The COVID-19 crisis is producing an untold quantity of unpredictability through every organisation sector, however for marijuana start-ups, it’s exacerbating an important market that was currently in decrease.
TechCrunch spoke with Schwazze CEO Justin Dye following his company’s current rebrand. He joined the company when it was Colorado’s Medicine Male Technologies (MMT) in late 2019 and is revamping the company, including altering its name to Schwazze and obtaining a handful of business to create a healthier, vertically integrated marijuana business.
The cannabis market is experiencing a correction after a period of rapid growth. Shops are feeling the discomfort, and public valuations are settling under IPO levels– and this was prior to a pandemic swept the world. Cannabis media outlet Leafly laid off 91 workers in late March, and Eaze, an early mover in on-demand pot delivery, is experiencing major trouble after raising severe money and just recently losing a leading partner in Caliva. In a number of states, efforts are underway to prop up the cannabis market by requesting for the federal government to permit these businesses to be eligible for federal monetary relief.
According to Color, there are several things CEOs of cannabis companies of every size should pursue. His guidance echoes what TechCrunch has heard in other verticals, as well: Throughout the COVID-19 crisis, cannabis companies should hunker down and lean on strong teams to weather the storm. Once the skies begin to clear, capital will be available to the survivors.
One, the marijuana market is searching for economically sustainable business, Dye said.
“This next reset in the marijuana industry will not just be aspirational, but it’s going to be paired with a requirement for performance in terms of carrying out versus a plan and driving profits– or driving it to create free capital to be reinvested in the business and item experiences.”
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.