Monday, October 17, 2016
Highlighting why innovation can (and will?) be the face of the marijuana industry
This new C/Net article, headlined "Innovation is the budding theme at marijuana summit: Everything from high-tech advancements in edible weed to big-data analysis can be seen at this year's New West Summit in San Francisco," highlights why so many interesting folks find the futue of the marijuana industry so interesting. Here are excerpts:
The New West Summit at the Hyatt hotel in downtown San Francisco looked similar to other business conferences held there throughout the year. Men and women in business suits hurried around, people huddled in corners talking shop, and unembellished booths showed off varied graphs and charts.
But every once in a while, conference goers got hit with a strong waft of marijuana. That's because this summit was all about weed. At their booths, companies displayed glass urns filled with buds, cannabis-laced chocolate bars and different kinds of vape pens and bongs. Yet among the firms touting this typical pot paraphernalia, there were other kinds of businesses dealing in marijuana: tech startups.
"This plant has been illegal and underground since the invention of technology," said Steve DeAngelo, founder and CEO of Harborside, one of the world's largest medical cannabis dispensaries. "This conference represents the intersection of Bay Area startup culture and cannabis."...
By 2020, New Frontier forecasts, the industry will be worth $20.5 billion (and some estimates put that figure a lot higher). That type of escalation makes the weed business one of the fasting-growing industries in the US. It's no wonder startups are getting into the game.
A meander around the New West Summit gives a sense of where the business side of the industry is heading. There's Grownetics, for instance, which uses a machine-learning algorithm to help farmers grow bigger buds more sustainably. There's Fleurish Farms, which has invented a contraption that it says captures 99.7 percent of the sun spectrum to let people grow pot plants indoors at a higher efficiency than they could in a greenhouse. "It captures the sunlight from all angles," said Fleurish Farms CEO Jonathan Cachat. "This reduces the environmental imprint of indoor cannabis production."
Even edible marijuana is seeing innovation. Besides gummies, lozenges and chocolates, some companies showed off marijuana-infused dissolvable breath strips, while others had topical sprays with exact dosing per pump. "We're coming to a point where we're starting to see edibles that are lower dosed," said Kristi Knoblich, co-founder of Kiva Confections. "It's that person that's looking for a glass of wine in the evening, that person that isn't looking to get blasted."
As the weed industry becomes more professionalized, it's caught the eye of more investors. In 2015, investors dropped $360 million into marijuana-focused startups, and so far this year they've invested $137 million, according to PitchBook, a research firm specializing in venture capital. That's a lot compared with just four years ago; in 2012 investors put only $7 million toward funding weed companies.
UPDATE: This new Business Insider article also speaks to emerging realities in a growing legal marijuana industry, and it includes these interesting points:
The marijuana industry is growing up in front of our eyes. As drug transactions move from back alleys and clubs to legal dispensaries, the culture around pot changes. In an effort to be taken more seriously, industry insiders find more sophisticated language to describe their trade. Slang no longer has a place in the industry vernacular. Entrepreneurs tell me they much prefer the scientific name for the plant, cannabis.
In the exhibit hall, purveyors showed their wares: high-tech vaporizers from companies like Firefly and Pax Labs, a marijuana-infused health products line from Fleurish Farms, and reports from business intelligence platform Headset. I spotted few companies with names that reveal the industry they operate in, and plenty advertising health and wellbeing.
A recent investigation by the Marijuana Business Daily underlines this trend. In an analysis of over 3,000 state-licensed marijuana companies, the publication found that companies use wellness-oriented words, such as "organic" and "herbal," in their names far more often than slang. The Marijuana Business Daily did not include businesses in California and Michigan, which do not issue licenses at the state level. "Farm," "green," "leaf," "bud," "garden," and "organic" are among the most popular words used in company names.
As Marijuana Business Daily writer Eli McVey points out, this hasn't always been the case. In the mid-2000s, before Colorado and Washington became the first states to legalize recreational weed in 2012, words like "ganja" and "dank" popped up more frequently. But as the national conversation around marijuana turned to issues around public health, rather than criminalization, the industry adopted a new vernacular around wellness and healing people.