CannaBiz: aRe wE hiGh yEt?

How can a strictly regulated industry become the fastest growing and among the most lucrative? Hold this bud while I explain..

For those of you who have never indulged in some weed and are curious about the experience? Stop reading now and Watch Bob Ross (R.I.P) for about an hour. Once you’re totally relaxed, you can return to reading this post.

So, founders got curious.

Standard advice to any founder was to never build products in regulated markets…That attitude is about to change…The most exciting billion dollar companies in the last 10 years have been launched in heavily regulated markets.

Steve Blank and Bradley Tusk

I lifted this wisdom from Steve Blank and Bradley Tusk. We see this theory of investing in regulated markets play out in the Legal Industry as well.

[ Fun fact: I found 224 synonyms for Ganja. ]

Now, investors and corporations are interested.

According to CB Insights, a total of $2.2 Billion was invested in marijuana in 2018 alone. Maybe because the market size is everyone over the age of 16 with anxieties. Since we are living in an increasingly uncertain age, there is little doubt that smoking herb will be a hit. Before the recreational use of Cannabinoids was only legal in a few circumstances around the world. Now acceptance is growing and the largest economy on our planet just legalized Kusk. So it is safe to assume that demand will outstrip supply very soon.

[ Fun fact: In Switzerland, you can get a little THC in any supermarket or tobacco store. ]

Why should the Legal Industry care?

We recently processed 10.000 of the fastest growing companies worldwide ranked on LinkedIn employee growth and Indeed job listings. Within this list, we identified the companies impacting the legal industry (1009) and noticed a small number (44) are distributors of Hemp. Here’s the insight: there were no Law Firms or Legal Tech companies within the top 20 fastest growing companies. However, we did encounter two handling the Purple Haze respectively Canopy Growth – #5 and Medmen – #14 .

To provide some context: the first LegalTech companies we found ranked in spot #771, #912, #1305 on the list of 10.000. Rejoice! All three were so-called, “A.I.” infused ventures within the LegalTech space. Nevertheless, if growth is measured by the companies hiring as mad, the Trees are reaching the sky. No wonder there is a thriving cottage industry of services all catering to La Cana. We see News Trackers, Legal and Compliance services, as well as Human Resource providers all focused on one substance. Both Wurk – #59 and Vangst #2121 are riding this high on the staffing front.

This brings me to my first point: a high growth but regulated industry needs skilled labor. Legal professionals are best positioned to help unravel regulation. Lawyers would be the stable underpinning for this blooming business. One reason the cryptocurrency craze was so chaotic wasn’t the lack of laws but the absence of legal sense. If you read up on all the crypto crashes, most likely cause was a security gap in the “smart contracts”. Usually, these ‘loopholes’ were the result of logic an engineer would use but a lawyer would never agree too.

[ Fun fact: Uruguay and Canada are the only countries were farming, distribution and, sale of Sinsemilla is legal. ]

Puff, I digress…where was I?

My second point: the Dutch may be the foremost experts in the authorized sale and distribution of ‘the Dutchie’. The Netherlands were legal pioneers in decriminalizing the possession of Pot back in 1972. While many still think this is a bad move, stats and society have proven otherwise. Every first-time tourist to the Netherlands will confess, Dutch Coffeeshops are one of the safest places to chill. And that is by an intricate legal design of do’s and don’ts. Maybe this expertise can become Holland’s next big export.

Reality is that the legal industry earns the bulk of its income servicing other businesses. Therefore growth for the legal industry needs these businesses to not crash but to safely reach a new high.

Now, don’t Bogart and pass it along..on the left-hand side.

[ Fun fact: I had way too much fun writing this post. ]