Cannabis Technology Moves as the World Patiently Awaits the Possible Next Wave of Legislative Change

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The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

A world of advanced technologies has made its way into the cannabis industry.

Whether it’s data analytics, artificial intelligence, software services, or genetic engineering, few sophisticated technologies have yet failed to integrate into the cannabis sector. Aside from a need for innovation in a highly competitive space, the confusing regulatory infrastructure of cannabis laws may have also precipitated the need for such technologies, and entrepreneurs have been quick to seize this opportunity.

Since 2018, more than 300 Software as a Service (SaaS) companies have launched with a primary focus on providing cannabis-specific solutions. These solutions address a range of procedures throughout the seed-to-sale cycle. Aside from solutions to inventory, delivery, and sales management you can find throughout many industries, industry-specific solutions like seed cultivation and harvesting optimization have also been implemented.

A deeper dive into cannabis technology (cannatech) innovations yields a significant list of utilities, and investors from all over are taking note of this vertical and its niches. Whether it’s Flowhub’s customer relationship management (CRM) software, PacRoots Cannabis’ PACR genetic engineering, or Trym’s big-data analytics, there has arguably never been a more eclectic mix of technological solutions serving the cannabis industry.

WebJoint: A Possible Cannatech Play?

Among the major players in the cannatech niche is WebJoint, a cannabis delivery software that reports they have already captured ⅓ of California’s cannabis retailers.

An early entrant into the niche, WebJoint was created to alleviate the burden retailers were experiencing by tracking sales and inventory levels on pen and paper. Back then, retail deliveries trying to keep up with the demands of the regulatory infrastructure did not have an adequate tech solution for their operations, making it difficult for them to optimize sales and deliveries. Since focusing solely on retail deliveries, WebJoint has built a comprehensive suite of tools that allows cannabis deliveries to operate the entirety of its business, maintain compliance, and scale their business for growth. WebJoint was first to market for a number of tech tools to support cannabis deliveries, such as geofencing for delivery zones and supporting inventory kits - both unique to California retailers.

Understanding these unique delivery problems have allowed WebJoint to amass a delivery network that spans the entirety of the state. With this, the company plans to use its delivery network to now solve the direct-to-consumer issue experienced by cannabis brands, retailers, and consumers. Because of strict marketing laws and licensing requirements, consumers can experience difficulty locating and purchasing their favorite brands. WebJoint’s platform aims to alleviate this consumer-to-brand disconnect and hopefully make your next cannabis purchasing experience as easy as it would be to buy anything else on the internet.

Since the company’s inauguration in 2017, it has amassed more than $161 million worth of orders and experienced a 346% year-on-year increase in orders delivered through its platform.

WebJoint has done this despite only operating in its core state: California. It’s now looking into expanding its operations into the remaining legalized states. 

What Does the Future of Cannatech Hold?

While some investors are already looking for potential plays in this niche, others may be wondering at the state of the industry. Investments into cannabis technologies are higher than ever before - with some tech companies being valued in the billions. The influx of investments and the cultural narratives around cannabis changing could signal a new era for cannabis companies to prove their value. Tight restrictions and a lack of federal clearance continue to introduce risk into the emerging cannabis sector, but a dive into the operations of major players and industry metrics may provide more context.

Despite its many regulatory burdens, the cannabis industry is expected to grow to a $70 billion industry by 2028, expanding at a compound annual growth rate (CAGR) of 26.7%. A report by S&P Global Market Intelligence backs this industry metric, indicating that more than 700 cannabis-based mergers and acquisitions have occurred between 2018 and the 3rd quarter of 2020. This industry-wide growth strategy represents an aggressive estimate on the future of the cannabis landscape, an outlook shared by key operators like Tilray Inc. TLRY and Canopy Growth Corp. CGC.

A publication by Pew Research Center, which indicates that fewer than 10% of Americans believe that cannabis should be illegal, may represent another positive metric in the cannabis industry.

You can learn more about WebJoint and its offerings here.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.