Like any other industry, cannabis needs capital to expand as more countries are looking at ways to regulate the plant and its products. For the general counsel at firms that invest only in cannabis companies, keeping up with that regulation is a large part of the job.

Matthew Mundy, the general counsel of the Canada-based Canopy Rivers, said not only is he making sure Canopy Rivers is up to date on the latest regulations, but that the company's 18 portfolio companies are also compliant with various laws around the world.

"Compliance is at the heart of my job," Mundy said. "Increasingly, countries around the world are beginning to approach cannabis regulation reform in a really serious way."

Jeffrey Schultz, the general counsel and chief compliance officer of Navy Capital, a private venture firm that invests in cannabis companies, based in New York, said his job is not much different from the general counsel who works at any other private fund manager. However, he is keeping a constant eye on state cannabis laws.

"One nuance of my role is to support our investment team by closely monitoring legal developments at the federal and state level, which often inform our investment views given the balkanized, rapidly evolving nature of the industry today," Schultz said. "It's a unique opportunity to support alpha generation efforts in a role that is most often viewed as a cost center."

The need to be in front of and paying attention to regulation for firms that allocate capital in the cannabis industry is important. Canopy Rivers does not invest in vertically integrated companies. Mundy said the company would rather work with disruptors in the industry who have niche expertise in one or two parts of the business.

"We have to ask does this make sense for us from an investment perspective," Mundy said. "For me, it makes things more difficult, but it also makes things so much more exciting."

Along with other general counsel, Mundy said he has more to do than keep an eye on compliance matters. He sits on the executive team and is involved in every kind of deal the company makes. He said his legal expertise, however, does not end with Canopy Rivers.

"I work super closely with the portfolio companies," Mundy said. "I make sure to keep a strong relationship with them."

The legal team at Canopy Rivers consists of three people: Mundy and two other attorneys. One of whom is an experienced corporate attorney and another who is a marketing attorney who does half of his work with legal and half with the impact team. He said there are no immediate plans to hire additional attorneys.

"One goal we that we have is to keep a lean operating team," Mundy explained. "We're growing quickly and we'll add people on as needed."