With limited access to banking, burdensome tax policies, capital scarcity, and payment terms that don’t always fit the needs of operators, the cannabis industry is not a place for the entrepreneurially timid or the risk-averse. But for those with a clear vision, significant analytical skills, and a devotion to creative problem-solving, the industry provides unique opportunities.
Just ask Adam Stettner.
Stettner has a long track record in the financial industry, though initially his career seemed destined to take another trajectory. After a post-college stint in the executive suite at clothing retailer Jones New York — where he gained experience in sales and operations — he segued into proprietary equities-trading at a Wall Street firm. There, he nurtured a solid foundation in finance and risk-management that served him well at Student Loan Xpress where, as senior vice president, he built and managed a division that oversaw $8 billion in educational loans.
Leveraging his experience in finance, risk, and scaling, in 2008 Stettner founded Reliant Funding, which provides financing to small and medium-size businesses (SMBs) nationwide. For fourteen years, he oversaw a bicoastal team of 250 people who underwrote more than $3.5 billion in funding.
Then the cannabis industry caught his attention. In September 2021, after several years of researching all the challenges and opportunities, Stettner founded San Diego-based FundCanna, which he serves as chief executive officer. Backed by a team with more than twenty years and $20 billion in funding experience, in the past three years FundCanna has provided more than $300 million in working capital to entities across the cannabis supply chain.
Stettner’s approach to understanding the industry was nothing if not methodical.
“Before launching FundCanna, I dedicated significant time to learning about the industry from multiple angles,” he said. “First, I immersed myself in the regulatory environment at both the federal and state levels. Understanding the nuances of compliance, banking restrictions, and taxation was critical to designing effective financial solutions for this industry.”
Next, he engaged directly with stakeholders in every sector — cultivators, manufacturers, distributors, retailers, and ancillary businesses — to gauge the level of disconnect between what they needed and what they were able to access.
![Adam Stettner, founder and CEO, FundCanna](https://mgmagazine.com/wp-content/uploads/2025/01/2024-12-Adam_Stettner-367.jpg)
“I even traveled to visit operators and see how they managed their day-to-day,” he said. “I wanted to understand their pain points, cash-flow cycles, and growth challenges. This on-the-ground perspective was invaluable in designing and iterating offerings to meet their real-world needs.”
He also joined industry organizations, eventually becoming a member of the board of directors for the National Cannabis Industry Association and joining the Benzinga Advisory Council. Both positions help him to “stay informed about trends, network with industry leaders, and participate in shaping the future of the market,” he said.
He’s also a member of the Forbes Finance Council and an advisor for the Dingman Center for Entrepreneurship at his alma mater, the University of Maryland, and he volunteers at the Ronald McDonald House Charities of San Diego and the San Diego Food Bank.
The volunteerism, advisory positions, and even his work at FundCanna allow him to make a difference in the community, he said. But more than that, they provide him opportunities to learn, which he believes is both a pleasure and a lifelong obligation: “The truth is, no matter how much I continue to read and do, I still have a ton to learn.”
Why did someone who experienced so much success in traditional finance decide to take on a massive challenge like the cannabis industry?
After my success with Reliant Funding and other ventures, I was looking for a new way to leverage my expertise in finance to create a meaningful impact in an emerging market. During the unique time surrounding the COVID-19 pandemic, I noticed a few primary things about cannabis as an industry that drove me to explore bringing what I knew about financing, product development, and problem-solving to the industry.
The industry was deemed “essential” when traditional businesses were forced to close, despite the plant being classified as a Schedule I drug. At the time, thirty-five states had legalized some form of cannabis use. I firmly believed momentum eventually would drive national acceptance. Of the 12,000–15,000 banks that served traditional businesses at the time, fewer than 500 were taking cannabis deposits and less than 5 percent of those were lending to the industry. There are now more than 850 banks serving the industry, and that number is growing.
This led me to several conclusions. One, the industry had untapped potential. It is one of the fastest-growing markets in the world, but it faces unique challenges, particularly around access to capital. Traditional financial institutions remain hesitant to serve this space due to federal regulations, stigma, and the perceived immaturity of the industry, though I disagree with that last one. All of this creates a massive funding gap. In addition, the opportunity for expansion and growth is enormous. If the legal market is $30 billion annually and the illicit market brings in more than $100 billion, what will happen as things normalize?
I also realized entrepreneurs need to be empowered. Cannabis operators are entrepreneurial, passionate, and innovative, but they face hurdles due to the stigma and regulatory complexities of the industry. In the face of everything that is going against them, cannabis operators are some of the most resilient and perseverant of any business operators I’ve encountered.
I also welcomed a personal challenge. At Reliant, I was surrounded by very smart and capable people that enabled me to think freely and lean on them for execution. The company was doing very well on the other side of the pandemic, continuing to grow profitably and needing less from me than it did in years prior. Meanwhile, it is ten times harder to succeed in cannabis than in any other industry. Cannabis is highly and illogically regulated, an evolving market that requires navigating complex legal and financial landscapes with unique supply-chain dynamics and tons of things you cannot learn until you just go do them. Despite this, I wanted to up my skill set and continue to grow.
Additionally, this industry provides a unique opportunity. Cannabis isn’t just about commerce; it’s also about societal change. The industry has the potential to revolutionize healthcare, drive significant economic growth, and create new jobs.
![FundCanna founder and CEO Adam Stettner](https://mgmagazine.com/wp-content/uploads/2025/01/2024-12-Adam_Stettner-696.jpg)
Much of your focus has been on helping small and medium-size businesses gain access to funding. What attracts you to these types of companies?
SMBs are the backbone of the economy. They drive innovation, create jobs, and bring diversity and vibrancy to every community. What attracts me most to working with SMBs is their resilience and entrepreneurial spirit. These businesses are often led by passionate individuals who have identified a need in the market and are willing to take calculated risks to pursue their vision.
Despite their importance, though, SMBs often face significant barriers when it comes to accessing capital. Traditional financial institutions tend to overlook them because they don’t fit into rigid underwriting models. I see this as an opportunity to make a real difference, not just by providing funding, but also by empowering business owners to grow, innovate, and create lasting impact.
In my career, I’ve witnessed how a well-timed financial solution can transform a business. At Reliant Funding, for example, we provided more than $3.5 billion to SMBs. It was rewarding to see the tangible results: new jobs created, businesses expanded, and communities strengthened.
What are you most proud of during your time at Reliant Funding?
At Reliant, we funded approximately 100,000 businesses across the country. Behind those numbers are real stories, business owners who were able to expand their operations, save jobs during tough times, or seize opportunities for growth they otherwise might not have had. Knowing that our work helped fuel their success is incredibly rewarding.
Equally important to me was the company culture we fostered. Reliant grew to employ nearly 250 people. We created an environment where team members felt supported, empowered, and aligned with a shared vision. We focused on values like integrity, customer experience, and innovation, which helped us maintain predictable loss rates even as we scaled to profitably fund $300 million per year to our clients. Two rules born at Reliant will follow me for life: “hard work” and “a great attitude.” They were embedded in our culture and will always be part of my life.
Ultimately, I’m most proud of building a business that made a meaningful difference not just for our clients, but also for our employees and partners. It reinforced my belief that when you combine purpose with execution, the results can be extraordinary.
You’ve won or been short-listed for several leadership awards, including Ernst & Young’s Entrepreneur of the Year and San Diego Business Journal’s Most Admired CEO. How do you view your responsibility as a leader?
Recognition is always nice and can be humbling, but leadership is less about accolades and more about responsibility related to executing on vision, supporting employees, and delivering for clients and investors. I view leadership as a privilege and an opportunity to shape outcomes — not just for the organization, but also for the people who are part of it. My leadership style centers on a few core principles.
First, lead by example. As a leader, you set the tone. Integrity, attitude, work ethic, and accountability start at the top. People notice how you handle challenges, whether you’re transparent, the way in which you approach your work, and how you treat others; it all matters. People emulate things they respect, so I try to give them reasons to respect the company we are building together.
Next, empower people. A leader’s job is to create an environment where your team can learn, grow, contribute, and thrive. When you deliver a productive work culture that is focused on solving problems or fueling growth for an industry and your clients, you are a CEO who leads. Not all leaders are good CEOs, and not all good CEOs are great leaders. I believe in hiring talented people; giving them clear goals and objectives, support, resources, and the trust they need to succeed; and then listening to them.
Also, focus on vision and execution. Great leadership requires a balance of strategy, vision, execution, and appreciation. It’s about inspiring others with a clear purpose while ensuring everyone understands their role in making the vision a reality. I believe the most successful organizations are the ones where everyone feels connected to what they are doing and appreciated for the same.
And you’ve absolutely got to adapt and evolve. The world is constantly changing, especially this industry. I believe a good leader stays open-minded and adapts to their environment while maintaining a desire to always be better and do better. I always look to learn from setbacks, pivot when the business “tells me” it needs a pivot, and keep the team focused on long-term success.
Winning awards like Ernst & Young’s Entrepreneur of the Year or being recognized by Inc. magazine or the San Diego Business Journal is an honor, but the most meaningful validation comes from results. Whether that’s seeing your team and clients succeed, watching the business grow, or hearing from employees that your leadership made a difference in their careers, those are the things that are the most meaningful.
Despite repeated attempts at federal financial reform, the industry is still waiting for any significant legislative action from Congress. Do you think we’ll see legislation this year?
![FundCanna founder and CEO Adam Stettner](https://mgmagazine.com/wp-content/uploads/2025/01/2024-12-Adam_Stettner-199.jpg)
There is legislative momentum. While federal reform remains a work in progress, we’ve seen unprecedented developments. Both the Biden administration and key Republican figures, for the first time in history, have publicly supported reform in some capacity. We just had a presidential race where both candidates offered support. This bipartisan shift signals growing recognition of cannabis as a legitimate industry, not a fringe movement.
The sector has moved beyond its early, fragmented days. Businesses have become more sophisticated in their operations, focusing on compliance, scalability, and sustainability. Technology is playing a larger role in areas like cultivation, product tracking, and consumer engagement, helping to elevate industry standards.
And the industry is becoming a significant driver of economic growth. It generates billions in tax revenue, creates tens of thousands of jobs, and stimulates local economies. This economic impact strengthens the case for further legalization and support at all levels of government.
Globally, countries like Germany, Canada, and Mexico are embracing reform, putting pressure on the United States to maintain its leadership in the industry. International acceptance of cannabis further validates its viability as a mainstream market.
The convergence of shifting public attitudes, groundbreaking legislative changes, and industry evolution gives me confidence we’re on a strong trajectory.
What about the industry’s financial health in 2025? Will we see positive change there?
The cannabis finance landscape may experience significant changes this year due to several key factors. Discussions around federal reform, including potential rescheduling from Schedule I to Schedule III [under the Controlled Substances Act], could materialize. Such a change would ease financial burdens caused by [Section 280E of the Internal Revenue Code], allowing businesses to deduct standard expenses and thereby improving profitability and attracting institutional investors. If rescheduling happens, I believe it will lead to more confidence in the future of the industry as nationally viable.
The SAFER [Secure and Fair Enforcement Regulation] Banking Act, which aims to grant cannabis businesses access to traditional banking services, also could reemerge this year. I am not a huge believer this will be a big difference-maker. Almost every cannabis business that wants to be banked can be. Regardless, every little bit helps. If enacted, SAFER could reduce reliance on cash transactions, reduce the cost of banking, improve cash flow management, and potentially open more options for mainstream financial products like lines of credit and credit card transactions.
With regulatory improvements and greater financial stability, more institutional investors may enter the cannabis space this year. Private equity, venture capital, and hedge funds could provide businesses with the capital needed to scale, increasing competition for high-quality assets. The financial landscape could see an increase in mergers and acquisitions as businesses consolidate to achieve economies of scale and improve efficiency. Access to more robust financing tools will facilitate these deals, further professionalizing the industry.
And with more countries moving toward legalization, cross-border financing and investment could become more prominent. U.S. companies may start to collaborate with international partners, creating new funding streams and expansion opportunities.
You see a lot of balance sheets. Is it fair to say the industry has a problem with past-due receivables?
Past-due receivables are a significant challenge in this industry. Many businesses struggle to keep up with accounts payable while waiting on collections from accounts receivable. This creates a bottleneck, as businesses rely on those receivables to reinvest in operations, pay taxes, or purchase inventory.
One of the most significant issues contributing to the volume of past-due receivables is that payment terms in this industry often do not align with businesses’ revenue cycles. For example, cultivators and manufacturers may have to wait weeks or even months to get paid by distributors or retailers, but they still need to cover operating expenses including labor, utilities, and compliance costs in real time. Similarly, retailers often face significant upfront expenses, such as inventory purchases, while their revenue accrues gradually as products are sold. This mismatch creates a cash-flow crunch that ripples throughout the supply chain. If the average timeline to revenue is three to five months and the average payment for goods and services is zero to thirty days, you have a very large disconnect in cash flow.
This is exacerbated by a lack of credit infrastructure. Because cannabis businesses typically lack access to traditional credit facilities or loans, they operate with limited financial flexibility. This intensifies the impact of delayed payments. The lack of credit infrastructure and the mismatch between revenue cycles and payments due create a doom loop of people not paying, which leads to those they do not pay delaying their payment to the people they owe, and so on.
In addition, at least in newer markets, the cannabis supply chain often expands rapidly, leading to overproduction or misaligned payment terms. Distributors, retailers, and manufacturers may stretch payment timelines as they manage their own cash flow, creating a domino effect up the chain.
And then there’s the tax-burden issue. With federal prohibition and regulations like 280E, cannabis businesses face disproportionately high tax obligations. Without the ability to deduct normal business expenses, companies are left with slimmer margins, making outstanding receivables even more problematic.
Unresolved past receivables create uncertainty about cash flow, profitability, and overall financial health, all of which are key factors investors scrutinize. A company with a high volume of unpaid invoices may appear less stable, which can affect its valuation and attractiveness as an investment.
With venture capital on hiatus, what are the industry’s best options for raising funds?
Despite federal prohibition limiting access to some mainstream financial products, the industry has developed alternative pathways to secure funding. The key is finding the right mix of options tailored to each business’s specific operational and financial goals.
Specialized lenders like FundCanna focus exclusively on the cannabis industry; they understand its regulatory challenges and unique financial needs. These lenders offer programs that are specifically designed to support all aspects of running a business in all areas of the supply chain. Specialized lenders can provide short-term loans—meaning with a term of two years or less—tailored to meet operators’ unique cash-flow needs. These loans are often used for inventory or biomass purchases, nutrients, expansion of grow facilities, supplies, equipment, or adding locations.
Other types of loans also are available. Revenue-based financing involves borrowing against a percentage of future revenues. It’s particularly useful for businesses with steady sales but limited collateral. Many lenders offer loans or leases specifically for equipment purchases, allowing operators to acquire necessary tools without a significant upfront cost. Alternative lenders or cannabis-specific financial institutions provide real-estate loans for purchasing or improving facilities, including cultivation sites or retail dispensaries. In addition, you can explore a “sale-leaseback.” This provides immediate capital while allowing the operator to continue using the asset.
In some states, operators can access funding programs designed to support social-equity applicants and small businesses. These may include grants, low-interest loans, or fee waivers for licensing. And don’t forget trade credit, which many suppliers and vendors in the cannabis ecosystem offer, allowing operators to purchase goods and services with deferred payment terms. This can help businesses manage cash flow without needing immediate capital.
What’s your best advice for the future?
Continue to be a student. There is always more to learn.