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An Oregon Lawyer Launches New Program To Help Women In Pot Biz

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Even in this supposedly enlightened #MeToo age, gender bias still permeates every facet of every industry, stunting women-led companies from reaching their highest potential. A key challenge for female entrepreneurs is raising capital beyond family and friends. Last year, according to Pitchbook data and reported by Fortune, women-led businesses snagged a mere $1.9 billion of the $85 billion total invested in VC deals. That’s about 2.2 percent. Conversely, men-led companies grabbed about $66.9 billion in VC money or about 79 percent.

These are dire statistics. They're also the prime catalyst behind the formation of The Initiative, a newly launched Portland, Oregon-based accelerator devoted to female cannabis entrepreneurs. The brainchild of Amy Margolis, 41, founder of the Oregon Cannabis Association, one of the largest state cannabis trade groups in the U.S, The Initiative is seeking to fix a gender discrepancy that has long plagued other industries.

Samuel Gehrke

It’s a tall order but Margolis, a 17-year practicing attorney who once specialized in criminal law, seems confident her new venture is up to the task. Given how entrenched gender bias is, it won’t be an easy feat. “As legalization happens across the country, we’re seeing more traditional capital and people from more traditional businesses come into the space,” explains Margolis. “But they’re bringing with them the same problems. As we see this influx, we see women’s access to capital decrease even more than what it was before.”

The Initiative seeks to remedy this by helping women cultivate and solidify the one thing they lack to score those hefty financing deals—relationships with investors. Rather than offer a certain amount of financing, The Initiative is giving each business an opportunity at the close of the program to pitch to a “large pool of investors,” which include funds, high-net worth individuals and family offices. Says Margolis, “We’re giving them access to this curated group of investors who are ready and willing to invest larger amounts of money necessary in these female-run businesses.”

Okay, but how is that different from the TV show “Shark Tank” where wide-eyed entrepreneurs pitch their fledgling products or businesses to a panel of demanding investors?

Samuel Gehrke

Well, for one, they won’t be cold-pitching. The investors will be actively involved in the program, which means the entrepreneurs will not be meeting them the first time when they pitch. “They’ve been coached by these same people,” adds Margolis. “We’re actually helping them create that relationship prior to pitch day.”

Although The Initiative is similar to other accelerators in that it offers startups and early-stage businesses the tools and training to grow and be successful, there are differences. First, businesses must have at least one female founder. Second, businesses must already be operational and past the concept stage; however, there is “no revenue threshold.” And third, businesses must be in the consumer-packaged goods sector. Exceptions will be made to “people doing interesting things,” such as creating a new app to order cannabis or setting up a new retail model. Anything deemed unusual or innovative is welcome.

Margolis is looking to accept eight businesses in the inaugural session, which will begin early next year and run for three months. She is hoping to have three sessions per year and expand to other legal states, creating regional points for enrollment in The Initiative. But this only applies to states where the licensing process is looser and not “hyper-competitive” versus those that have a stringent procedure. Margolis cites California and Massachusetts as examples of the former. “That openness allows people to feel there’s opportunity,” says the University of Oregon School of Law grad.  In Oregon, medical marijuana has been legal since 1998 and recreational use was legalized in 2015.

Samuel Gehrke

In addition to The Initiative, Margulis has also launched The Commune, a co-working space for all cannabis entrepreneurs, not just women. “It’s meant to capture the collaborative spirit of the industry,” says Margolis. Located in an “historic building in Old Town Portland filled with light,” according to the press material, the Commune houses The Initiative and hosts business classes, bootcamps, incubator opportunities and speakers.

Applications for The Initiative will be available online and be accepted on September 1. The first round will be a vetting process while the second round will consist of candidates showing some financial documentation and legal proof of their cannabis operations, such as a license. Candidates will also be asked to submit to an interview either via skype or at the Commune premises. There is no application fee. Decisions on accepted applicants will be made during an Oregon retreat in October for women cannabis entrepreneurs.

The Initiative is open to women all over the world. For those coming out of state or into the country, The Initiative will provide help in locating housing, says the website.

Iris Dorbian is a New York City area-based business journalist who covers the legal cannabis sector. Follow her on Twitter or Instagram.