CannaKorp CEO James Winokur presented his company to CNBC Power Pitch and earned an “all in” from the three panelists, which included Nir Liberboim of Uprise Ventures, Kelly Keenan Trumpbour of See Jane Invest and Patrick Rea of Canopy Boulder. In the one-minute pitch, Winokur described the company’s initial product, CannaCloud, which vaporizers cannabis that is packaged in single-serve pods and will retail for about $150. The pod royalties are projected to exceed $400mm by 2020. The company’s management team includes three veterans of Keurig.
Liberboim asked Winokur about the company’s focus, which goes beyond medical to the broader wellness market. Trumpbour wanted to know about availability, which is projected to be in states that legally permit cannabis and beginning in 2017. Rea inquired about the management team, which Winokur believes is capable of scaling based on prior experience with a similar business model. Winokur described the margins as low on the device but high on the pods. Initial distribution will be in dispensaries, but the company expects to be able to eventually use direct fulfillment for the CannaCloud to some degree.
Liberboim liked the strength of the management team, the pricing and the disruptive nature of the product. Trumpbour believes the market is big and that the product will appeal to both medical and recreational consumers. Rea conveyed that his team at Canopy Boulder has observed the strong management team’s leadership and the product’s appeal to all aspects of the supply chain.
Watch “Start-up creates ‘the Keurig of marijuana'”: http://video.cnbc.com/gallery/?video=3000562706