They couldn’t be more on the mark with this article. Will Silicon alley be as slow to cannabis as they were to the professional services market. This article suggest they shouldn’t dilly dally.
Responsible ways tech companies can get a head start
There are a number of ways tech companies can test the waters of cannabis without diving in. The first is to make early-stage investments, with options for a controlling stake in the future, in existing, small-scale tech companies currently serving the cannabis industry. When (not if) the industry clears federal hurdles, the expertise of a firm already serving the industry will simplify scaling up to meet demand. Plus, large tech companies will be looking to buy up established players, setting investors up for profitable exits.
Tech companies can also begin developing solutions for the cannabis industry and improve their bottom line at the same time. Companies can start building and testing solutions and — with expert guidance — maximize R&D tax deductions and credits, which could pay for the effort itself (and possibly lower the tax burden enterprise-wide) while the company waits for federal legalization before launching products.
Those are just samples from the multitude of ways tech leaders can place themselves in a winning position when cannabis is legalized. It’s rare to have an opportunity to get in on the ground floor. Despite the challenges of working with the cannabis industry, the effort will pay off for the brave entrepreneurs who start now.