There are many startups of cannabis in the United States and around the world, as the marijuana industry continues to grow. Demand for cannabis and cannabis products continues to be high, but regulations pose threats and uncertainty to the industry as a whole.
The global cannabis industry is increasing rapidly. In North America and Europe, legalization policies have a profound impact on both consumers and the investors. Globally, legal marijuana could add up to $66.3 billion in sales by the end of 2025. In the U.S., the industry — currently estimated at $12 billion — is forecast to expand at a compound annual rate of 24.1% by 2025, according to Grand View Research’s 2019 report.
In the European Union, several nations are authorizing or intending to approve the therapeutic use of cannabis or cannabidiol ( CBD) drugs. But more are now getting more familiar with the possibility of allowing legalized commercial cannabis use. In August, Luxembourg declared that it will become the first European country to legalize cannabis manufacturing and use, moving farther than the Netherlands, where recreation is permitted but technically illegal.
Luckily, the future seems bright. This article will help you gain insight into what kinds of cannabis startups are out there and how, together, they comprise the many aspects of this fascinating emerging industry.
This article relies on a StartupLynx analysis. You can access the full radar with the listing of startups involved:
How much are you talking about cannabis? Or better yet, for whom do you stop learning about cannabis?
Progress could not be made without communication.
Imagine making innovative advancements in medicine or science in a world where a majority of the population is reluctant to address these topics. It’s annoying right?
This is still a crucial point with weed. Whether or not cannabis has brought tremendous value to someone’s life, most people are still reluctant to talk about it.
However, these conversations are necessary at any level of society, particularly in order to make much-needed social (and political) progress with this life-changing plant.
Marijuana is one of the fastest-growing markets in the U.S., and perhaps one of the most influential job creators. Remember, cannabis is more than just growing plants. Additional businesses involved in the supply chain of marijuana, including marketing, branding and finance, will also benefit from the expansion of the industry.
American President Biden has not agreed to legalize marijuana for recreational use at the federal level; instead, the administration will reschedule it from Schedule I to Schedule II drug under the Controlled Substances Act and encourage states to lay down their own regulations on recreation. However, he has promised to “support [its legalization] for medicinal purposes.”
U.S.-listed shares of major cannabis manufacturers emerged after Democratic Vice President candidate Kamala Harris said that marijuana would be decriminalized at the federal level in the United States under the Biden administration. Biden and Kamala Harris had promised the people of United States of America about decriminalization of marijuana in their campaign.
As a result of it many cannabis stocks have been increased
Aurora Cannabis, a Canada-based cannabis grower, has seen its share price increasing to 42 per cent, while its Vancouver-based competitor Tilray — whose supporters included Silicon Valley billionaire Peter Thiel — has been raised by 30 per cent.
Cronos, an innovative global cannabinoid company which has a close relationship with world largest tobacco producer and marketers. Previously last year, Altria spent $1.8 billion in Cronos, earning a 45 per cent interest in the cannabis producer. Cronos’ relationship with Altria has earned it a better financial role than any of its competitors in the Canadian cannabis industry.
Cronos is projected to have great growth prospects both at home in Canada and on foreign markets. The introduction of cannabis vaporizers for the Canadian “Cannabis 2.0” industry has so far been successful amid the headwinds of the COVID-19 outbreak.
Americans claiming for cannabis legality
According to a recent Pew Research Center survey, two-thirds of americans claim that cannabis use should be legal, illustrating a gradual growth over the last decade. The percentage of U.S. adults who condemn legalization has dropped from 52% in 2010 to 32% today.
Meanwhile, the vast majority of U.S. adults (91%) say that marijuana should be legal for medicinal and recreational use (59%) or that it should be legal for medical use only (32 percent). Fewer than one-in-ten (8%) choose to keep drugs illegal under all conditions, according to a survey conducted by the Pew Research Center’s American Trends Panel from September 3 to 15.
CEO David Klein of Canopy has told analysts on a conference call that they believe that the victory of Biden as US president is an important step on the way to federal permissibility of cannabis in the US market through decriminalization and descheduling.
Will this stigma end ?
Not all the investors jump quickly into the boat, when it comes to investing in a cannabis startup. Many of them have been reluctant due to the stigma associated with cannabis-based investments. Some investors might not be interested to invest which directly involves the production and sales of the marijuana.
Investors who are more concerned about the stigma associated with marijuana-based startups still have lot of investment opportunities in additional businesses. Such additional businesses include the companies that guarantees security for the medical marijuana dispensaries. As the profit opportunity for marijuana-related companies continues to increase, more investors who previously preferred to stay anonymous about their investments became more likely to be transparent about their investment in the increasing cannabis industry.
Today , the majority of venture capital going to drug businesses is currently routing it’s way to north of the border to Canada, where the federal government has decided to legalize the use of medical marijuana. However, U.S. investments are already on the rise.
According to the National Institute on Drug Abuse, more than 11.8 million young adults have used marijuana in 2018 alone, indicating that the market will be increasing continuously.Source: https://www.drugabuse.gov/publications/drugfacts/marijuana
Promising cannabis startups for investors to invest
Venture funding for cannabis startups appears to be emerging from all directions. Being known as Marijuana Entrepreneurs or Potpreneurs, the pioneers of marijuana startups are betting heavily on the opportunity for marijuana to be approved in more states. Among these startups is Weedmaps, an app that offers people the opportunity to discover medical marijuana dispensaries. Recognizing the future profit opportunities offered by Weedmaps, investors were eager to get on board. Weedmaps was subsequently acquired by General Cannabis, Inc. with a combination of stock and currency.
Another cannabis startup, Leafly, provides consumers the ability to rate and review different weed strains, which is extremely advanced Yelp for the marijuana industry. After its launch in 2010, Leafly has been a leading source of knowledge on cannabis for consumers, manufacturers and brands alike. After spinning out from Privateer Holdings in 2019, Leafly became a totally independent company.
Leafly says that the financial crisis triggered by COVID-19 has put existing investments into Leafly on hold; thus, the company laid of 91 employees on pause to ensure that the company can function without outside funding.
Following the layoffs, Leafly Holdings has 143 staff, half of which are focused on online ordering technologies. The company says it will continue to concentrate on content and tools for retailers and brands.
With much more increasing interest in the growing marijuana cottage industry, it is surprising that so many venture capitalists have diverted their attention and funding to a quickly evolving cannabis technology industry. Leafly is probably not the first cannabis startup to attract investor attention.
As of 2020 may, the following cannabis startup companies have raised more than 10 million:
Eaze delivers the dispensary to the doorstep of the clients. With a technology platform developed to serve the legal cannabis industry, Eaze connects marijuana businesses to customers, allowing companies to distribute a wide variety of items – from vaporizers to edible vegan treats to flowers – through a network of drivers. The network also lets companies comply with regulatory requirements.
Surterra Wellness is committed to the distribution of high quality, cannabis-based, natural medicine. Surterra brand goods are grown in the largest greenhouse on the East Coast of the United States and they are easily and readily accessiblethrough the online marketplace and it come with a range of choices.
Greenbits offers a complete cannabis retail platform and dispensary POS software, It provides business solutions that increase sales and helps ensure companies stay compliant with local regulations. The company boasts that it processes the most transactions, greatest number of sales and serves more retailers than any other software company.
If you’re looking for a luxurious cannabis experience, then you’ll have to check out Canndescent, a luxury cannabis company that provides pre-rolled joints and ultra-premium flower in chic single-gram boxes. Canndescent’s products are tailored to provide five effects: calm, cruise, create, connect, and charge.
LeafLink is the industry standard when it comes to wholesale cannabis marketplaces. Boasting the largest network of compliant cannabis businesses, Leaflink streamlines the cannabis supply chain and has helped enable thousands of brands, distributors and retailers to manage operations, simplify communications and reduce administrative workload.
Baker Technologies is a customer relationship management (CRM) platform uniquely designed to the marijuana industry. Often, due to restrictions and obsolete technologies, marijuana companies are left with less-than-deal options, hindering these company’s abilities to engage with customers and build relationships. These are the problems that Baker Technologies aims to resolve, drawing from their expertise in cannabis, retail and technology. (Baker has been merged into a larger cannabis conglomerate.)
The cannabis startups providing innovative solution for agriculture sector
Trym – Cannabis Farm Management:
Commercial cannabis cultivation is vulnerable to a lot of challenges, including poor product quality, shortage of experienced workforce and strict regulation criteria. As these issues are specific to cannabis, traditional farm management software does not satisfy the requirements of this upcoming sector. Solutions that maintain and streamline all stages of the cannabis farm cycle encourage growers to boost efficiency and profitability.
US-based company Trym is developing cannabis plant management tools for recreational marijuana farmers. The app uses environmental sensors to gather data on temperature, humidity, carbon dioxide and light. The app helps users to build and monitor personalized workflows customized to the strains, rooms and facilities of the grower. In addition, the solution integrates with Marijuana Enforcement Tracking Reporting Compliance (METRC) to enable growers to quickly report adherence data.
Essenza – Medical Cannabis
Recreational use of cannabis is illegal in a huge number of countries. Even then, a significant portion of these do allow cannabis medicinal use and are potential destinations for medical cannabis. The reported medicinal effects of cannabis include recovery from chronic pain, cramping, nausea, epilepsy, insomnia and anxiety.
The Greek startup Essenza is a registered medical cannabis manufacturer. Their growing process and processing facilities conform with the Good Agriculture and Collection Practice (GACP) and Good Manufacturing Practices (EU-GMP) requirements, respectively. The manufacturing line of the startup is capable of packaging the final product as vapees, inhalers and capsules.
Cannabis startups are likely to have a massive opportunity in this emerging industry. From technology platforms to high-quality buds, these weed startups aim to sustain a stable and prosperous marijuana industry. And as regulatory constraints begin to increase in many nations and countries around the world, the future is still promising.
This article relies on a StartupLynx analysis. You can access the full radar here with the listing of startups involved: