Next to tax code 280E, banking is the biggest nightmare in the cannabis industry.
As banking is Federally regulated and cannabis is Federally illegal, the process of purchasing cannabis with electronic funds (credit cards) or paying bills by check provides the very transaction validation that is incriminating and critical to meet guidelines.
There are some financial institutions openly supporting the industry. In fact it my be punny to say the industry is half-banked. But each state has had different success in supporting the industry.
In this talk, I will explain the paradox of banking, why it works better on some states than others and some suggestions to work through and around the banking paradox.
“A free spirit” - says Mark Goldfogel’s mom.
Mark Goldfogel is a self-confessed nerd who published software at the age of 17. He has held management positions at John Deere Corporation and director positions at ADP before opening a technology consulting company in Telluride, Colorado. Mark co-founded MJ Freeway, the cannabis industry’s first “Seed to Sale” point of sale system and then went on to become CEO and co-founder of C4EverSystems, the industry’s first cash management system. Mark currently is EVP Industry Relations for The Fourth Corner Credit Union, the first state chartered institution whose field of membership includes a common interest in cannabis and hemp. Mark is dedicated to helping humanity understand the benefits and responsibilities associated with this important plant.
Mark Goldfogel was an original architect of Seed to Sale Tracking and founded and sold MJ Freeway and C4EverSystems, two technology startups in the cannabis sector. He twice has accomplished the most difficult feat in the industry, exit! He was also instrumental in The Fourth Corner Credit Union which is leading the legal fight to allow banking for the cannabis industry. He consults full time and has helped launch numerous startups as CEO of IWorkForCannabis.com.
MJW Enterprises 1985-1992. Technical Consulting, developing, and software training. Clients included ATT, Atari, Mikey Miller, David Pollock. Sole proprietor.
Wonder-Dog Corporation - 2002-2014. Technical Consulting. Telluride based high end technical consulting. Sold to support MJ Freeway.
Web-Dogs - 2006- sold 2010. WebDogs.com is a web development company that is now one of the leading companies in the heart of Silicon Valley. Sold to support MJ Freeway.
MJ Freeway 2010 - Current. Sold 33% founder equity in November 2013 to avoid personal bankruptcy. I maintain no equity or other interest or responsibility for this company.
C4EverSystems.com - 2013- Current. Sold founder equity in 2017. Banking hardware integration systems for the cannabis industry.
The Fourth Corner Credit Union. No Equity. First advisor, Executive Vice President. Leading the legal fight for banking in the cannabis industry as the senior advisor and plaintiff.
IWorkForCannabis.com - Cannabis industry consulting. Startup, equity-funding, debt-funding, mergers and acquisition, networking, advanced industry problem solving.
Of these companies...
I named all but one and renamed The Fourth Corner to 4CCU, which we will change when we win our court case and open. At that time, I will have named all of them.
Five of these businesses were able to get to cashflow positive without outside investors!
None of these businesses went bankrupt.
Four of these businesses are operational today. One hasn’t opened yet.
Three businesses represented cannabis industry firsts.
Business currently based in San Jose.
Mark GoldFogel can be reached at: [email protected]
Follow Mark GoldFogel on FaceBook: FaceBook.com/mark.goldfogel
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