I apologize for taking so long to get this part two blog up. For those of you who were not aware, last week I had the pleasure of traveling to Los Angeles for the Cannabis World Congress and Business Exposition. While in LA, I was also able to meet with multiple dispensaries in the area as well.
The scenery alone gave me hope to believe that we truly are on the verge of a surge for marijuana related businesses in the state. One thing that stood out as I was stuck in 2 hours of traffic on the 405 was the marketing. I saw multiple billboards posted for dispensaries, some for vape products and I even saw that a cannabis company threw down some money to “Adopt A Highway”.
According to Troy Dayton, the CEO of Arcview group- a cannabis research firm, “California is the sixth largest economy in the world, Colorado and Washington are pilot studies by comparison.
With that being said, Colorado alone mustered up over a billion dollars in cannabis related sales in 2016. If Dayton is correct about the potential in California, and those numbers are put into perspective, once cannabis is federally legal, the industry has serious potential to surpass the prior fastest growing industry in the U.S. – the organic food market, which had roughly 43 billion dollars in sales across the United States in 2015.
I understand the risk involved with the industry due to legal stances varying from state to state and on a federal level. However, there comes a time when a smart investor or entrepreneur needs to sit down and really analyze risk vs. reward. Sure, there is some risk, but that risk is becoming smaller and smaller while the potential reward is growing exponentially.
So why haven’t investors started to throw money at the industry? Well, they actually have. Benchmark Capital, the same company that helped launched Twitter, Uber, Snapchat and Instagram, recently made an eight million dollar investment in a company called hound labs. The co-founder of Paypal contributed roughly $300,000 for the ballot campaign in CA that helped pave the way for the states legalization. Netflix has even began selling their own weed strands!
As perceptions and laws continue to change, the cannabis industry continues to emerge- further aiding my opinion that if you want to get into this industry, The Time is Now!