At last count, 27% of the executive level positions in cannabis are filled by women. While it may be more than the national average of 23% for all U.S. businesses, it’s a dismal number when compared to the 36% of executive positions women in the industry held in 2015. According to Debra Borchardt, Editor in Chief at the Green Market Report, that number has only dropped since.
It’s no secret the cannabis industry’s financial landscape is changing. Large investors and industry newcomers have populated the cannabis space, pushing the original (often female) pioneers out. Women are still suffering the same issues they face in other industries: access to venture capital in particular. We asked cannabis finance guru, Debra Borchardt, some quickfire questions to learn more about the changing landscape and how we can protect women’s seat at the table.
Q
You’ve been in the cannabis space for much longer than many of the “top players” in the industry today. How have you seen the demographics change in the past five years? In particular, how have you seen the demographics of cannabis business owners and other high-level positions–the people holding the power–change?
A
There has been a definite shift for many of the more mature companies in the cannabis industry. We’ve seen several original founders leave their companies as more traditional experienced executives come on board. Running a small scrappy startup is very different than running a company with hundreds of employees. Not everyone is cut out to make that transition. We are seeing people with years of experience in other fields replace those who only had a handful of years running a cannabis business. We’ve also seen many of the women and men who were part of the early days of cannabis as entrepreneurs get founder fatigue and are content in selling their businesses in order to reap the rewards of those early hard years.
Q
How do you feel the financial demands of starting a cannabis company from the ground up are shaping the industry? What can we do to combat that in order to see more diversity and fairness in the industry?
A
The days of starting a dispensary as a Mom & Pop operation are long gone. It takes millions just to apply for a license and many states just keep those application fees whether you get a license or not. So, the retail side now mostly belongs to well-funded multi-state operators. There are still opportunities to create your own product without a huge investment. Many producers will white label their products, so with a small investment and a great brand name & logo, you can start your own cannabis brand. Instead of waiting for someone else to create more diversity, just roll up your shirtsleeves and get busy.
Q
As consumers, our pocketbook is our power. What choices can we make when purchasing cannabis products to best support women?
A
Try to support women-led businesses. There are many edible and vape companies that were founded by women and if your local dispensary doesn’t carry it, ask them about it. They’ll carry the products that customers want. Support their message on social media too. Follow those pages and like those posts. It really does have an impact.
Q
Outside of purchasing power, are there any other things the average person could do to help improve diversity in cannabis?
A
Point it out on social media. Ask why these companies don’t have diversity in the C-suite. If they think that no one will notice, they will never change their ways.
Q
At the time of legalization, the cannabis space was largely female-dominated. Unfortunately, those numbers diminish each year. Why is this and in what ways can we help women maintain their seat at the table?
A
As cannabis loses its stigma, more people are leaving traditional sectors and joining the cannabis industry. The risk is becoming less pronounced and that is attracting more breadwinners (feeling they aren’t endangering their careers or families) which tends to be men. Women felt they could take the risk because their careers weren’t moving anyway. As women, we have to keep putting pressure on companies to give us seats on the board and in the C-suite. We can also demand that the companies we work with must have a diversified executive team. If they aren’t diversified, then we explain why we prefer to work with companies that not only say they believe in diversity but also put it into action.
Q
Women funds and resource groups are becoming more common in the cannabis space as women fight to hold their seat at the table. Can you describe the importance of these new resources?
A
Women-led companies kept seeing that the investment dollars continued to flow towards men-led companies. The answer was that these finance guys tended to lend to people that looked like them – other men. Since they didn’t seem to want to change, various women decided to start their own investment funds so that they too could invest in companies led by people that looked like them. These funds are tremendously helpful because they are also guiding women through the fundraising process which is daunting if you’ve never been through it. In addition to that, we are seeing more women’s networking groups within the industry and that is great to have a “no judgment” zone when you just want to ask questions about hiring an accountant or looking for a lawyer.
Q
It sounds like women need to stick together to keep their spots as leaders in the industry. What advice would you give to those in cannabis who find themselves being the only woman in the room?
A
Point it out and say it has to change. Make that change within your own company. If your company is doing business with an unsavory client, make sure they know why you think it’s a poor choice. I know a firm that wanted to bring on a client known for his social media with scantily clad girls, many of the female employees had no problem expressing their discomfort with this client to their bosses. The top men heard them and opted to not work with the client. If more employees express themselves this way in a productive and thoughtful manner, there will be change. We can draw the line and say this isn’t acceptable anymore.
Q
I’ve heard some crazy tricks women use to level the playing field when seeking investors–whether it is bringing an old white guy with them to the meeting or preparing for double the questions they would get asked if they were male. What advice would you give to female entrepreneurs looking to enter the cannabis space and what should they be prepared for?
A
Be prepared to defend every action your company has taken. Don’t get hung up on competitors that have raised lots of money, while you struggle to get a meeting. It’s counterproductive. Stay focused on your company and work hard to make your numbers better than the competition. Hard work eventually wins out, even if it doesn’t feel that way sometimes. And yes, you may need to bring a professional money-raiser on the team, but that’s okay if it gets the job done.
Q
Your online publication, Green Market Report, focuses on financial happenings in cannabis today. Any advice for the layperson looking to invest in the industry?
A
There are several new ETFs that are a great entry into cannabis investing. Start there as you learn more about the individual companies.
To learn more from Debra Borchardt, get your ticket to the Green Market Summit, happening September 11-12. For more information and to purchase tickets to attend the Green Market Summit and meet Debra, click here. Use promo code GMS20 for 20% off!
All images courtesy of Debra Borchardt.
