Cannabis is legal in some form in 44 out of 50 states in the U.S. This has led to a rise in the number of new cannabis companies looking to modernize the research and distribution of cannabis. These companies have grown tremendously in the past 5 years. What this means, of course, is that there are a lot of cannabis businesses that you can invest in now that have a big capacity for growth in the coming decade. So which cannabis startups should you be on the lookout for? Here’s a list of 5 of the best cannabis startups in the U.S. ranked in terms of growth rate.
1. Green Thumb Industries
Green Thumb is one of the most profitable cannabis startups. Founded in 2014, the company deals with the retail of cannabis products, including pre-rolled joints made from top-notch strains.
Green Thumb generated a net income of $52 million between January and September 2021, and the company is highly liquid, with over $285 million in cash. The company would record much higher incomes if it wasn’t for the punitive tax laws governing cannabis companies.
While initially located in its hometown of Chicago, Green Thumb has expanded to operate in California, Florida, Virginia, and Colorado. The price per share is currently valued at around $20, and for a company that has grown by over 2,700% in the past 5 years, this amount is definitely going to rise in the next half-decade.
2. Confident Cannabis
Confident Cannabis is a B2B company that offers cannabis growers a voice over the price of their products. Started in 2015, it is the biggest company in the world that offers a real-time cannabis database. The company provides cannabis labs test kits they can use to measure the composition of a grower’s harvest, enabling dispensaries to provide their customers with the right strains based on their specifications.
Confident Cannabis has raised over $15 million in 3 rounds of funding. The company is currently valued at $4.5 million and, in 2022, has made over $1.7 million in revenue.
So, if you’re looking to invest in an ethical company trying to put the power back in the hands of producers, consider Confident Cannabis.
Strainz is a company based in Las Vegas founded in 2013. The company offers high-quality, safe cannabis strains that could be accurately prescribed to patients, whether they were children, pets, or the elderly.
Over the years, Strainz has won multiple awards for its high-quality cannabis products. Among its popular products is its range of tinctures and vape products made from certified strains. The company runs its own farms so customers are assured of the quality of the products they purchase from their dispensaries.
The company has raised over $8 million in funding and generates over $300,000 in revenue each year. The business is scheduled to expand into more states in the coming years, so keep a lookout so you can be among the first people to invest in it when it finally trades publicly.
This California-based cannabis company was founded in 2014. It is a software company that offers inventory management for cannabis dispensaries. Its point-of-sale software offers cannabis retailers a safe and smart way of processing transactions.
In addition to POS automation, GreenBits provides data to cannabis businesses that help them make important decisions. These include opportunities to expand the scope of the business and even threats from competitors and other factors that might affect their growth. GreenBits’ team of experts is always at hand to serve businesses, making the software an attractive choice for many cannabis businesses.
GreenBits’ software is used in over 1,200 cannabis retailers in over 13 states throughout the US. It processes revenues of around $4 billion a year, which goes to show just how much businesses trust the software. With its revenues projected to rise steadily soon, GreenBits is definitely a company to keep an eye out for.
Wurk is another software designed for cannabis businesses. However, instead of targeting point-of-sale transactions, Wurk offers cannabis businesses solutions for payroll and human resources.
Wurk’s software is integrated into a company’s system to handle employee onboarding, schedules, timekeeping, and payroll. It also acts as an HR consultant, offering best practice solutions to cannabis companies. Additionally, Wurk ensures businesses remain in compliance with the regulations around cannabis distribution and selling.
Since its founding in 2015, Wurk has managed to raise over $20 million in funding, including the $3.5 million it managed to raise last year. Given the faith its investors have in it, you should keep an eye out for future opportunities to invest in this company.
Bonus: Ardent Cannabis
Ardent Cannabis is a woman-owned, black-owned business that has been gaining popularity in the past few years. The company is famous for its decarboxylation of cannabis. This is when cannabis is activated so you can use it in whichever form, whether you want to eat it in edibles, smoke it, or infuse it.
Ardent Cannabis provides equipment that helps in the process of decarboxylation. The Ardent FX and Ardent Nova are portable ovens that help customers activate cannabis wherever they are so they can get maximum potency from it.
This company has caught the attention of Forbes and Vice. In 2019, the company made sales of over $3 million for its Arden Nova, and these are expected to rise as more of the East Coast fully legalizes marijuana. So this is definitely a company you should keep an eye on in the coming years because it promises exciting investment opportunities.
To Sum Up…
Currently, in the US, cannabis companies are mostly startups that constantly have to fundraise to scale up. However, as the move to legalize gains momentum, these companies are going to have millions of Americans to serve. There’s really no better way to show your love for the herb than by getting involved with businesses designed to show the world that cannabis is not the devil’s plant. And if the company you’re interested in is not open for public investment, you can support it by purchasing their products until further investment opportunities crop up. With the astounding growth rates, you are sure to reap very handsome pay-offs in just a few years.
Related: Best Marijuana Tech Companies