WEBVTT - VC Funding for LGBTQ+, Cannabis for Wellness 0:00:00.040 --> 0:00:03.600 You're listening to Bloomberg Business Week with Carol Messer and 0:00:03.680 --> 0:00:08.039 Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. All right, 0:00:08.080 --> 0:00:11.040 So this past weekend, Tim, we saw pride marches around 0:00:11.039 --> 0:00:13.640 the country. We saw marches for women's rights falling Friday's 0:00:13.640 --> 0:00:17.360 abortion ruling. We also honored Juneteenth just one week ago. Today, 0:00:17.480 --> 0:00:19.960 we're thinking a lot about issues of equality and all 0:00:20.000 --> 0:00:23.079 of its configurations and gaps. And so to his Colorful Capital, 0:00:23.280 --> 0:00:25.360 which was launched earlier this month. It's got a mission 0:00:25.360 --> 0:00:28.240 of delivering capital and support to what they describe are 0:00:28.320 --> 0:00:30.640 undervalued business leaders in the l g b t Q 0:00:30.880 --> 0:00:33.640 plus community. We're very pleased this afternoon to be joined 0:00:33.640 --> 0:00:36.960 by Bill Burke are, chief executive officer of TIP, the 0:00:37.159 --> 0:00:40.080 Investment Integration Project. Bill joining us on the phone from 0:00:40.080 --> 0:00:43.640 New York City. Bill, how are you do well? Pleasure 0:00:43.680 --> 0:00:45.360 be here, guys, Yeah, it's great. Great to have you 0:00:45.479 --> 0:00:47.040 with us. Talk to us a little bit about what 0:00:47.080 --> 0:00:50.560 you're doing at Colorful Capital and how you're finding, uh, 0:00:50.840 --> 0:00:54.800 the the talent of the lgbt Q plus community. Yeah, 0:00:54.880 --> 0:00:57.960 sure so so Coloso Capital. We're launching it twenty million 0:00:58.000 --> 0:01:03.320 dollar venture fund. Um really targeting investing in scalable, early stage, 0:01:03.400 --> 0:01:07.720 venture backable enterprises led by lgbt Q plus founders and leaders. 0:01:08.120 --> 0:01:10.800 And the whole kind of investment thesis is really around 0:01:10.840 --> 0:01:14.640 this idea that these these kinds of founders that represent 0:01:14.800 --> 0:01:17.399 these different segments of the community are kind of routinely 0:01:17.440 --> 0:01:21.080 undervalued um by the venture capital space for all sorts 0:01:21.080 --> 0:01:23.400 of reasons. So that's really what we're trying to say 0:01:23.480 --> 0:01:27.080 is like, look, there's these kinds of founders typically have 0:01:27.200 --> 0:01:29.600 less access to early stage capital. They says, all sorts 0:01:29.600 --> 0:01:32.839 of discrimination when raising capital, and this kind of leads 0:01:32.840 --> 0:01:35.880 to this underfunding of viable businesses that both friends and 0:01:35.920 --> 0:01:39.240 family UM and seed stages. And that's essentially what Colorful 0:01:39.280 --> 0:01:42.200 Capitals next to is we want to step in there. So, Bill, 0:01:42.240 --> 0:01:44.240 how do you see it playing out? Because money is 0:01:44.280 --> 0:01:47.400 one thing, right crucial for anybody who's starting up a business, 0:01:47.560 --> 0:01:49.960 especially if they can't bootstrap it. But I mean it's 0:01:50.000 --> 0:01:53.960 also the network that you know, I think about investors, 0:01:54.000 --> 0:01:57.480 whether Sin Silicon Valley or Angel investors bring along with 0:01:57.560 --> 0:02:01.160 them to help these companies, these start ups you know, 0:02:01.320 --> 0:02:05.400 become something. Oh yeah, So I mean that's also part 0:02:05.400 --> 0:02:07.280 of what we've been thinking about too, right, So it's 0:02:07.360 --> 0:02:11.480 this whole idea of saying, when you have um folks 0:02:11.520 --> 0:02:14.480 that are kind of routinely overlooked, so you're not just 0:02:14.639 --> 0:02:17.480 bringing capital to the table, but you're also kind of 0:02:17.560 --> 0:02:19.760 starting from this position, at least for Megan and I, 0:02:20.040 --> 0:02:22.400 where we are members of the community and so we 0:02:22.520 --> 0:02:25.840 kind of already approached this from a unique position of trust, 0:02:26.200 --> 0:02:28.359 and so as part of that position of trust, it's 0:02:28.360 --> 0:02:30.720 also saying, yeah, we're gonna come up with capital, but 0:02:30.919 --> 0:02:33.800 we're also we also have a big roster adventure advisors 0:02:34.000 --> 0:02:36.720 that essentially will come rides shotgun with us to essentially 0:02:36.880 --> 0:02:39.760 provide a lot of the kind of sector expertise and 0:02:39.840 --> 0:02:43.280 all sorts of the scaffolding and support that's necessary to 0:02:43.400 --> 0:02:47.240 ultimately help enable success for these founders and the enterprises. 0:02:47.400 --> 0:02:49.400 So we're doing that a lot of that work to say, 0:02:49.440 --> 0:02:52.600 like we may be focused on seed and precede, but 0:02:53.040 --> 0:02:55.399 there's also kind of the angel rounds and then there's 0:02:55.440 --> 0:02:58.680 subsequent rounds and making sure that we're collaborating with others 0:02:58.680 --> 0:03:01.280 of the industry to make sure that people really see 0:03:01.320 --> 0:03:03.680 this as a kind of spectrum, as a value chain 0:03:03.800 --> 0:03:06.160 that they can slot into and that we can be 0:03:06.240 --> 0:03:08.519 useful in all sorts of ways beyond just saying, hey, 0:03:08.520 --> 0:03:10.480 here's a check. We're going to also try to really 0:03:10.919 --> 0:03:13.840 um invest significantly and really provide the kind of support 0:03:13.880 --> 0:03:16.519 that is otherwise kind of missing. Right now, Hey, Bill, 0:03:16.560 --> 0:03:18.960 talk to us about the LPs here and where where 0:03:18.960 --> 0:03:21.239 you're raising the money from. We understand where the money 0:03:21.320 --> 0:03:24.640 is going, but where are you getting it? Yeah? Ultimately, 0:03:24.680 --> 0:03:27.079 I mean so like with any venture fund, I mean, 0:03:27.200 --> 0:03:30.280 it's gonna be a combination of our kind of network 0:03:30.320 --> 0:03:33.359 where Megan and I essentially come from. I don't know 0:03:33.480 --> 0:03:36.880 what extent impact investment is a can be a bit 0:03:36.920 --> 0:03:39.400 of a progative term right now, um, but we come 0:03:39.400 --> 0:03:42.320 from the impact investment, impact investigating, and sustainable finance world. 0:03:42.600 --> 0:03:45.280 So a lot of the networks that will be leveraging 0:03:45.320 --> 0:03:47.640 to bring into this in terms of LPs, but also 0:03:47.680 --> 0:03:50.119 venture advisors and others are going to really come from 0:03:50.120 --> 0:03:52.760 that world. So it's going to be a combination of 0:03:52.880 --> 0:03:58.120 family offices, foundations, endowments, folks that essentially are are looking 0:03:58.160 --> 0:04:01.480 at this with a very kind of impactful lens in 0:04:01.520 --> 0:04:04.200 some cases, but others that are saying, look, we see 0:04:04.520 --> 0:04:07.440 this untapped opportunity. So we want to really get aggressive 0:04:07.440 --> 0:04:11.280 here um and so really trying to leverage that entire world, 0:04:11.400 --> 0:04:14.600 but then go beyond it. So so that will include 0:04:14.800 --> 0:04:18.800 other members to the teacher plus community, UM and well beyond. Well, okay, 0:04:18.839 --> 0:04:20.360 so let's talk a little bit about you know, when 0:04:20.360 --> 0:04:22.800 you are having these conversations raising funds, what are the 0:04:22.800 --> 0:04:25.440 conversations that you're having that say, Okay, you know, obviously 0:04:25.720 --> 0:04:29.480 these people want to support your mission at Colorful Capital, 0:04:29.920 --> 0:04:31.480 but at the same time, they want to see a 0:04:31.520 --> 0:04:33.640 return on their investment. So so talk to us about 0:04:33.640 --> 0:04:35.640 the data that you have that says, okay, these types 0:04:35.640 --> 0:04:39.880 of investments are going to return outside returns based on 0:04:39.880 --> 0:04:43.320 a benchmark. Oh. Absolutely, Yeah, so this is part of 0:04:43.360 --> 0:04:47.039 the whole thing, right, this has to look, taste, and 0:04:47.080 --> 0:04:50.800 smell like traditional VC exactly what it is. So there's 0:04:50.839 --> 0:04:52.760 a lot of studies that have come out that essentially 0:04:52.960 --> 0:04:56.000 point to the fact that diverse teams lead to outside returns, 0:04:56.040 --> 0:04:58.840 particularly in the context of VC, and so there's all 0:04:59.000 --> 0:05:00.560 you know, depending on which the you points to, it 0:05:00.600 --> 0:05:03.320 can lead to improve risk management, increased I r R. 0:05:03.440 --> 0:05:05.160 So there was this one study that talks about a 0:05:05.240 --> 0:05:08.160 tempercent increase in diversity and DC fields at one point 0:05:08.200 --> 0:05:11.400 five percent increase in I R r UM. Others points 0:05:11.400 --> 0:05:14.760 to increase valuation. So this is mind you, a lot 0:05:14.800 --> 0:05:16.839 of this is also speaks to the problem. There's not 0:05:16.880 --> 0:05:20.599 a lot of studies that points specifically to LGBTQ plus community, 0:05:20.760 --> 0:05:22.760 but you can use proxies, right and so for one 0:05:22.760 --> 0:05:25.799 of them, they talk about for gender balanced teams, step 0:05:25.839 --> 0:05:28.760 up valuations for thirteen percent higher than teams with less 0:05:28.800 --> 0:05:31.919 than ten percent women in leadership. So stuff like that 0:05:31.920 --> 0:05:34.120 where you can start to get together this kind of 0:05:34.160 --> 0:05:38.520 tapestry that shows, look, this is a really promising thing. Um, 0:05:38.520 --> 0:05:41.360 it will lead to outside returns and guess what, it's 0:05:41.480 --> 0:05:44.400 routinely overlooked and undervalue. So that's where we can kind 0:05:44.400 --> 0:05:46.560 of essentially help bring that to the four. Well, great 0:05:46.600 --> 0:05:48.360 to hear what you're up to. Bill Burkhard he is 0:05:48.400 --> 0:05:50.640 a CEO of t i P, the Investment in the 0:05:50.880 --> 0:05:54.520 Integration Project. He's also co founder of Colorful Capital. Joining 0:05:54.600 --> 0:05:57.160 us on the phone in New York City. So about 0:05:57.160 --> 0:05:59.520 two weeks ago, The Bloomberg noted that the US cannabis 0:05:59.520 --> 0:06:03.760 markets is expected to reach forty billion and expected to 0:06:03.800 --> 0:06:06.200 expand at a compound annual growth rate of nearly fIF 0:06:06.839 --> 0:06:08.840 over that time. That's a new report, Tim, that's up 0:06:08.839 --> 0:06:12.240 by grand View Research. Growth driven at least this report 0:06:12.279 --> 0:06:16.400 said by increased legalization. Okay, so with this increased legalization, 0:06:16.600 --> 0:06:19.559 how are people who are using cannabis using it? Well, 0:06:19.560 --> 0:06:22.400 Curely just got some new data. They did this survey 0:06:22.560 --> 0:06:25.600 with Harris poul and it found that of adults who 0:06:25.600 --> 0:06:27.240 are over the age of twenty one who have ever 0:06:27.320 --> 0:06:31.200 consumed cannabis, they've actually done so for health and wellness purposes, Carol, 0:06:31.279 --> 0:06:34.799 as opposed to well, you know, recreational, I would suppose. 0:06:35.520 --> 0:06:37.600 All right, so let's get to our guests with us. 0:06:37.960 --> 0:06:41.479 Is Stacia Woodcock. She is clinical cannabis pharmacistic Curely joining 0:06:41.560 --> 0:06:44.320 us via zoom in New York City. So tell us 0:06:44.320 --> 0:06:46.080 a bit more about how people are using it, because 0:06:46.120 --> 0:06:49.440 we do see growth, um Stacia in the industry. So 0:06:49.680 --> 0:06:52.760 tell us a bit more though about specifically where people 0:06:52.800 --> 0:06:55.760 are using it and for what reasons. Yeah, you know, 0:06:55.839 --> 0:06:58.760 I think, um this survey really helped clear up a 0:06:58.839 --> 0:07:01.440 lot of the stigmas around nding cannabis. People think that 0:07:01.560 --> 0:07:05.320 it's for escapism. For you, know, fun recreational purposes, But 0:07:05.360 --> 0:07:07.359 what we're really seeing is it, by and large, the 0:07:07.360 --> 0:07:10.080 people that are consuming cannabis are doing so for help 0:07:10.120 --> 0:07:13.080 and wellness. It's for stress, it's for anxiety, it's for sleep. 0:07:13.480 --> 0:07:15.600 And the bigger takeaway is it over half of these 0:07:15.600 --> 0:07:19.440 people are using cannabis instead of pharmaceuticals. And I think 0:07:19.720 --> 0:07:22.120 one thing the COVID nineteen pandemic did was sort of 0:07:22.160 --> 0:07:27.000 shift people towards more UM natural homeopathic sort of remedies, 0:07:27.000 --> 0:07:29.240 and cannabis falls into that for a lot of people. 0:07:29.760 --> 0:07:32.280 How are they using it? Not not? What are they 0:07:32.320 --> 0:07:34.080 using it for? How are they using it? Are they 0:07:34.200 --> 0:07:37.880 eating edibles? Are they smoking it? Or are they Yeah? 0:07:38.480 --> 0:07:41.280 I mean, I think that's the most fascinating fascinating thing 0:07:41.320 --> 0:07:44.480 about it. People think cannabis, they think smoking UM. Smoking 0:07:44.520 --> 0:07:46.360 is actually bad for you, no matter what it is. 0:07:46.400 --> 0:07:49.040 So we see a lot of vaporization UM and I 0:07:49.080 --> 0:07:51.880 think that's a good opportunity to remind people that we're 0:07:51.880 --> 0:07:54.920 talking about legal, regulated products, and these are products that 0:07:54.960 --> 0:07:58.320 are sold through legal state markets. They're tested, they don't 0:07:58.400 --> 0:08:01.640 have pesticides, they don't have continent eminence, there's nothing else 0:08:01.840 --> 0:08:05.920 in these vaporized products other than pure cannabis oil and 0:08:06.080 --> 0:08:09.440 the turpenes found within the plant um. That's really important 0:08:09.520 --> 0:08:12.120 because illicit market products are not regulated that way. We're 0:08:12.120 --> 0:08:15.560 seeing a lot of contaminated products, so these regulated products 0:08:15.560 --> 0:08:18.720 are are much safer for people to consume. But we're 0:08:18.760 --> 0:08:23.000 also seeing the pharmaceutical industry technology brought into cannabis. So 0:08:23.280 --> 0:08:25.800 if you think of a traditional cannabis edible that takes 0:08:25.800 --> 0:08:27.560 like an hour to kick in and can last for 0:08:27.640 --> 0:08:31.520 eight hours, we can change that with nanoformulation that makes 0:08:31.520 --> 0:08:33.920 cannabis easier to be absorbed by the body, so you 0:08:34.000 --> 0:08:37.240 can consume it in a beverage in a gummy formation. 0:08:37.400 --> 0:08:39.240 It's going to work in like fifteen minutes and only 0:08:39.320 --> 0:08:41.480 last for an hour or two. So people can really 0:08:41.520 --> 0:08:44.960 customize the products that you're they're using to the symptoms 0:08:44.960 --> 0:08:46.880 that they're looking for. If you want to sleep all night, 0:08:46.920 --> 0:08:49.240 you can use something that's gonna last all night. If 0:08:49.240 --> 0:08:52.040 you just need something for anxiety or stress, right now, 0:08:52.600 --> 0:08:55.360 we have products for that too. So the versatility of 0:08:55.400 --> 0:08:58.440 the products really determined sort of what you're using them for. 0:08:58.720 --> 0:09:01.200 So tell me, though, stay so who should be using it, 0:09:01.240 --> 0:09:04.719 because when you say homeopathic and I know there's been um, 0:09:04.760 --> 0:09:08.480 you know, a lot moving forward in terms of greater 0:09:08.640 --> 0:09:13.720 oversight of homeopathic remedies, but I mean, you know, I 0:09:13.760 --> 0:09:15.600 want transparency. I want to know what I'm kind of 0:09:15.600 --> 0:09:18.959 getting into. Yeah. Absolutely. I think one of the things 0:09:19.000 --> 0:09:22.320 that we see a lot are people that are comfortable 0:09:22.360 --> 0:09:26.240 with the idea of cannabis for cancer, for multiple sclerosis, 0:09:26.280 --> 0:09:29.600 for Parkinson's disease, like these really severe disease states, and 0:09:29.640 --> 0:09:31.559 there's a lack of understanding that it actually can be 0:09:31.640 --> 0:09:35.560 utilized for things like arthritis, for menstrual cramps, for migraines, 0:09:35.679 --> 0:09:38.440 for stress, for anxiety. I mean, we have patients and 0:09:38.600 --> 0:09:43.080 consumers coming in all the time for much simpler symptoms, 0:09:43.160 --> 0:09:46.800 and even more importantly, not all cannabis causes euphoria. I 0:09:46.840 --> 0:09:49.440 think that's also a huge misunderstanding that if you use 0:09:49.520 --> 0:09:52.120 cannabis you're going to be stoned. That's absolutely not the case. 0:09:52.200 --> 0:09:56.160 The products come in a lot of different formulations, doses, ratios, 0:09:56.160 --> 0:09:58.920 so we can really customize what you're getting and how 0:09:58.920 --> 0:10:01.439 it's going to affect you for your lifestyle. But I 0:10:01.440 --> 0:10:03.880 guess what I wanted to go back to is remind 0:10:03.880 --> 0:10:06.560 me where we are in terms of FDA oversight of 0:10:06.600 --> 0:10:09.280 all of this. There's yeah, there is no FDA oversight 0:10:09.480 --> 0:10:13.040 right now. It's all state by state regulated UM. But 0:10:13.040 --> 0:10:15.680 that's where that regulation comes into place. So the testing, 0:10:15.760 --> 0:10:20.160 the formulations, all of that is essentially pharmaceutical grade UM 0:10:20.280 --> 0:10:23.120 even without FDA oversight. Do we get to a point 0:10:23.120 --> 0:10:25.679 where there is that FDA oversight or we get to 0:10:25.720 --> 0:10:28.839 a point where you know, I'm actually going to my 0:10:28.960 --> 0:10:33.160 primary care physician and she or he is recommending that 0:10:33.240 --> 0:10:36.439 I go to the pharmacy and pick up some cannabis, 0:10:36.520 --> 0:10:39.800 not going to you know, a dispensary exactly. Yeah, I 0:10:39.840 --> 0:10:43.480 mean that would require federal, federal legalization, and that's something 0:10:43.480 --> 0:10:46.320 I think the industry is definitely moving toward UM because 0:10:46.400 --> 0:10:49.559 access is huge. Like right now, UM, someone who is 0:10:49.600 --> 0:10:51.960 a patient in New York, say they can't travel to 0:10:52.000 --> 0:10:54.880 a different state legally with their medicine UM, and that's 0:10:54.880 --> 0:10:57.640 a problem. So we need that accessibility to open up 0:10:58.080 --> 0:11:00.480 UM for people to be able to consume and have, 0:11:00.960 --> 0:11:02.559 you know, whatever they're using it for, to be able 0:11:02.559 --> 0:11:05.640 to cross state lines, have consistent product UM. You know, 0:11:05.679 --> 0:11:08.160 that's all something we're moving toward. But I think, you know, 0:11:08.360 --> 0:11:10.760 removing the stigma and seeing what people are using it 0:11:10.800 --> 0:11:12.760 for is a huge step in that direction. There's a 0:11:12.800 --> 0:11:17.200 lot of fear and um miseducation and misunderstanding around cannabis, 0:11:17.200 --> 0:11:19.360 and I think the more transparent we are about why 0:11:19.440 --> 0:11:22.000 people are using it really helps more people get on 0:11:22.040 --> 0:11:24.920 board with the idea that this this really is something 0:11:24.960 --> 0:11:27.760 that people are utilizing or utilizing it safely and it's 0:11:27.800 --> 0:11:30.200 really helping them. Well, yeah, and I do wonder like 0:11:30.320 --> 0:11:32.600 I certainly have tapped into it on the cosmetics side, 0:11:32.600 --> 0:11:34.920 and I know we've had some guests on whether it's 0:11:35.320 --> 0:11:37.920 bombs and you know, lip things and so on and 0:11:37.960 --> 0:11:40.240 so forth. That's more than just CBD, Carol, it's like 0:11:40.280 --> 0:11:43.240 actual cannabis or is it CBD? That's a good question. 0:11:43.280 --> 0:11:45.480 I think it's just CBD. So this is different. Yeah, 0:11:45.480 --> 0:11:48.280 this is different. This is this is the actual Well, 0:11:48.320 --> 0:11:52.800 how would you explain the difference, statia, because so it's tricky. 0:11:52.880 --> 0:11:57.160 So cbd um is a cannabinoid, which are the active 0:11:57.240 --> 0:12:01.200 ingredients found in cannabis. Hemp is cannabis um. It's just 0:12:01.520 --> 0:12:05.000 a term that we use for cannabis that grows with 0:12:05.240 --> 0:12:07.199 very little th HC in it. But it's still a 0:12:07.240 --> 0:12:10.680 cannabis plant hemp UM, but we differentiate by calling it 0:12:10.760 --> 0:12:13.600 hemp cbd. That's what can be sold over the counter, 0:12:14.160 --> 0:12:17.559 and that has no FDA oversight for testing requirements or 0:12:17.600 --> 0:12:21.120 regulations at all UM, and so that's where that can 0:12:21.120 --> 0:12:24.640 be really tricky. I always say use hemp cbd with caution. UM. 0:12:24.679 --> 0:12:28.239 The cannabis products and dispensaries come from cannabis that contains 0:12:28.720 --> 0:12:32.240 varying amounts of th HC, and almost all of the 0:12:32.320 --> 0:12:35.920 states regulated much more strictly than hemp cbd, which really 0:12:35.920 --> 0:12:38.640 has no oversight. UM. There are a lot more rigorous 0:12:38.679 --> 0:12:42.600 testing requirements, and what we're seeing now trending. I think 0:12:42.600 --> 0:12:44.520 a lot of people they know about th HC and 0:12:44.600 --> 0:12:47.440 cb D as the two main active ingredients, but there's 0:12:47.440 --> 0:12:49.960 over a hundred different cannabinoids in the plant. So there 0:12:50.160 --> 0:12:52.439 we call them the minor cannabinoids th h C, V 0:12:52.760 --> 0:12:55.680 C B G, C b N, and almost all of 0:12:55.679 --> 0:12:58.080 them are non euphoric and can be used to support 0:12:58.280 --> 0:13:00.679 different sort of health and well in needs. So we're 0:13:00.679 --> 0:13:03.800 seeing even bigger friends shifting towards these minor cannabinus. Right, 0:13:04.440 --> 0:13:07.880 people can take almost like a supplement UM without euphoria, 0:13:07.960 --> 0:13:10.080 and they can just help keep their body in balance. Well, 0:13:10.160 --> 0:13:12.600 this conversation reminds us that we're still learning a lot 0:13:13.160 --> 0:13:16.400 along the way. Doctor Stacia would Coux, she's clinical cannabis 0:13:16.400 --> 0:13:18.800 pharmacist of Cure Leaf, joining us via zoom from New 0:13:18.840 --> 0:13:20.960 York City. I mean, you know, Tim, we've been talking 0:13:20.960 --> 0:13:22.600 about it for years. We've seen it play out in 0:13:22.600 --> 0:13:25.200 the financial markets, but it does feel like it still 0:13:25.240 --> 0:13:29.040 has a ways to go. Regulators, if you're listening, federally 0:13:29.200 --> 0:13:31.640 got crypto, you get cannabis. We got a lot of 0:13:31.679 --> 0:13:36.439 thing happens first. Maybe al right, guys, that's gonna do 0:13:36.520 --> 0:13:39.000 it for this Monday for Tim's Dantavik in the Houl 0:13:39.000 --> 0:13:40.960 Bloomberg Business Week team. Good to be back, Have a 0:13:41.080 --> 0:13:42.680 safe evening. This is Bloomberg.