In the months since Canada became the first G7 country legalize cannabis for recreational use, much has been written about the opportunities this represents for producers and investors who want to get in on the ground floor of an industry that is poised to offer major returns in the months and years to come.
But cannabis production is only part of the story, and while many headlines emphasize the profits being made through investment in cannabis producers, cannabis tech is proving to be just as exciting an opportunity for companies that see a role for themselves in helping producers navigate the challenges of e-commerce while staying compliant with regulations.
Cannabis may be legal, but it is still subject to a strict legal framework, one specifically designed to quash the extensive cannabis black market that developed over the decades in which cannabis was illegal. In order for a producer to stay compliant with cannabis regulations, they need to provide extensive documentation covering the entire life of their cannabis products from seed to sale.
This has led to the development of innovative new cannabis tracking and reporting software platforms designed to help producers manage the large quantities of data they need to report on if they are to stay compliant and keep their license.
These cannabis tech platforms are playing a huge role in defining how the cannabis industry co-operates with government regulations, and many countries are watching closely to see whether these innovations really can keep profits from legal cannabis out of the hands of criminals.
But many cannabis tech platforms are doing more than just help producers keep track of crops and harvests, and some of the most exciting new developments in cannabis tech are designed to streamline e-commerce and registration for patients using medical cannabis.
One of the challenges in meeting cannabis demand has been providing consumers with ways of accessing cannabis products. While many dispensaries have sprouted in large cities, rural municipalities are often more resistant to letting such businesses set up shop.
E-commerce represents a solution to this problem, and cannabis tech companies have played a vital role in helping producers set up e-commerce platforms that include age-verification and client verification features.
Tech solutions have also been required to make it easier for producers to connect with patients and clinics. Platforms like Ample Organics’ AmpleCare have made it much easier for clinics to register cannabis patients electronically, reducing wait times and getting patients the care they need in a more efficient way.
For all these reasons, innovative cannabis tech companies have played a pivotal role in the cannabis boom. Without cannabis tech, production would be more cumbersome and less profitable. For investors looking at ways to get a healthy return on investment from this vital and growing segment of the market, investing in cannabis is about a lot more than just production: there is plenty of money to be made in the tech side of cannabis as well.