What is the market opportunity?
The cannabis industry is projected to grow to $16 billion by 2020. Even as new states legalize cannabis each year, banks remain reluctant to provide the industry with financial services. The result is that 80% of cannabis businesses that touch the plant are unbanked and lack access to a range of important services including small business loans.
Every business requires financing to grow, whether that financing is through reinvested profits, equity investments or business loans. Because banks are on the sidelines, it creates an opportunity for Good Tree Capital to supply loans to cannabis companies and deliver well above average returns to our investors.
We believe that there is $1 billion in unmet demand for small business lending.