Why I believe the best investment today is in cannabis tech.

where to invest in cannabis tech companies

In case you haven’t heard, the cannabis industry is blowing up. Legalized weed created just under $7 billion in revenue for 2016. So that’s before Nevada pushed their recreational laws to an early passage in summer of 2017. Las Vegas is set to be the “weed capital of the world” with its 50+ million estimated yearly tourists. That’s 6x the population of New York City. Even by conservative estimates, the US cannabis industry is going to surpass $20 billion by 2020 at the latest.

Great, so we should invest in a growery or dispensary, right?! Wrong. You don’t want to be involved in the product itself, you want to be invested in companies serving the industry. Look at Uber. They have disrupted the taxi industry and they do not own any cars. Airbnb has disrupted the hotel industry and they do not own a single square foot of rentable property. They are tech companies serving an industry.

So what does that mean for cannabis? For cannabis, I believe it’s nothing different, invest in cannabis tech with a service based model. These companies do exist, the problem is they are private.

The race to be the “uber of weed delivery” is just getting started. Right now I’m watching Eaze, GreenRush, and Hytiva. Hytiva is the newest to market, but has a strategic advantage of being based in Las Vegas and could build exclusive relationships with local dispensaries. As I said and most believe – for recreational cannabis, all that really matters is Las Vegas. While weed deliveries companies can not deliver recreational purchases, only medical, this is yet another restriction soon to be axed as the state and municipal boards see the vast revenue (taxation) potential.

While there is currently great friction involved in investing in almost any cannabis tech company due to needing to be a private investor, it is something you should be watching for openings in. We are witnessing the end of prohibition #2 and the opportunities for once in a lifetime wealth creation are already here.

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