From Mobile Phones To Marijuana: Kanvas CEO Talks Hiring, M&A And Cannabis Tech

The trajectory of the mobile phone industry is not dissimilar to the marijuana industry, says California entrepreneur Andy Fathollahi.

"Cannabis use has become far more ubiquitous and those similarities remind me of the early stages of the smartphone revolution," Fathollahi told Benzinga.

Fathollahi knows quite a bit about both sectors. He is the founder and former CEO of mobile accessories company Incipio Group, a company he launched out of his Orange County garage in 1999. From there, Incipio grew into a portfolio of several brands touting $400 million in annual revenue and 500 employees globally. He also wielded M&A to expand Incipio, completing a total of five acquisitions.

These days, Fathollahi oversees Kanvas, a Newport Beach-based startup focused on cannabis technology. Whether Kanvas becomes as successful as Incipio remains to be seen. Until then, here's a look at what the company is doing now and where it's headed, in Fathollahi's own words:

How is the cannabis space similar to the mobile phone industry?

AF: Much like the transition from modest flip and brick phones to today’s smartphones, we’re seeing the industry shift from simple cartridges to pods with built-in tech and intelligence. In addition to the parallels of their evolving technology, we’re seeing the accessibility and use of cannabis become part of consumers’ everyday lives. Cannabis use has become far more ubiquitous and those similarities remind me of the early stages of the smartphone revolution. And given the current climate of the outbreak, we’re seeing that, like the mobile space, cannabis is recession-resistant — more so than I had even imagined.

Last year, Kanvas was "building an all-star team." Has this changed in 2020 due to the COVID-19 pandemic?

We have an amazing team and we continue to grow. Because of the outbreak, we have seen a few people become available that would not have otherwise been available. Our plan is to capitalize on the strong market for top talent.

What new innovations from Kanvas are in store?

Just this week, we launched our Vapetelligence hardware and software platform for brands. It’s an incredible piece of technology that empowers brands to deliver a fine-tuned consumer experience that’s safer, more flavorful and more powerful than anything before. Building on that platform we’re testing sustainable materials for new hardware to launch later this year. Kanvas has recently been awarded patents for the Vapetelligence thermal profile technology and the team is really excited about that.

What lessons have you learned from Incipio that you've taken with you to Kanvas?

A successful company is made of two things: great people and great product. I’ve learned that building a culture of transparency and collaboration is important for successful interdepartmental partnerships and organizational growth. This is proving to be especially paramount in today’s remote work environment in which we find ourselves. During this time, I’ve been hyper-focused on communication and have an open door (phone) policy at all times.

You inked quite a few deals at Incipio. Do you expect Kanvas to conduct M&A as well?

At Kanvas, we’re looking at varying opportunities. The cannabis industry moves at a rapid pace and I do feel like there will be a level of consolidation by way of M&A where businesses with a single product will find themselves as part of companies with a portfolio of products.

Photo courtesy of Kanvas.