3 Reasons to Invest in Cannabis Tech this Year
As more and more jurisdictions move to legalize cannabis for medical and recreational purposes, many investors are exploring how this dynamic new industry offers smart opportunities for investment.
According to a recent report from Grand View Research, the legal cannabis market could be worth as much as $66.3 billion by 2025, so perhaps it isn’t surprising that people looking for places to put their money to work are becoming interested in the returns that cannabis can deliver.
But it may surprise you to learn that one of the most lucrative areas of cannabis investment is actually in cannabis software and tech, rather than cannabis products themselves.
If you are curious about investing in cannabis but want to make sure you get a good ROI, here are three reasons to consider putting your money into a cannabis tech start up.
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1. Cannabis Tech Offers a Wide Variety of Investment Opportunities
Cannabis tech plays an essential role in helping cannabis producers responsibly develop, grow, harvest, package, and deliver cannabis products to customers and medical cannabis patients.
Because cannabis is a heavily regulated substance, producers need next-generation tracking software in order to keep their businesses in the green, while staying compliant with regulations. One of the upshots of putting your money into cannabis tech is that there are a lot of different avenues for investment.
For example, many producers who work with medical cannabis patients need the right medical marijuana software to connect with clinics and ensure that the product being sold is actually being delivered to the right patient.
2. It’s One of the Fastest-Growing Sectors in the Cannabis Industry
In countries like Canada, which have recently legalized cannabis for recreational use, the actual details of what legalization means are still being worked out. While it is possible for Canadians to order cannabis products from licensed providers online, the legal status of physical dispensaries is much more tenuous.
For this reason, many investors view cannabis tech as a safer place to put their money, which in turn is driving new software innovations and more efficient production. If you want to profit off of the cannabis boom but you also want to err on the side of caution, cannabis tech offers the perfect balance of growth and security.
3. Cannabis Tech Has Huge Growth Potential
The Canadian business and culture magazine Maclean’s recently compiled a list of ten tech firms that could potentially reach a billion-dollar valuation. Featured prominently on this list was Ample Organics, a cannabis tech company whose integrated cannabis software platform has captured a massive share of the Canadian cannabis tech market.
It is rare for Canadian companies to reach this kind of valuation, and the fact that Ample Organics was included on the list speaks to the dynamism and opportunity latent in this market.
Whether or not this cannabis tech firm will eventually be worth a billion dollars, investors who put their money into cannabis tech in 2019 are guaranteed to see steady growth and healthy returns.
Cannabis legalization has already proven to be a once-in-a-lifetime business opportunity for many companies and individuals, but for investors who want to benefit from the growth of the cannabis market while still making relatively safe bets, cannabis tech is the best place to start.