Marijuana Business Magazine November December 2018

going through 500 Startups, we got additional traction with our product and then raised $1.6 million,” Milton said. “It still wasn’t easy: We had to pitch more than 150 different investors and collected the round primarily in $25,000 and $50,000 chunks.” Raising $8 million in August 2017 was difficult, too. “There weren’t very many investors who would write $1 million checks to private U.S. compa- nies in the cannabis industry at the time, and again we met with north of 100 people before we could close the round,” Milton conceded. But Milton said he learned a lot from 500 Startups, noting it “taught us we needed to measure everything and really focus on being data-driven with our decision-making. It also helped me become better at fundraising.” He added: “I have learned it takes more meetings than you initially think. When you start to gain traction, don’t slow down. It’s important to keep the pipeline full. Before taking a meeting, first ask investors if they can invest in the cannabis space. Many investors are trying to learn more about busi- nesses in the space but aren’t actually able to invest.” Time to Merge Milton hopes fundraising will soon get a lot easier. Just as the time was right for the B2B switch, he deter- mined in May that it was an opportune moment for Baker to merge with three other companies to become TILT. Baker continues to offer its same ser- vices as a part of the new company. Milton serves as the new venture’s president, overseeing the technology side of the business. He leads software and services divisions – everything that falls under the B2B banner. The four companies – Baker, Oregon-based Briteside Holdings, Massachusetts-based Sea Hunter and Canadian cannabis cultivation company Santé Veritas Holdings – said they have collectively raised more than $150 million in capital securities. TILT plans to use that money to acquire more companies and to operate in every state where cannabis is legal. “Baker is the backbone,” Milton said, “and we’ll be doing additional M&A around that to offer additional services to retailers.” “We’ll be part of a much bigger entity and able to offer more than we could on our own,” he added. “It really comes down to providing more value to our customers. Since TILT is verti- cally integrated, we are able to offer a holistic service approach to business owners in the space.” ◆ Environmental Controls Precise Temperature & Humidity Control • Maximize crop yield • Eliminate relative humidity spikes during lights off cycles • Prevent the formation of mold & mildew • Maintain tight temperature control • UV-C lights for pest control • CO 2 monitoring and alarms Prevent lost crops & maximize the return on your investment with a Precision Air Conditioning & Dehumidification System from STULZ. Air, Glycol &Water Cooled • 3 - 30 Tons of Cooling Capacity • Single & Multi-Compressor Systems www.stulz-usa.com