Is the Grass Greener on the other side?
This month I explore the cannabis revolution as legalisation continues in the US and Europe in what is set to be an over £100bn market….
By Kajal Sanghrajka, @kajalnyclon
IS THE GRASS GREENER ON THE OTHER SIDE?
For new readers, welcome to the 2019 Transatlantic Post a monthly editorial on innovation, startups and culture across cities. With occasional British satire by Kajal
I wrote this edition partially from Paris, where en-route back to London I got stuck in the “Brexit rehearsal” strikes on the Eurostar for 7 hours. Continuous strikes are one thing Brits love to stereotype about the French. And that they smoke quite a bit. And I recently discovered, it is not just tobacco. France has one of the highest rates of cannabis consumers in the world in a global market that is growing rapidly and is set to reach $146.4 billion within the next 5 years.
Newsweed or Newsweek?
Fortunately, a Parisian startup Newsweed founded in 2016 (not to be confused with its high-brow US cousin Newseek) provides France’s leading cannabis news, facts and figures. Newsweed was recently listed in EU-Startups “10 European start-ups innovating in the marijuana market” along with Prohibition Partners from London and Hempfy from the Swiss which produces premium cannabis tonic. Hempfy’s CEO is betting that healthier cannabis infused drinks will eventually take over alcoholic beverages as a safer alternative. And it is just one of the many growing segments in the space.
Behind the scenes, there are compliance, plant management and POS software for cannabis businesses such as FlowHub. For medical marijuana, GW Pharmaceuticals in the UK is developing prescription medications with a focus on neurological conditions. And in the financial markets, thematic ETF funds such as ETFMG Alternative Harvest broke through the $1bn barrier in February.
Holy Smokes, Snoop Dog raised $45 million for a pot fund…
Last year was also the biggest year in VC financing of the global cannabis industry, helped by the increasing legalisation of marijuana across the US. Unsurprisingly, Snoop Dogg’s VC firm Casa Verde Capital is betting big on legal weed.
For my readers who are savvy or non-savvy investors, it is certainly worth leaving a pot of money aside for new innovations in this industry. In case you need some inspiration for your investment strategy, here are the 20 greatest weed themed songs of all time by the Rolling Stones with Snoop Dogg’s nineties original “Gin and Juice”.
Is the legal grass greener?
Malcolm Gladwell recently wrote a piece in the New Yorker claiming that “Marijuana is not as safe as we think”. He questions whether we know enough about the drug to promote its usage and whether cannabis serves as a gateway drug to harder drugs or is a substitute for it. Scientists, journalists, the Illuminati have polarised views on the topic and we’ll need to make up our own minds on whether the legal grass is greener.
Paradoxically, France has one of the most stringent laws on cannabis but also the highest consumption in Europe. Though it does not imply causation — what is clear is that France and the rest of Europe will be reforming its policies over the next 3 years to be the largest cannabis market in the world. So we will need adapt as we go along.
For those that want to read further, below the fold this month is a report by CB Insights on the Cannabis Revolution, a look into Station F in Paris which is the world’s largest startup campus and news about what you are all up to.
In the end, I did finally make it back in London off the Eurostar, I delivered a talk last week at the Plexal Innovation Center on “Bravery as Strategy”for B2B businesses in the wake of our political deadlock. I shared some lessons learnt from my 80 days around the world across 24 cities over the last two years.
Until next time…if you enjoy the Post I’d be very grateful if you shared it with friends and colleagues interested in innovation, start-ups and cities. Leaving you with a topical quote from Richard Neville….
“Is marijuana addictive? Yes, in the sense that most of the really pleasant things in life are worth endlessly repeating”
Sincerely yours,
Kajal
NEWS FROM THE COMMUNITY
Hats off Vic Arulchandran COO at Nivaura. The company recently raised £20m from the London Stock Exchange. Nivaura were featured in our start up awards nearly 18 months ago when I first met them.
Emma Sinclair and Bethany Koby for making the 2019 Maserati 100 game-changing innovators. We featured their Transatlantic companies Enterprise Jungle and Tech will Save Us following a female founders dinner in London last year.
Our Nordic friends at Future Place Leadership are hosting a number of economic development leaders from across to Europe to look at how places create both economic and social value to people and businesses. Find out more here
My cousin recently passed away at the age of 37 from cancer due to a rare genetic mutation known as RET. The work of Cancer Research allowed him to try innovative new therapies, the first of its kind in the UK. His wife started a campaign to ensure this type of work can continue. See more here.
And finally a playlist to work to by the very talented young singer and musician Aaliyah Sanghrajka, you can hear it on Spotify.
This months title photo is by Pixabay.
Do you have some news to share on innovation, startups across cities in the US or Europe? Please send an email to dbradutanu@gmail.com
AROUND THE WORLD IN 80 DAYS
In the classic Jules Verne novel Around the World in Eighty Days, Phileas Fogg agrees to a £20,000 wager vowing to circumvent the globe in 80 days or less. Reading this novel towards the end of my journey to 24 cities for several days each month since January 2017 — was a timely reminder of the wisdom of travel. Not for its own sake but for how it transforms you and your understanding of people from all walks of life. Here are the top five lessons learnt from my two years of city visits.
THE CANNABIS REVOLUTION
A concise analysis by CB Insights on the broad use of cannabis and its ancillary products. It is having a growing impact on all sectors from beauty to Agtech and software. Worth a read for general knowledge on the topic as well as for notable startups that are leading in each sector.
INSIDE THE WORLDS LARGEST START UP CAMPUS
Station F in Paris houses over 1,000 startups and more uniquely allows corporates and universities into its space. Cohesion amongst these key stakeholder groups is a catalyst for both innovation and the development of Paris’ entrepreneurial ecosystem. Macron has vowed to make France a start up nation, Station F is a step in the right direction.
ABOUT THE TRANSATLANTIC POST
A monthly editorial on innovation, startups and culture across cities. With occasional British satire. Written and edited by Kajal Sanghrajka, Churchill Fellow and Founder of Growth Hub Global. For previous editions see the archive.
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