Growing legalization of cannabis sparks new interest in cannabis-related start-ups
Spurred on by the increase in cannabis use during the COVID-19 pandemic, entrepreneurs and industry investors are bracing for even stronger growth in the sector as cannabis legalization spreads and the he US economy is reopening.
Young companies specializing in cannabis technology, especially those that enable the delivery of the weed to homes, have received a big boost during the pandemic as more Americans have used it, which has sparked interest. from investors to companies that provide everything from crop management tools to compliance and e-commerce software, to an industry that still operates in a legal gray area at the federal level.
As more states legalize cannabis
and American venture capital is pouring in
Cannabis entrepreneurs say they need to act quickly and build their brands before full U.S. legalization levels the playing field - a process that many say is set to accelerate this year.
"Why are you going to Weedmaps (for cannabis retailer listings) if you can go to Yelp?" Why do you order through this or that system if you can order through DoorDash or Uber Eats? Asks Steve Allan, Managing Director of The Parent Company, of which Jay-Z is the chief visionary leader and which seeks to consolidate the small players after its listing in January through a specialized acquisition company.
Cannabis share price
After a sharp sell off in 2019, cannabis stock prices have started to rebound.
In total, investors have paid more than $ 2,5 billion to cannabis tech startups in North America since 2018.
This interest comes as shares of publicly traded cannabis companies - many of which are listed in Canada because they are banned from U.S. stock exchanges - have started to rebound after a sharp sell-off in 2019.
"We don't necessarily want things to become (fully) legal today because there is a lot of value in our businesses, and we want more time to build," a declared Lenore Kopko, Managing Partner of Gotham Green.