creating a CBD company with over 1 million users and over 9 figures in revenue by 2022. Today, many of the over 2,600 meaningful CBD companies are struggling to survive. David Metzler joins Dan Humiston to explain how his team is investing exclusively in CBD brands. By providing his portfolio companies with resources and expertise and fostering an environment where they feel safe sharing best practices with other CBD companies, CBD Capital Group hopes to reach 9 figures in revenue by 2022. Produced by PodCONX
Creating a CBD company with over 1 million users and over 9 figures in revenue by 2022.
Today, many of the over 2,600 meaningful CBD companies are struggling to survive. David Metzler joins Dan Humiston to explain how his team is investing exclusively in CBD brands. By providing his portfolio companies with resources and expertise and fostering an environment where they feel safe sharing best practices with other CBD companies, CBD Capital Group hopes to reach 9 figures in revenue by 2022.
Dan Humiston: [00:00:00] Before we start today's show, we want to congratulate two of the other MJBulls Podcast on their one year anniversary over the last 12 months. Hemp Barons and the Deadhead Cannabis show have established themselves as Premier Cannabis podcasts. And we're proud that Larry Mishkin and Jim Marty, the host of the Dreaded had Cannabis show. And Julie Beckerman, the host of Hemp Barons trusted MJ Bles to produce their shows and look forward to another great year. If you're not already listening. Check out Hemp Barons in the Debted Cannabis Show. MJBulls.com I tunes Spotify wherever you're listening now.
David Metzler: [00:00:36] We're looking for companies that are above Hemp million dollars or more in revenue. Ideally profitable. And we can bring them together into a family, work together and then actually create a liquidity co-op. If companies aren't worth a lot by themselves. But when you combine up revenue and you start being active and then are meaningful and that's what we wanted to help these entrepreneurs, is make sure that they didn't fail.
David Metzler: [00:00:58] There's so many competitions and so much noise out there. And then second to that was give them a chance to get an act that they would never get on their own.
Dan Humiston: [00:01:08] From an MJBulls Media.It's the Raising Cannabis Capital show.
Dan Humiston: [00:01:16] I'm Dan Humiston. And on today's show, how these entrepreneur investors are pooling the expertize in market share of many companies to create the industry's first CVB company with revenues that exceed nine figures today in Raising Cannabis Capital.
Dan Humiston: [00:01:39] It's another chapter in the Cannabis Investor Spotlight series with David Metzler from CBD Capital Group. David, welcome to the show.
David Metzler: [00:01:48] A honor to be here. Thank you for having me.
Dan Humiston: [00:01:50] Well, over the years, we've had a couple of dusters on the show and I remember one to interview an investor was telling me how all his investment banking buddies thought he was nuts for launching a firm that only invested in Cannabis companies. Now, fast forward and her company has even narrowed that scope to a point where you're only investing in CBD companies. What do you see in this speech that prompted you to go all in with CBD companies?
David Metzler: [00:02:18] Well, we loved the fact that it's federally legal, and so that opens up a whole different set of capital tools that we felt like we can access if we stay narrowly focused. But beyond that, I've been an operator and investment banker, and venture capital, as I experience, has always shown that when I operate companies, if I focus and just do one thing amazingly, then I can be best at the world at that and let other people do what they do amazingly. And so that's why we chose to focus on CVD and be the best in the world that really helping companies distribute nationally across a federally legal product line.
Dan Humiston: [00:02:52] Yeah, I think that's great. I mean, I think that's the best way to go. And anybody listens to our show knows I always talk about state and narrow and deep. You mentioned that you're you've raised money and you've invested money. You didn't say that you're an entrepreneur, but you're an entrepreneur. You read in a whole nother dimension to this process because, you know, you actually can walk the walk and it gives you credibility.
David Metzler: [00:03:13] The only investors I ever trust are the ones that have been successful operating their own businesses, because they're the ones actually know what it's like to try to make payroll. When you're starting a company and that's what I've gone through, we've actually put our own money to work at our own risk on the table over the last 18 plus months. And that's important for entrepreneurs to know that they're not alone, that others are taking the same line of risk. No, their pain, their problems and can help them get through those. So, yeah, we failed. Now, two companies. This is my third one. As an entrepreneur from zero multi-million. And it's really important because there's a lot of lessons that I've learned and our team has learned that we're here to help others avoid the mistakes I've made. So, yeah, I am an entrepreneur at heart. I love hard things and I love successfully overcoming hard things.
Dan Humiston: [00:03:58] Yeah, I think that makes a big difference. I mean, just trying to have a conversation with an investor that really hasn't done it is challenging for an entrepreneur because unfortunately there is sometimes a communication gap. Does dust-up to your strategy? Essentially, you're going acquire CBD companies or invest in c.B companies and use them all to work together towards a larger, bigger idea for the entire group.
David Metzler: [00:04:23] That said, it's basically this, which is we saw how many brands that there are out there. We're tracking twenty six hundred brands above any meaningful size and it's so easy to set up with CBD shop and set up a brand. So what we're looking for is companies that are above a half a million dollars or more revenue. Ideally profitable and we can bring them together into a family, works together and then almost essentially create a liquidity co-op for these companies aren't worth a lot by themselves. But when you combine up revenue, then you start seeing exits happen that are meaningful. And that's what we wanted to help these entrepreneurs, is make sure that they didn't fail. There's so many competitions and so much noise out there. And then second to that was give him a chance to get an exit that they would never get on their own. So big investors, strategic players, they don't want to take time to get into these small micro companies. You know, anything below five million dollars is just more work for them, generally speaking. So if we can put these micro companies together, then they're valuable, they're collaborating. They're not by themselves anymore, and they're worth a lot more. So we've created this kind of liquidity co-op where the companies we come together, collaborate, run their own company. We put them into a mastermind where they work with other best entrepreneurs. And then at the end of that, we'll get an exit that's much bigger than any one of us can do by ourselves.
Dan Humiston: [00:05:37] I think that makes a lot of sense. I didn't realize that there were 26 hundred CBD companies.
David Metzler: [00:05:43] Those are the meaningful ones. There's a lot more than that. It's not really hard to set up a CBD company and white label product. What we're talking about are the companies that are actually have some existing revenue that that there's a lot of competition, a lot of noise, and a lot of them, unfortunately, now with covered are going to fail over the next year. Plus as we go into this recession, to say it is going to be hard for a lot of these companies. And our goal is to save as many of them as we can and really help these coachable entrepreneurs get through what's ahead. You know, our team has gone through what we call three black swan events. This is the third one coalbed. Before that, you had two thousand eight as operators, we were successful in getting through that and then you have 9/11. And this is going to be a really dark phase for a lot of companies. And we want to help the ones we can carry the light forward and be successful and then help America alleviate pain. And that's our mission, is to get to a million plus lives that we've taken away, pain and suffering.
Dan Humiston: [00:06:36] Yeah. I think the idea of pooling all the different resources and what is called a master of masterminding.
David Metzler: [00:06:43] So we have our entrepreneurs get together on a quarterly basis with the other entrepreneurs in our portfolio and talk about what their products are. We're working with a marketing techniques, are working with the supply chain issues, and we coordinate that so that they actually have a collaboration forum because these people often feel very lonely. And that gives them a way to not feel lonely and scale and not make the same mistakes that others are making.
Dan Humiston: [00:07:06] Entrepreneurs in general feel lonely just because you're sort of on an island. It's a great benefit to have other founders that you can bounce ideas off of. I think the part that I don't want to do the listeners to lose sight of is that in addition to that, they can tap into the resources that your group brings to the table, your experiences, entrepreneurs you ever experience at raising capital, your board of directors or your other investors have a lot of experience.
David Metzler: [00:07:30] I'm so honored to work with did the best that I've collected over the last 20 years and work with the team know my CMO built a nine figure brand called Bullet Proof from almost Inception all the way up to that number. So he knows all the problems. My CEO ran the division of Microsoft. Up to 250 million as well. Like when he was in its 20s. So we have these amazing entrepreneurs. My finance person and data person knows what's going to happen in these companies before they actually happen. So we create these integrated financial forecast models for these entrepreneurs and we can actually coach them and teach them what's going to happen ahead of time using data. So my team comes alongside them and really avoids the pain that they're inevitably going to stumble on to. And then it's just a great advantage for them to get to work with these people that they could never afford on their own. And for investors to know that their money is coming into us and then it can be protected because these entrepreneurs and my team can help me. Doctor Neuse.
Dan Humiston: [00:08:30] I want to take a quick break to play a preview of a special Cannabis and Korona report.
Trent Overholt: [00:08:36] The history of Cannabis branding is pretty unsophisticated. It was just loud trying to be louder than the last version of loud. And now it's there's a lot of different players that are doing it with things that speak to their segments, whereas before there really wasn't a lot of segmentation. Like I made this for guys, the thinking do looks like I do. They were just kind of marketing to each other. So it was okay that we're talking about this product as if it's medicine and we're going to call it poison or crack.
Dan Humiston: [00:09:04] Tune in on Thursday for another episode of the Cannabis and Korona report with Trent Overholt from the 14th round. And now let's get back to today's show.
Dan Humiston: [00:09:17] I heard you in an interview and you said that your vision is to build a nine figure organization by 2022. Is there going to be opportunities for people to invest in this vision?
David Metzler: [00:09:27] Yeah, we're just closed off the end of our last bridge round, like literally today. Money is wired in. So we'll take a few more checks from people that are interested. But now that we have a proven model, we're moving into a series day. Allow us to kind of get another five to 10 million dollars worth of revenue acquired into our portfolio family. And with that, it'll be a great outcome for investors to not being just one CVD company. But they can hedge against that and really be part of a family of different brands of different products. And so they love that strategic diversification.
Dan Humiston: [00:09:59] I think as a potential investor, I would like that as well. Your contact information is going to be in the show notes. If you're a CBD company or you're an investor and you want to learn more about this. You just click the link in the show notes or read M.J. Blackcomb. David, I wish we had more time to talk about this.
David Metzler: [00:10:16] It's really exciting that we could go on for hours and I could go through all of our strategy. But the point is still the same, which is this is a great market and I appreciate you being there to help these entrepreneurs like we are as well. You're doing it a different capacity, but there's hard times coming and guys like you and I are here to make sure that people succeed through those hard times. And that's worth doing.
Dan Humiston: [00:10:37] I appreciate it. And thanks for being on the show today. Let's do it again.
David Metzler: [00:10:40] Honored? Yeah. Oh, definitely do it. Thank you.
Dan Humiston: [00:10:45] Today's show was made possible by the generous support of our sponsors, like all 36. The country's premiere block chain 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 dot com. Today's podcast was produced by MJ Bles Media. The industry's premier Cannabis podcast network with original music produced in part by Jamie Humiston.
Dan Humiston: [00:11:12] I'm Dan Humiston and you've been listening to the Raising Cannabis Capital podcast.
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