On October 28th, CanopyBoulder CEO Patrick Rea addressed an audience in NYC at the High NY event, Pot, Parenting & Private Equity, which was held at Impact Hub. High NY is the #1 Meetup for Cannabis entrepreneurs, activists, and enthusiasts in NY. Rea gave an informative presentation about the background of the cannabis industry and all of its nuances and engaged the audience, with the participants asking lots of questions. For would-be investors and entrepreneurs looking to learn about the cannabis industry, this is a highly informative discussion.
- CanopyBoulder focuses upon only ancillary businesses (data, tech, software, media, hardware, etc.)
- Legal market was $2.7 billion in 2014, expected to grow 20% this year and could approach $37 billion over time
- States all try to be “tougher than Colorado”
- Big changes ahead in California, which has been poorly regulated, and CanopyBoulder is focusing its companies on that market’s opportunities
- Banking is a big problem for the industry, even for ancillary companies, but fixing it will reward investors
- Cannabis innovation is taking off, with consumption methods moving towards edibles and extracts and away from smoking
- Legalization can lead to a temporary price spike, but over the longer-term it pressures prices as supply increases. Prices are falling dramatically in Colorado.
- Human capital is the most important kind of capital that the industry needs
- The industry is friendly to women. The Spring Class at CanopyBoulder had six women co-founders for the 10 companies, but none for the Fall Class. Women Grow is a great resource.
- Private investment has been taking off, but institutional money has been slow to enter the market.
- It’s important to do due diligence on potential investors
- The United States lacks good cannabis research due to the DEA’s oversight
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