Jacob Redmond
Well-Known Member
When he graduated from university, Dane Pieri, like many of his generation's brightest, headed to Silicon Valley to join the technology boom.
But a few years later, the 26-year-old is no longer writing computer code. Instead, he has just founded his own cannabis company. Pieri, like many of his peers, has discovered there is money to be made - legally - in what is expected to be one of America's biggest growth industries over the next decade. His startup firm, called Marvina, is described as a "wine club for cannabis" and is aimed at a wealthy clientele. It serves customers in Silicon Valley who have medical permission to use the drug. Medical, but not recreational, use of cannabis is currently legal in California.
Each month, club members who may know little about cannabis receive a sleek, black box containing strains specially selected for them by Marvina's experts. They join the club on a serious-looking website which eschews big green leaf logos and drug puns.
"I had never really thought of cannabis as a viable business, then I just started getting really fascinated by what's going on," Pieri said. "In 2013 it felt like nobody in Silicon Valley was really paying attention. Then in 2014 a lot of that changed.
"It's not very often you have a product that already has a huge existing market but the supply side has been turned on its head. It creates a lot of opportunities. Pretty much every business in the cannabis industry now is a startup. There are no huge entrenched players and nobody knows what this is going to look like in 10 years." As the battle for market share begins in earnest, Marvina has competition from other Silicon Valley cannabis delivery startups such as Eaze, a mobile app that allows customers to get a delivery to their door in minutes. Eaze recently raised $1.5 million from 40 Silicon Valley investors and is being described as "Uber for pot" after the taxi app service.
Earlier this month, the doors were opened to further investment in cannabis companies when Founders Fund, a venture capital firm, plowed several million dollars into three startups, including one producing a Bob Marley-branded variety of the drug.
Founders Fund was started by Peter Thiel, the Silicon Valley billionaire who gave Mark Zuckerberg his first $500,000 in funding for Facebook. Venture capitalists stewarding money from traditional institutions such as pension funds and university endowments may now be less reticent about investing.
In Denver, a former tax lawyer is running a cannabis dispensary. In Seattle, a retired mortgage adviser is growing and selling the drug wholesale.
Josh Gordon, a 27-yearold cannabis entrepreneur, founded his startup while studying for his MBA. His company, Bureau, makes packaging for pot, including childproof containers.
"Whether we're talking about a grandmother dealing with side effects of chemotherapy or a modern professional who consumes recreationally, they deserve to be treated like the highvalue consumer they are." According to the ArcView Group, a San Franciscobased network of investors specializing in cannabis startups, the legal U.S. cannabis industry was worth $2.6 billion in 2014.
It predicts that could rise to $10.2 billion by 2018, with the cannabis industry growing faster than the market for smart phones. ArcView is contacted by dozens of startups weekly, many hoping to emulate the success of technology ventures such as Facebook. The huge variety of businesses being started includes everything from cannabis vending machines to drug-themed travel tours.
The first two states to legalize the drug for recreational use, Colorado and Washington, opened their first cannabis shops last year. In November, Oregon and Alaska also voted to legalize recreational use. Votes in six more states, including California, may take place in 2016. The drug is currently legal for medical use in nearly half of American states.
News Moderator: Jacob Redmond 420 MAGAZINE ®
Full Article: Pot businesses growing
Author: Nick Allen
Contact: citydesk@leaderpost.com
Photo Credit: Matthew Staver
Website: Leader Post | Latest Breaking News | Business | Sports | Canada Daily News
But a few years later, the 26-year-old is no longer writing computer code. Instead, he has just founded his own cannabis company. Pieri, like many of his peers, has discovered there is money to be made - legally - in what is expected to be one of America's biggest growth industries over the next decade. His startup firm, called Marvina, is described as a "wine club for cannabis" and is aimed at a wealthy clientele. It serves customers in Silicon Valley who have medical permission to use the drug. Medical, but not recreational, use of cannabis is currently legal in California.
Each month, club members who may know little about cannabis receive a sleek, black box containing strains specially selected for them by Marvina's experts. They join the club on a serious-looking website which eschews big green leaf logos and drug puns.
"I had never really thought of cannabis as a viable business, then I just started getting really fascinated by what's going on," Pieri said. "In 2013 it felt like nobody in Silicon Valley was really paying attention. Then in 2014 a lot of that changed.
"It's not very often you have a product that already has a huge existing market but the supply side has been turned on its head. It creates a lot of opportunities. Pretty much every business in the cannabis industry now is a startup. There are no huge entrenched players and nobody knows what this is going to look like in 10 years." As the battle for market share begins in earnest, Marvina has competition from other Silicon Valley cannabis delivery startups such as Eaze, a mobile app that allows customers to get a delivery to their door in minutes. Eaze recently raised $1.5 million from 40 Silicon Valley investors and is being described as "Uber for pot" after the taxi app service.
Earlier this month, the doors were opened to further investment in cannabis companies when Founders Fund, a venture capital firm, plowed several million dollars into three startups, including one producing a Bob Marley-branded variety of the drug.
Founders Fund was started by Peter Thiel, the Silicon Valley billionaire who gave Mark Zuckerberg his first $500,000 in funding for Facebook. Venture capitalists stewarding money from traditional institutions such as pension funds and university endowments may now be less reticent about investing.
In Denver, a former tax lawyer is running a cannabis dispensary. In Seattle, a retired mortgage adviser is growing and selling the drug wholesale.
Josh Gordon, a 27-yearold cannabis entrepreneur, founded his startup while studying for his MBA. His company, Bureau, makes packaging for pot, including childproof containers.
"Whether we're talking about a grandmother dealing with side effects of chemotherapy or a modern professional who consumes recreationally, they deserve to be treated like the highvalue consumer they are." According to the ArcView Group, a San Franciscobased network of investors specializing in cannabis startups, the legal U.S. cannabis industry was worth $2.6 billion in 2014.
It predicts that could rise to $10.2 billion by 2018, with the cannabis industry growing faster than the market for smart phones. ArcView is contacted by dozens of startups weekly, many hoping to emulate the success of technology ventures such as Facebook. The huge variety of businesses being started includes everything from cannabis vending machines to drug-themed travel tours.
The first two states to legalize the drug for recreational use, Colorado and Washington, opened their first cannabis shops last year. In November, Oregon and Alaska also voted to legalize recreational use. Votes in six more states, including California, may take place in 2016. The drug is currently legal for medical use in nearly half of American states.
News Moderator: Jacob Redmond 420 MAGAZINE ®
Full Article: Pot businesses growing
Author: Nick Allen
Contact: citydesk@leaderpost.com
Photo Credit: Matthew Staver
Website: Leader Post | Latest Breaking News | Business | Sports | Canada Daily News
