From lowering power usage to establishing point-of-sale systems to connecting develop facilities with dispensaries, application is shaping the speedily evolving cannabis sector — and generating headlines just about every day.
On Oct. 15, Forbes declared, “Investors are pouring income into marijuana application,” and highlighted Denver-primarily based Flowhub, which just raised $23 million to expand sales of compliance and point-of-sale application to marijuana dispensaries nationwide.
Of course there are currently point-of-sale systems out there — any person who’s worked in the restaurant sector can rattle off a list of POS systems with quirky names like Toast, CAKE, Aloha and, my individual favourite, Squirrel — but federal prohibition tends to make it hard for established businesses like these to serve the cannabis sector, which nevertheless is not permitted access to federal banking.
Enter cannabis-centric tech businesses like Flowhub, which, according to Forbes, “is also adapting its application to assist dispensaries handle their inventory (which includes the shelf-life of edible pot items) and staffing requires.”
With pot sales soaring just more than $10 billion in 2018 and projected to quadruple in the subsequent 4 years, Flowhub is not the only firm cashing in on cannabis-precise application.
Pitchbook, a venture capital database, located 39 venture capital offers involving cannabis application in 2018 worth extra than $178 million.
“Legalization has opened doors for a lot of companies, specifically startups dabbling in the information and technologies elements of legal marijuana,” Investopedia reported this summer season in an short article profiling a handful of top rated marijuana private equity and venture capital funds. “While it is nevertheless tricky to invest straight in legal pot via public equities, venture capital firms and private equity funds have raised hundreds of millions of investment dollars.” (One particular of the VC funds Investopedia highlights is Phyto Partners, the lead investor in Flowhub.)
CanPay is yet another Colorado-primarily based IT firm (it designed a debit payment app) with practically 300 shoppers across 17 states.
Business enterprise management is not the only region of the cannabis sector that application businesses are searching to strengthen. On Oct. 13, The Denver Post profiled Boulder-primarily based Surna, which styles, engineers and manufactures app-primarily based environmental manage and air sanitation systems for indoor develop facilities.
“The extra precise manage suggests significantly less power consumption and that impacts the bottom line,” Surna CEO Tony McDonald told the Post.
Software program is even assisting cannabis businesses discover marketing space. Adistry, a Longmont-primarily based firm, created application “that aids connect cannabis businesses in search of to obtain marketing space with media outlets and other companies prepared to sell marketing space to marijuana operators,” according to Marijuana Business enterprise Magazine.
“Adistry, which also serves other regulated industries such as alcohol and gambling, is not just about introductions,” MJ Biz Mag wrote. “The application automates a lot of the ad-shopping for and -promoting processes for customers, which is especially valuable for modest companies that may well not have the time or knowledge to handle ad buys.”
But some marijuana tech businesses are possessing a challenging time having their sea legs, as the Massachusetts-primarily based Worcester Business enterprise Journal reported on Oct. 14.
“[W]ith the slow rollout of recreational marijuana in Massachusetts … would-be cannabis tech entrepreneurs are facing obstacles on two fronts: a restricted quantity of licensed cannabis businesses to do enterprise with, and competitors from established tech businesses who currently have reduce their teeth in early-adopting marijuana markets like Colorado and California.”
West Coast (and Colorado) cannabis IT and advertising service businesses have had extra time to create their items and discover customers, which means tech businesses in newly emerging markets, like Massachusetts, are struggling to compete with effectively-established, multi-state operators.
Here’s hoping the cannabis sector can build a fertile ground for regional companies to flourish.