The COVID-19 crisis is producing an unknown amount of unpredictability through every organisation sector, however for marijuana start-ups, it’s exacerbating an important market that was already in decrease.
TechCrunch talked to Schwazze CEO Justin Dye following his business’s current rebrand He joined the business when it was Colorado’s Medicine Man Technologies (MMT) in late 2019 and is revamping the company, including changing its name to Schwazze and acquiring a handful of companies to develop a much healthier, vertically integrated cannabis business.
Cannabis media outlet Leafly laid off 91 workers in late March, and Eaze, an early mover in on-demand pot shipment, is experiencing major problem after raising severe money and recently losing a leading partner in Caliva In several states, efforts are underway to prop up the marijuana market by asking for the federal government to permit these businesses to be eligible for federal financial relief.
According to Dye, there are several things CEOs of marijuana companies of every size ought to work toward. His suggestions echoes what TechCrunch has heard in other verticals, too: During the COVID-19 crisis, marijuana companies need to hunker down and lean on strong groups to weather the storm. When the skies start to clear, capital will be available to the survivors.
One, the marijuana market is searching for financially sustainable business, Dye stated.
” This next reset in the cannabis market will not just be aspirational, but it’s going to be paired with a requirement for efficiency in regards to executing versus a plan and driving profits– or driving it to develop free capital to be reinvested in the business and product experiences.”