Anonymous asked Patrick Rea, 1/7/2019 1:36:54 AM
  • Investment, VC, PE Financing

What kind of cannabis start-ups will be hot in 2019?

Locked comment
1 Answer, 0 Replies
1/7/2019 4:44:54 PM,
Patrick Rea replied:

The biggest trend we're seeing is the rise of hemp and CBD products. The recently passed Farm Bill legalizes hemp as a national crop which is a great step forward for hemp and CBD products, though the regulation of these products for consumption and use is still up in the air as each state will have to decide (eg. some states will ban CBD for use in food). (Listen to this podcast episode about this: https://bit.ly/2SFvTOp)

Next, we're seeing exciting movement in the ancillary space. Due to the banking and tax issues related to federal prohibiton and falling wholesale prices, plant-touching businesses like retail, cultivation and manufacture are becoming less profitable. and less attractive. Instead, tech solutions in the space are taking off. Some of the trends we're seeing there are around vaporizer technologies (making it easier for users to measure their doses for consistent experiences) and data applications (providing clarity into the industry's performance). 

Finally, there are issues related to prohibiton that offer opportunities for start-ups and we're seeing those turn into businesses. For example, the limitations around advertising create opportunities for startups that are providing creative advertising opportunities for brands to communicate their value to the consumer.

Locked comment | Permalink