The Crypto-Cannabis Connection

Giggle weed. Devil’s lettuce. Ganja. Whatever you call it, cannabis is no laughing matter. Despite still being illegal federally, the product is predicted to generate $100BN annually in the U.S. by the end of the decade. Today, we’re looking at the alternative solutions to raising capital and going public for founders and investors in the legally hazy space.



One investment fund thinking outside the box is Luxembourg-based venture fund Global Cannabis Capital, which invests primarily in Latin America. The fund considered a traditional IPO through cannabis-friendly Canada but is opting instead to sell tokens on the Ethereum blockchain to act as equity in the company. Come to think of it, the early adopters and vocal proponents of cannabis and crypto seem to be one and the same–just look at Elon Musk.

Cannabis-related NFTS are also on the rise, with cannabis companies looking for more ways to grow connections with their buyers, including coining the first record of a particular strain.

With traditional banks backed by the Federal Reserve staying on the sidelines, crypto is jumping feet first into weed startups. Coins dedicated specifically to the purchase of marijuana have been in rotation since 2014. But the popularity and demand of crypto for purchases at dispensaries aren’t all that high.

For other cannabis startups seeking the green light on public trading, there are always SPACs. Leafly, the e-commerce brand for weed, went public through a SPAC merger in February and has modest but positive returns thus far.

Some companies are still raising money the old-fashioned way. CANN is a THC & CBD beverage company that–get this–comes in a can. Gwenyth Paltrow and Adam Levine of Maroon Five are investors (and promoters). Then there’s Backbone. You wouldn’t know by quickly looking at its website, but it’s not your average software startup. The company supplies the software and know-how for cannabis companies to get off the ground.