By Mike Montgomery
The cannabis industry is growing like, well, a weed. And the fact that recreational marijuana is on the California ballot in November means that we are about to see an extraordinary number of tech entrepreneurs enter this arena. According to cannabis research firm The Arcview Group, if the measure passes, the California cannabis market will grow from $2.7 billion to $6.6 billion by 2020.
Currently, Alaska, Colorado, Oregon and Washington are the only states where recreational marijuana use is legal. It’s a $5.7 billion industry (“the fastest growing industry in America,” according to Cashinbis) that is poised to take off once California hits the market.
There are plenty of hot areas for fledgling cannabis entrepreneurs. Edibles, vapors, extraction processes and growing systems, to name just a few. “If you are looking at product development, there is no standard—no one will tell you how to do it,” says Michael Devlin, co-founder and president of Db3, which makes Zoots edibles. “As the industry grows, they will ask for innovation. The winners will be those who respond to that.”
I checked in with activist Brian Caldwell, owner of Triple-C: The Original Cannabis Club, to see what areas might be ripe for budding tech entrepreneurs interested in the cannabis industry:
Mature consumer-facing software: Right now, Weedmaps and Leafly are the top two sites where cannabis consumers can look up dispensaries, find cannabis strains and read reviews. But neither is perfect and both need to mature a lot in order to be truly user friendly.
Weedmaps suffered from a lot of growing pains and has had a number of software issues. Leafly, while packed with information on specific strains and great technologically, seems to be struggling to gain traction.
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