Cliintel Capital with CIO Rick Batenburg
Cliintel Capital with Chief Investment Officer Rick Batenburg today on Blunt Business with Jorge Hermida only on Cannabis Radio. Our next guest represents Denver-based premier cannabis and tech venture capital and consulting firm that provides guidance, capital strategy, and corporate governance to companies in emerging markets. Rick’s former Financial Advisor & Private Equity Specialist at Merrill Lynch, and he has assisted cannabis startup companies with capital strategy, corporate governing, and investor relations and mentors C-suite executives through growth and funding processes as Cliintel’s CIO. We talk about the commonalities and the contrast between the mainstream sector and what Rick encounters regularly in the cannabis side of VC and consulting. Rick was interviewed by Forbes at the end of the last year in a story titled: 2022 Will Be Year Of Consolidation And Competition For Cannabis.
Rick said: “Regulations, marketing, and scale. Cannabis, in its current regulatory environment, is not adaptable or scalable. The market is experiencing arrested development due to crippling tax regulations, a lack of institutional banking, and the commoditization of the plant, leaving operators with little to no margin for revenue and further incentivizing the consolidation of the industry. Creating an emotional connection with consumers will continue to be key to success in cannabis, much like any industry. But in cannabis, brands must also create a strong connection with budtenders, who are highly influential in shaping consumers’ buying preferences. You can spend all the money you want on marketing, but if the budtender suggests a different product, then you can’t win. By consolidating and growing, companies enhance their ability to execute comprehensive multi-pronged marketing strategies that engage consumers and budtenders at all levels. Surviving 2022 is possible by creating a consistent product, building an authentic brand, and gaining as much shelf space in as many dispensaries in as many states as possible.” So we dive into how well that prognostication held up and much more.