When James Howler created his marijuana-infused taffy in 2009, the Colorado entrepreneur had trouble finding an accountant willing to keep the books of a company making legally fuzzy medical marijuana candy.
Now, five years later, venture capitalists from New York City want to shower him with money for a stake in his Cheeba Chews and a foothold in a $2.6 billion marijuana industry now operating in nearly half the country.
With medical marijuana legal in 23 states and Washington, D.C., and recreational marijuana legal in Colorado and Washington state, the market for weed is rife with potential, and the people in pinstripes have taken note. As the marijuana companies grow more sophisticated — and profitable — they are attracting the attention of investors and corporations.
Tapping into the green revolution, however, brings unique challenges for entrepreneurs and corporate honchos alike. States may have bucked federal law, which considers marijuana illegal for any purpose, but they have imposed their own complicated, lengthy lists of regulations meant to keep cannabis tightly under control and, in some cases, keep the corporate behemoths out.
But with so much money at stake, industry experts say, it’s only a matter of time before corporate giants, already eyeing the market, grab their share, too.
“If leaders of these companies are not looking at the cannabis space, then they are not doing their jobs,” says Chris Walsh, editor of Marijuana Business Daily, a trade publication based in Denver. “Billions of dollars are here, and no seasoned business executive is going to overlook a billion-dollar industry that they might be positioned to tap.”
If the crowd of 200 executives who jammed the marijuana panel at the Wine & Spirits …read more