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Key Facts

  • 25 states have approved medical marijuana use

  • 4 states have approved recreational marijuana use

  • The industry is projecting legal cannabis sales to break $7Bn in 2016.

  • The entire cannabis market, including ancillary products and services, is projected to have an economic impact of up to $44Bn by 2020.

  • According to Gallup, 58% of Americans now support legalization of cannabis for adult use

Frequently Asked Questions

What are legal cannabis ancillary companies?

Legal cannabis companies provide ancillary business solutions, services, and products for the cannabis industry and do not engage directly in the cultivation or sale of the plant and its derivatives. Legal cannabis companies are not subject to the same accounting, banking or legal risks associated with cannabis companies that “touch the plant”. Please visit our HOME page for examples of cannabis ancillary solutions.

What is an accelerator?
  • Startup accelerators support early-stage, growth-driven companies through education, mentorship, and financing in a fixed-period, cohort-based setting.
  • We select innovative, tech-based companies with strong founder teams, provide them with seed capital, and mentor them in a 13-week program aimed to develop their products and solutions, tune their business strategy, and expand their network and partnerships. We will graduate companies with unique solutions that are ready to scale immediately in this rapidly developing industry.
  • We will accept no more than 10 companies into our accelerator program every 6 months for 2 years, developing up to 40 companies in our portfolio.
Why choose to participate or invest in an accelerator?

Winston-Smith and Hannigan (2015) compared graduates of top accelerators with a set of similar startups that instead raised angel funding from leading angel investment groups. They found that the accelerator graduates were more likely to receive their next round of financing significantly sooner and were more likely to be acquired, than were comparable companies funded instead by top angel investor groups.

Why should I be interested in the cannabis market?
  • With a projected 31% compound annual growth rate, legal cannabis is one of the fastest growing industries. With a total market projection for legal cannabis sales in 2020 of $21.8Bn, it will outpace the entire projected organic foods industry. – ArcView State of Legal Marijuana Markets 4th Edition
  • The entire cannabis market, including ancillary products and services, is projected to have an economic impact of up to $44Bn by 2020. – Marijuana Business Daily 2015 Annual Report on the U.S. Cannabis Industry
  • In 2014, legal cannabis sales were $4.6Bn. In 2015, that number grew to $5.7Bn. The industry is projecting sales in 2016 to break $7Bn. – ArcView State of Legal Marijuana Markets 4th Edition
  • According to Gallop, 58% of Americans now support legalization of cannabis for adult use, up from 35% in 2005; a separate poll by Harris found 81% of Americans support legalization for medical use. – ArcView State of Legal Marijuana Markets 4th Edition
Why should I be interested in Southern California?
  • Southern California accounts for over 60% of the entire CA population. According to 2010 Census Data the total CA population is 38.8M of which 22.68M live in SoCal.
  • California has the largest economy in the United States. In fact, according to World Bank GDP estimates from 2014, if California were a country, it would rank as the eighth-largest economy in the world.
  • California has between 500 and 1,000 marijuana dispensaries and clubs. With this foundation, it will be easy to “flip the switch” and allow these dispensaries to begin selling marijuana for recreational purposes.
  • California represents over 60% of the entire national Medical Cannabis Market.
  • In 2015, the California (medical use only) cannabis sales market was projected to be $2.7Bn. The combined sales for the next 4 largest legal cannabis sales markets (Colorado, Washington, Oregon, Arizona) are less than $2Bn. And they are more mature markets. – ArcView State of Legal Marijuana Markets 4rd Edition
What is the legal status of cannabis?
  • The federal government allows states to set their own marijuana and hemp policies without federal interference. Additionally, the DOJ is prohibited from spending any money to undermine state medical marijuana laws and the federal government id prohibited from prosecuting individuals and businesses for drug crimes when they are in compliance with their states’ marijuana laws.
  • 24 states already permit medical cannabis use and four states and the District of Columbia allow full adult use.
  • With nearly a dozen states debating changes to their cannabis laws in the coming year, 2016 will be the tipping point in which the majority of states transition from cannabis prohibition to some form of regulated legal market. Key states including California, Nevada and Massachusetts are expected to legalize adult use while Florida is expected to pass a medical cannabis bill similar to the one that narrowly failed in 2010.
What are the legal classifications of cannabis use?
  • Adult Use – Permits adults to grow, process, and consume marijuana. Adult use jurisdictions often create a regulated retail environment from which consumers can purchase cannabis.
  • Medical Use – Allows patients to consume cannabis for medicinal reasons with a doctor’s recommendation. Some states allow patients to grow their own cannabis while others require that cannabis be purchased through a licensed dispensary.
  • CBD Only – Permits medicinal use of cannabis products that have little or no tetrahydrocannabinol (THC), the main psychoactive compound in cannabis relying instead on cannabidiol (CBD).
Why Invest In Private Cannabis Companies?
  • The values of publicly traded cannabis companies have not kept pace with the growth of the industry.
  • The entire cannabis industry attracted $215M in VC funding in 2015 in 98 deals, up from $97M in 2014 in 63 deals. – CB Insights Report published Feb 2016
Where should I go to learn more about the cannabis industry?
Is it legal to invest in cannabis companies?
  • Canopy San Diego only invests in legal cannabis companies. Legal cannabis companies provide ancillary business solutions, services, and products for the cannabis industry and do not engage directly in the cultivation or sale of the plant and its derivatives. Legal cannabis companies are not subject to the same accounting, banking or legal risks associated with cannabis companies that “touch the plant”. Please visit our HOME page for examples of cannabis ancillary solutions.
  • Investments in cannabis companies that touch the plant are subject to their states’ laws.
How do I get involved?
    • If you are an entrepreneur looking to join the program, please visit our APPLY page for information and the on-line application. Feel free to CONTACT US to arrange a call with our team.
    • If you are interested in becoming a mentor, please visit our MENTOR page for information and CONTACT US to arrange a call with our team.
    • If you are interested in investing, please visit our INVEST page for information and CONTACT US to arrange a call with our team.