This Week in Startups How decriminalization led to an explosion in cannabis startups (Feat. Ford Smith, Andrew Duffy, and Socrates Rosenfeld) | E2241
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Guest links:
Andrew Duffy, Founder and CEO, http://sparkplug.app — Retail incentives and brand partnerships platform
Ford Smith, Founder of http://Ultranative.com — Investing in transformative startups
Socrates Rosenfeld, Founder and CEO of http://iheartjane.com — One stop shop for cannabis products
Today’s show:
On TWiST’s first Cannabis Roundtable, Jason is joined by three top Cannabis founders and investors: Ford Smith of Ultranative, Andrew Duffy of Sparkplug, and Socrates Rosenfeld of Jane.
How will the regulatory environment and the move to Schedule III change the industry? Are those regulations shaping consumption? How are investors thinking about cannabis startups given the difficulty with exits? Most importantly, what’s the deal with the increasing potency of cannabis?
Each guest has their own perspective, Andrew sees it as a natural reaction from CPG brands to power users, Ford points to “flyover” operators unconcerned with long-term health of the industry, while Socrates refers to moonshine drinking during the prohibition to say that regulations create these problems.
Speaking of moonshine, alcohol consumption is dropping dramatically among Gen-Z, with many pointing to cannabis consumption as a substitute. Some perceive cannabis as healthier and lacking caloric nature of alcohol, which could explain why there are now more daily smokers than daily drinkers!
Timestamps:
(0:00) Guest Introductions for the Cannabis Roundtable!
(2:50) Why Jason invested in Sparkplug
(6:44) How Ford Smith got into Cannabis investing — is it Cannabis a good investment?
(11:40) Gusto - Check out the online payroll and benefits experts with software built specifically for small business and startups. Try Gusto today and get three months FREE at http://Gusto.com/twist.
(12:46) Socrates breaks down building a major cannabis marketplace
(18:13) Canadian legalization and tailwinds for cannabis.
(20:25) How Cannabis startups are pivoting to deal with high competition and regulatory pressure
(21:47) Zite - Zite is the fastest way to build business software with AI. Go to http://zite.com/twist to get started.
(27:07) Who benefits from legalization of cannabis? Healthcare? Retail? Banking?
(28:03) How the alcohol industry is getting crushed by cannabis usage
(31:27) Circle.so - The easiest way to build a home for your community, events, and courses — all under your own brand. TWiST listeners get $1,000 off Circle’s Professional Plan by going to http://circle.so/twist.
(32:47) Is new cannabis too potent? Is high potency cannabis a result of illegal rules.
(42:05) Why heavy consumers are driving CPG startups to high doses
(44:14) Cannabis psychosis and the problem with brands selling potency items.
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