With California on a precipice of a ballot initiative next year that could legalize marijuana recreationally, scores of cannabis startups are vying to capture what is the nation’s largest market in advance of such a big regulatory change.
Meadow, a Y Combinator-backed startup, was one of the earlier ones with an ordering and delivery service for medicinal users that started about a year ago. While they have had a direct-to-consumer product for awhile, they’re now launching a more enterprise-focused product with Platform, a software suite for medical dispensaries to handle online and mobile ordering, delivery logistics, patient intake, and legal compliance.
Cannabis Startup Meadow Unveils A Platform For Dispensaries To Manage Orders, Patient Intake | TechCrunch
We don’t need to parse out everything in the quote above but there are a few important points to quickly make:
- Legalization is on the ballot again in 2016 in California. This time it’s likely to pass. The time to get ready for marijuana industry players is NOW.
- Marijuana-related businesses (we’re not big fans of the term “pot businesses” although “cannabis startups” is not too bad), are getting funded by VCs. Meadow, which the article is about is only one of several cannabis startups benefiting from venture money being mostly located in California. Others like FoodHigh.Club are getting on TechCrunch Disrupt Hackathons with the same goal in mind.
- Enterprise-focused SaaS providers and other tech-oriented vendors (again, like Meadow) are looking at the industry and seeing huge potential (as are the VCs backing them, obviously).
- Re-read point #3 above. And point #2 above. And our post about a Mashable article about LEAFS by SNOOP. Legalization is coming, the market will be huge, and it’s time for the industry players to start thinking and acting accordingly.
This last point is amplified by Meadow’s CEO in a very interesting manner. To quote the TechCrunch article:
“All of these pieces are going to be connected in what becomes a seed-to-sale platform for marijuana that is home-grown in California and delivered by dispensaries for patients in California,” said CEO David Hua.
Hua compared Meadow’s model to being a “Grubhub for cannabis.” Instead of owning and packaging the entire product from end-to-end, the company partners with dispensaries.
“With cannabis, you can be the king or a kingmaker,” said Hua, who added he prefers to be the latter. “There’s no way that any of the companies we partner with have the skills to build this technology. It’s really expensive.”
This is the whole point behind The 420 Agency: we can offer our help, and expertise and experience to help these businesses (dispensaries, manufacturers, growers, etc.) at affordable prices to ensure that they can be kings.
By: JP Clement