A new industry is emerging in the United States, and it may surprise a lot of people, especially people from other countries. This new and promising industry is cannabis, the medical use of which is now legal in some states and countries. Some of the medical benefits of cannabis include post-surgical recovery, which significantly reduces the stigma of using this substance.
The emerging cannabis startups industry takes roots from the early days of legalization of medical marijuana (MMJ), which brings us back to California, the first state nationwide to do so in 1998. Several states followed suit with cannabis legalization in the years after, eventually resulting in 33 states legalizing MMJ, as of today.
Now, steps towards the legalization of recreational marijuana are happening earlier than expected, and many people are starting to invest in crowdfunding for cannabis as well as in new and growing cannabis startups. Investors recognize that there is a massive potential in the market, so they take the opportunity.
However, the cannabis industry is not all smooth-sailing. There are still a number of industries as well as big companies that are strongly positioned against the legalization and use of the MMJ, disputing the morality of cannabis use. Despite apparent setbacks, experts are still saying that the marijuana industry will be profitable in the future, and crowdfunding for cannabis is increasingly becoming popular nowadays.
Cannabis Startups and Crowdfunding For Cannabis
As experts say, there is money waiting in this industry that investors and entrepreneurs can reap in the long run. The marijuana boom is comparable to the California Gold Rush that occurred in 1849, when people who invested and joined the gold mining business reaped the rewards later on.
Current estimates on the marijuana industry suggest that its profits may jump from the $9.2 billion value figure recorded in 2017, to more than $50 billion by 2027. Financial experts consider this as an enormous growth for a new industry. Furthermore, thanks to this growth projection, many people are already benefiting from the cannabis industry through the jobs it creates. However, the future growth of the industry still depends on the state and its laws.
Nine Ways You Can Profit from the Cannabis Industry
Cannabis startups hold huge potentials as well as compelling financial rewards for the foreseeable future. Joining the industry is swiftly becoming a dream for many Americans. But how can you be a part of this growing industry? How can you profit from crowdfunding for cannabis? If you are interested to expand your perspectives, here are some roles that you can play in the cannabis supply chain.
- Growers. These people make up the heart of the marijuana industry. Small-time investors can start growing their seeds and plants in their backyards, provided that this act is legally allowed in their state. However, larger investors can do more by having marijuana farms, employing master growers, and strengthening infrastructure for growing cannabis and going big.
- Dispensaries. A dispensary can either be a physical store or an online shop that sells cannabis goodies. As it turned out, online shops to buy weed went on to be much prolific in some states such as California. Both a traditional dispensary or an online shop is a cannabis products retailer where people can sell marijuana. However, these outlets are controversial within states that do not fully support marijuana legalization, and they may be hot targets of federal law units.
- Delivery Services. Every business needs a service to deliver its goods to its customers. One famous example is Eaze, based in the Silicon Valley, and functioning both as a shopping and delivery platform, catering safe and legal cannabis products to consumers. In the last couple of years, there is also a spike in apps development targeting cannabis products delivery.
- Contractors. For every large-scale operation, certain specialty services are required to run things properly. Those specialty services may come from irrigation experts (for the farm), electricians (for maintaining power on the farm), or construction crews (for building the facilities), to name just three.
- Trimmers and Budtenders. These jobs are essential in running marijuana farms. Their duties are to trim plants to avoid overgrowing and preparing plants and parts before selling to customers. Budtenders usually work in dispensaries and may possess substantial knowledge on the different strains of marijuana that they are selling.
- Device Makers. These are manufacturing businesses that create essential devices and paraphernalia used for consuming marijuana. The list of devices include grinders for weed buds or smoking tools such as glass bongs and pipes.
- Online Entrepreneurs. This is an essential part of running a marijuana business. Most businesses these days sell their items via online web platforms, but someone has to set up the business model of how that is going to work out. Entrepreneurs with experience in the digital sphere can certainly help out here. Cannabis entrepreneurs can function just like any other type of online enterprise, communicating with their customers via blogging, partnering with review sites, and networking with other marijuana-orientated businesses.
- Venture Capitalists. As a nascent industry, the cannabis industry is attracting more and more venture capitalists, too. Partnering with a venture capitalist, an investor who provides capital to businesses, can significantly help small to medium cannabis entrepreneurs who are just starting out in the marijuana industry.
Cannabis Stocks to Follow
If you want to invest in the marijuana industry but do not want to fully commit your time, money, and resources into it, engaging in cannabis stocks may sound like a good idea. An engagement in cannabis stocks requires observation of the market for a while, and identifying potential risks since like every other market the marijuana one may have its ups and downs, too. As you learn more about cannabis stocks, it’s good to understand how cannabis companies are positioned out there, which marijuana stocks have the best value or which ones are fastest growing. Some of them are displayed on the list below:
- Canopy Growth Corp. (CGC) – Recreational & medical marijuana (production & marketing)
- Aurora Cannabis Inc. – Recreational & medical marijuana (production & marketing)
- Cronos Group – Medical marijuana only (production & marketing)
- Terra Tech Corp. – Some marijuana production
- General Cannabis Corp. – Ancillary services provider in the marijuana industry
- Innovative Industrial Properties Inc. (IIPR) – Investment trust for medical marijuana
- mCig Inc. (MCIG) – Holding company for marijuana-related activities
- GrowGeneration Corp. (GRWG) – Hydroponics and organic marijuana growing
- Solis Tek (SLTK) – Marijuana-related industry lighting needs company
- Kush Bottles (KSHB) – Marijuana-related industry packaging solutions & supplies company
- Scotts Miracle-Gro Company (SMG) – Marijuana-related industry supplies provider
Cannabis startups have a lot of potential that customers and investors can reap soon, especially once cannabis legalization is applied to all states in the United States. Crowdfunding for cannabis and potentially high-paying payouts can be good things for people looking for new business ventures that they can get into, or invest in through the stock exchange market. However, before starting your cannabis venture, make sure that it is allowed and legal in your state to avoid getting into federal trouble.
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