California Marijuana Legal 1-2018 & Shut Out Bank Investors: Cryptocurrency The Answer?
Marijuana is becoming legal in California, and entrepreneurs are rushing in... On Jan. 1, companies will be able to produce and sell marijuana in the state, making it one of eight in the United States where the recreational use of cannabis has been legalized. But finding expertise and financing won’t be easy.
Cannabis use still lacks legal standing with the federal government. That means growers, processors and retailers can’t open accounts or access lines of credit from federally insured banks. They can’t write off business expenses when they file their taxes, and it’s extremely difficult to purchase crop insurance (think of the recent spate of fires in California).
“It’s federally illegal, and that makes running a cannabis business more challenging than arguably any other kind of business,” said Kris Krane, co-founder of 4Front, a medical marijuana investment and management firm.
Cannabis-focused accelerators and investment companies aim to change that.
These enterprises have long been a presence in Silicon Valley, offering mentoring and investment in exchange for an ownership...they can introduce its entrepreneurs to angel investors and other private capital sources.
Funders have reason to be interested. Selling cannabis in California has the potential to generate $5 billion a year, once a critical mass of businesses have proper permits, according to the Agricultural Issues Center at the University of California at Davis. Each harvested acre of cannabis could be worth millions of dollars, based on current prices in Washington, Oregon and Colorado, according to Greg James, the publisher of Marijuana Venture, a monthly business magazine.
Two years ago, Ben Larson and Carter Laren co-founded Gateway, an accelerator in Oakland that has helped expand 19 cannabis-related start-ups specializing in a wide variety of business activities, including payment solutions, cannabis products aimed at seniors, agricultural technology and hemp-based plastics.
When the pair started, medical marijuana had been legal for two decades, but Gateway found...with legal adult use in sight, the industry is making a rapid transition to more sophisticated, transparent and mainstream business practices, he said.
Gateway now offers $50,000 in exchange for 5 percent of a company’s ownership, and brings the management team of start-ups into its offices for about six months to work with experts, mentors and potential investors. Applicants present their business plans and answer questions on legal issues, trends and the competitive landscape. Mr. Larson sometimes assigns homework, asking founders to conduct customer interviews and do market research.
Entrepreneurs bring a wide variety of ideas because the industry is just forming. For example, new apps, sensors and machinery help control growing conditions, save energy and reduce labor costs in greenhouses.
https://www.nytimes.com/2017/12/27/business/smallbusiness/california-marijuana-start-ups.html
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I think that it is clear that all areas of the marijuana industry will explode with tremendous returns for investors. Real estate prices automatically shoot up immediately after legalization.
FACTS:
64% of all Americans are in favor of legalizing marijuana
Cannibus is expected to hit 50B in 2018
39M smoke pot for fun
Carry 1 Ounce & Grow 6 Plants If Age 21
15 New States Intend To Legalize
Raw land in California is going to be the next big gold rush as a result of cannibus! No doubt. There are plenty of investors from other states that want to invest but can’t because it remains illegal in their state. International investors will show up with serious money too.
I have friends in Oregon that are in the cannibus industry. They were shopping for a good deal on property. When cannibus was legalized in Oregon, the prices shot up so high, they could no longer afford to buy property.
Land is the absolute best way to profit from the cannibus industry without ever getting involved whatsoever.
The key is to find usable land that is zoned for agriculture. Don’t buy something that can’t be farmed.
San Diego county is my pick. They are taking a conservative approach to wait for laws to be passed. It is also the area that everyone wants to live. It is a win-win no matter what.
Land boom has a direct correlation to new legislation and the rise has holding power. What are the areas that you think have the most value for the investors?
Ramona! It is a small farming community that is seeing growth. It is a very short distance to San Diego. Flat farming land available there too. It is hard to find land anywhere in Southern California. When you do it is on the side of a cliff and unusable. Ramona is one of the last good places to find land. It is a little known secret.
What about Imperial County?
Great farm land there, but may be too hot to grow in the summer.
There’s so many people growing on large scale the growers market will collapse. I’m in Monterey County and there’s so many greenhouses being converted to cannabis and it’s estimated that in Monterey County alone is growing 5 times the cannabis that the whole state consumes! Going to be very interesting to see how this plays out.
Really interesting! I didnt realize that Maine, Alaska, and Massachusetts had legalized cannibus. I do wish more states would allow it at least for medical purposes. I've seen how affective it can be for some people!
Wooowww amazing..
a government that is very understanding about the needs of the people.
I see that in a few years, many states have legal for marijuana.
If in my country. In Indonesia. Marijuana still illegal, and for every one making marijuana or have marijuana, so will in prison for at least 5 years in prison.
@senseicat
What do you forsee happening if the laws were to change in Indonesia?
I live in Canada and 5 out of 10 of our provinces are in the works to legalize marijuana in a retail framework. In Canada we have had a explosive increase in laced marijuana with fentanyl causing an epidemic of deaths of especially young people. With the legalization of marijuana people can ensure they are getting clean weed. If people are going to smoke weed there should not be at risk that it is going to kill them. This is my point of view.
@donnab is one of the reasons why steemit is my first and only social media site. You educated me about how legalization is affecting folks in a different country. There is so much information to process in our own local community and country so our shared site makes me feel smarter and wiser.
steemit is great it keeps us informed and also individuals points of view. Double whammy.
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Simply outstanding!
It's funny, a lot of other places already had legalized it, this will now become a growing market more than anything else, it would not be long before people forget it was something illegal in some point in time. I can help but to compare it with the growing market of bitcoins the outcome will be the same, thanks for sharing this news with us @senseicat
The financial growth rate is unreal and surpasses projections. Currently, the folks in the know about crypto are the minority so the upshot potential is huge as it is adopted into the mainstream similar to growth of cannabis.
It is easy to understand in my opinion, if you compare it with the consumption of cigarettes or alcohol, I want to clarify that I am not in agreement with the use of drugs, of any kind, including legal ones such as alcohol and cigarettes.
But it is a fact, that the enormous public expenditure and the efforts of the governments to stop their distribution and manufacture, have only managed to make the business more lucrative, there is more demand and higher prices. So, it is logical that the government legalize some drugs, this decriminalizes its distribution and consumption (which in any case occurs), it allows to obtain income to the national treasury product of this economic activity, demotivates to the criminal bands because the prices of them will fall and they lose control and power that they have through them.
I repeat I am not in agreement with your consumption but I understand the logic behind this decision.
On the economic, the number as presented are very motivating, regardless of the lack of credit, an investor with capital would see a very rapid return on investment and many crypt holders have that capital XD.
I know it's a long comment and if you got here thank you for reading me: P
What are the laws in Venezuela?
Here the laws penalize the consumption and distribution, but the reality is something different, because of the political and social disaster. Which is a breeding ground for any thing, even it is possible for some people to have more profits selling basic products in black markets than with drugs
PD: basic products, toothpaste, deodorant, soap, sugar, coffee and so a long list
What is the normal cost vs the black market prices for those consumer essentials?
For example a kilogram of Vermicelli costs regulated by the government about 7,000Bs and in the black market it is sold between 70,000Bs to 90,000Bs. about 1,000% - 1,285% more
Update: To put things in context, the monthly salary is Bs. 700,000, which is about $ 5 or $ 6 at today's exchange rate.
I think the legalization of substances that harm human health is not the right decision....
How is legalization of cannibus any different from the use of pharmaceutical drugs?
In my opinion marijuana should be banned.It is fit for nothing for life.
We should not take short route for enjoyment.
Should it be banned for both medicinal as well as recreation?
medicinal ok but not for recreation it should be banned