Venture Investment: Should We Invest In Marijuana Startup

Venture investment is one of the riskiest types of business investment one could make. At the same time, it could be a huge blessing if you find and choose the right business to fund. Grand View Research, Inc. reported that the legal marijuana market expects to reach USD 146.4 billion in revenue by the end of 2025.

Is Investing in Marijuana Immoral?

A primary reason for fear of marijuana is the harmful and abusive use of the produce. Marijuana, also referred to as cannabis, contains delta-9 tetrahydrocannabinol (THC), which gives the substance a psychedelic kick and cannabidiol (CBD), which gives off a therapeutic feeling to the user. People use marijuana as recreation for its benefit of relaxation, euphoria – the illusion of pleasure and bliss, and libido increase. Significant side-effects include perception distortion of space and time, auditory and visual hallucinations, ataxia – the involuntary reflex of the muscle, and depersonalization, and derealization. It is often associated with reduced quality of life, unproductivity, and crime.

Ironically, first world countries are legalizing marijuana for increased quality life and suppression of crime. Marijuana is now a popular subject for research and medicine. Cannabis for recreational use is controlled and well regulated by authorities. Decriminalization of marijuana combated the black economy. The key to proper use of marijuana is education, awareness, and effective authorized regulation.

Investing in marijuana is funding for safer and aware usage of the said drug. Promoting a better option and educating people is enough reason to suppose that venturing in cannabis is moral. Besides, legalizing marijuana has led scientists to many humanitarian breakthroughs. A piece of recent news from Forbes states that cannabis-based medicine was invented, with a 90% healing rate, to heal intractable chronic wounds.

Medical Marijuana Boosts Demand

Pharmaceutical industries had been eyeing on the benefits of marijuana. Many states and nations have legalized cannabis for medicinal and research purposes. This decriminalization caused breakthroughs and opened doors to more investigations. The interest in cannabis has lifted its market value and continues to proliferate. Professionals claim cannabis to cure or to help alleviate suffering from these diseases and disorders.

·         Parkinson’s disease

·         Alzheimer’s disease

·         Acquired Hypothyroidism

·         Acute Gastritis

·         Bulimia

·         Bell’s Palsy

·         Encephalitis

·         Epilepsy

·         Epididymitis

·         Nausea

·         Seizures

·         Schizophrenia

Decriminalization for Recreation

The decriminalization of marijuana decreased the incidence of black market activities. The legalization of marijuana opened an opportunity for markets that cater to the recreational use of cannabis. Cannabis-based products have circulated in the market, which is strictly regulated by the authorities. People in business opened cannabis parlors. Some innovate burning gadgets to inhale cannabis oil.

The business opportunities for marijuana are extensive and growing. Venture investing in these businesses is most likely to be secured due to trends and digital marketing. The key to choosing the right marijuana business to venture is to observe their response to trends. Besides, there are variants of marijuana available in the market. For example, some strains will be attractive to sell rather than others and some are mainly used for extracting oil. To know more about one of the best selling strains, check out this review.

The Marijuana Stock Market

Top marijuana stock markets focus on research and medicine development. Besides the innovative purpose of marijuana markets, venturing into these markets is worth your capital. The marijuana stock market hit a 23.9% compound annual growth rate, with USD 11.9 billion market value in the USA back in 2018 alone.

The National Association of Securities Dealers Automated Quotations System or NASDAQ holds a handful of marijuana stocks for people to invest in it. NASDAQ is the first electronic stock exchange system. It is well known to venture investors who are into technology and biotechnology. Here are a few NASDAQ stock markets related to marijuana.

·         Arena Pharmaceutical Inc. with 29.27% total annual return for $20.06

·         Cronos Group Inc. with 10.48% yearly total return for $8.96

·         Village Farms International with 96.59% total yearly return for $8.31

·         Zynerba Pharmaceuticals Inc. with 36.06% full annual $8.15

Marijuana market publicized its shares to raise funds and continue their operations. The rise in demand is an excellent reason to consider investing in this stock market. Besides, more and more nations and states consider decriminalizing and legalize marijuana. Public awareness and education pushed innovative initiatives to study medical and recreational marijuana. The following are marijuana stocks with their capital.

  • Canopy Growth with $14 billion market capital
  • GW Pharmaceuticals with $5.3 billion market capital
  • Constellation Brands with $33.7 billion market capital
  • Scotts Miracle-Gro with $5 billion market capital

In the case of Canada, the legalization of marijuana caught the attention of investors. As a result, the Canadian cannabis market had an outstanding $600 million in sales in 2018 and is expecting to reach $5.4 billion in 2022, which is a compound growth of 55%. Germany had legalized marijuana in 2017 and had $9 million in sales, which will grow to around $1.6 billion in 2020.

Yes, the marijuana market is a haven for venture investors. The marijuana market is pushing through barriers to extend beneficial marijuana to the public. Are you ready to venture into this innovative market?

Author image

About Lakshya Singh

I am a visionary content creator and internet researcher.
You've successfully subscribed to StartupTalky
Great! Next, complete checkout for full access to StartupTalky
Welcome back! You've successfully signed in.
Success! Your account is fully activated, you now have access to all content.