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how to start a medical marijuana growing business

How to start a medical marijuana growing business

There are different cannabis licenses depending on the type of cannabis business you are trying to open, including different options for:

3. How do I get a cannabis license?

One major cautionary note to aspiring cannabis licensees: remember that you are selling a commodity in a highly-regulated and highly-taxed industry. Ensure you understand all of those considerations before funneling tens of thousands of dollars into preparing and submitting an application for licensure.

6. What do I need to get my cannabis business started?

It’s important to note that not all roles require the same hiring urgency. For example, you may need to find an expert to support operations immediately, while you may not need to hire a social media professional for another six months. Asking yourself these kinds of questions will help you hire the right talent at the right time.

How to start a medical marijuana growing business

Narrator: Those in favor of federal legalization believe it could close the capital gap and ease regulations.

Narrator: And the tags stay with the plants through harvest.

Adriana: I know, it’s good for me.

Narrator: And it all starts with the business license, the first barrier to the marijuana industry. Will and Adriana wanted to start a farm in California. But there, a license to grow can cost almost $80,000, with an $8,000 application fee. That’s a lot more than a liquor license in California, which can cost just over $15,000 max.

Jeannette: The regulations are really part of what layers on those costs.

Narrator: Licenses to start a farm can cost up to $80,000 alone.

Narrator: In July 2020, Sen. Chuck Schumer proposed legislation that would legalize marijuana federally. Jeremy says at the core of that legislation is equity.

Jeannette: Some states do things like, in addition to the fee, require you to have liquid capital of $250,000, for example. And who’s got $250,000 in liquid capital? Few, few people. That begins to immediately lock out whole communities.

Jeremy: They can’t take credit cards, because it’s federally illegal. They’re doing business mostly all in cash.

Weedmaps was founded in 2008 and is based in Irvine, California. It expanded and now has offices in New York, Barcelona, Denver, Tucson, and Toronto.

Leafly allows consumers to rate and review cannabis strains, kind of like a highly specialized version of Yelp. Created by a trio of former Kelley Blue Book employees, the company started out as a simple side project in 2010. Within a year, it became a full-time enterprise and attracted the interest of Privateer Holdings. The company raised almost $41 million in three rounds of financing.

Venture funding for marijuana startups seems to be pouring in from all directions. Commonly referred to as pot-preneurs, marijuana startup leaders are betting heavily on the potential for increased legalization.

Weedmaps

The industry is made up of a number of different companies, including:

With so much growing interest in the growing marijuana cottage industry, it isn’t surprising that so many venture capitalists have turned their attention and funding to a rapidly evolving cannabis tech industry. The following are just a few cannabis startups that have raised more than $10 million:

Leafly

Among the primary factors now attracting investors to the still-fledgling cannabis industry is that there is still ample room for innovation. In this article, we examine some of the most promising pot-related startups around.

Calvin Broadus, a.k.a. Snoop Dogg, is another notable investor in the industry. The rapper makes no secret of his affinity for marijuana and is the director of Casa Verde Capital, a venture capital fund that invests in cannabis startups. The company’s portfolio includes names like Dutchie, Green Tank, and Cannalysis.