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HARTFORDBUSINESS.COM | MARCH 20, 2023 21 Economic and Community Develop- ment and Social Equity Council to help support the cannabis industry. The money will be available for various purposes, including low-interest loans for social equity applicants looking to rehabilitate or develop unused or underused real estate for a cannabis establishment. It can also be used as capital to establish a cannabis business, or for training programs developed by the Social Equity Council. That state funding will be important as cannabis startups — and even later-stage companies — continue to struggle to access capital, mainly because marijuana remains illegal under federal law, said Ginne-Rae Clay, executive director of the Social Equity Council. Even in Connecticut, industry constraints exist. For example, licensed cannabis companies are subject to municipal zoning approval, which has made it challenging to find real estate. Earlier this month, the town of Simsbury banned retail cannabis sales for 18 months, joining more than 50 municipalities that have either prohibited or placed morato- riums on the marijuana industry. "It's a heavy lift to stand up a busi- ness that has so many restrictions and regulations," Clay said. But venture capital investors — both in Connecticut and nation- ally — have been warming to cannabis-related companies. Last year, Connecticut Innovations (CI), the state's quasi-public venture capital arm, invested $1.25 million in 1906, a recreational cannabis company moving its headquarters to the state. Alison Malloy, managing director of investments for CI, said cannabis businesses continue to be evaluated for potential investment. "We are looking at companies addressing all areas of the market, including product manufacturers, growers, retailers, drug-delivery platforms and other high-growth areas," Malloy said. "Our cannabis portfolio is still in its nascent stages, but we recognize the opportunity and continue to identify scalable, science-based companies in the industry." McPhail, the accelerator program manager, said she hopes some of those companies will be homegrown through Connecticut's newest accelerator program. Later this summer, as part of the program's third phase, accelerator participants will have an opportunity to pitch their businesses to venture investors. ArcView Group, a San Francisco-based venture capital firm that specializes in cannabis-related businesses, will be part of that pitch event. "With our accelerator, we are creating a foundation for our (adult-use) cannabis culture and strengthening the foundation of the cannabis community," McPhail said. GO TO >> WWW.HARTFORDBUSINESS.COM/ HBJ-EVENTS/WOMEN-IN-BUSINESS-AWARDS TOP 25 GET YOUR TICKETS TODAY! MAY 4, 2023 | 5-8PM | AQUA TURF JOIN US IN CELEBRATING 25 INSPIRATIONAL WOMAN IN BUSINESS SUPPORTING SPONSORS