Investors, marijuana entrepreneurs discuss pot industry
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SEATTLE -- Investors are eyeing millions of dollars in potential profit as Washington transitions into the marijuana business.
Some of those investors met up with start-up companies on Monday to hear pitches from entrepreneurs hoping to profit from the sale of recreational pot.
"A geyser is about to go off. This industry is about to totally explode," said Troy Dayton, CEO of the Arcview Group.
When voters approved Initiative 502 in November, it turbocharged marijuana into a legitimate business. That is unless the federal government sues to halt the law, which it can do.
But Dayton has found investors willing to take that risk. As many as 360,000 people are projected to buy pot at state licensed marijuana shops when they open in December. That would create an instant billion dollar business.
"Up until this point in the cannabis industry, I think some people have the perception of hippies with dreadlocks and tie dye selling hemp bracelets, and really that's not what it is today," said Jason Levin, who's pitching investors to buy his Uptoke humidifiers.
In the past, investors have bought software management systems for marijuana and websites that offer pot reviews of dispensaries. The big risk will be for those who invest in retail stores in the Seattle metro area.
The stores can't be near parks, child care facilities, schools, youth centers and video arcades. As it stands, the stores can be near transit centers and libraries as long as they're zoned properly.
"I don't think we should see adult-use cannabis stores on every other corner," said Betty Aldworth, the deputy director of the National Cannabis Industry Association.
Dayton thinks a quote by Mark Twain is especially relevant today.
"He said, 'During a gold rush it's a good time to be in the pick and shovel business,' and that's very true right now," Dayton said.
The business world has had its eye on Washington to see how people will profit from pot, and Dayton predicts a gold rush will be on in the pot business by the end of the year.
On Monday night, Seattle Mayor Mike McGinn will speak to the National Cannabis Industry Association.
Some of those investors met up with start-up companies on Monday to hear pitches from entrepreneurs hoping to profit from the sale of recreational pot.
"A geyser is about to go off. This industry is about to totally explode," said Troy Dayton, CEO of the Arcview Group.
When voters approved Initiative 502 in November, it turbocharged marijuana into a legitimate business. That is unless the federal government sues to halt the law, which it can do.
But Dayton has found investors willing to take that risk. As many as 360,000 people are projected to buy pot at state licensed marijuana shops when they open in December. That would create an instant billion dollar business.
"Up until this point in the cannabis industry, I think some people have the perception of hippies with dreadlocks and tie dye selling hemp bracelets, and really that's not what it is today," said Jason Levin, who's pitching investors to buy his Uptoke humidifiers.
In the past, investors have bought software management systems for marijuana and websites that offer pot reviews of dispensaries. The big risk will be for those who invest in retail stores in the Seattle metro area.
The stores can't be near parks, child care facilities, schools, youth centers and video arcades. As it stands, the stores can be near transit centers and libraries as long as they're zoned properly.
"I don't think we should see adult-use cannabis stores on every other corner," said Betty Aldworth, the deputy director of the National Cannabis Industry Association.
Dayton thinks a quote by Mark Twain is especially relevant today.
"He said, 'During a gold rush it's a good time to be in the pick and shovel business,' and that's very true right now," Dayton said.
The business world has had its eye on Washington to see how people will profit from pot, and Dayton predicts a gold rush will be on in the pot business by the end of the year.
On Monday night, Seattle Mayor Mike McGinn will speak to the National Cannabis Industry Association.
and we are celebrating the legalization of a mind altering drug why?Â
@swatguy1 You mean Alcohol?
Back in the '70s, the state decided that they were sick of the Indians getting all the revenue from fireworks, so they made all fireworks (except m-80s and cherry bombs) legal and sold them at local stands. Â People went nuts and there was a record number of fires and fingers getting blown off that year, and the legislature reconsidered its position and made the reservation type fireworks illegal again.
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 If this becomes a situation where you see kids openly smoking dope on the street due to its availability, there will be a backlash.
That sounds convenient, because there's already marijuana surrounding transit centers and libraries.
Not. The marijuana growing business is not a sustainable business. I talked to some growers in Oregon. Yes, they are making a lot of money now, but they told me that as it becomes legal everywhere, people will grow their own and they will no longer be able to sustain their business.
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The tax revenue is a joke, the government will see little tax revenue, not nearly enough to cover their expenses of regulating the industry.
@Vinnie I don't think people are going to grow their own pot besides that's not LEGAL. The same logic would then apply to meth heads, alcholics etc.
 @Vinnie I don't think as many people will grow their own as everyone likes to think. The average Joe who just wants to get high every now and then isn't going to invest in all the gear, space, time, and energy it takes to grow when he can pop down to the local shop once in a while on the weekends. You're assuming that the vast majority of smokers are 24/7 marijuana addicts. I don't think that's the case.
 @jowsuf  @Vinnie It's like suggesting that everyone will brew their own beer or make their own wine.  Some do, but it's the exception.
Come on, the only one that will make money for sure is going to be the state - with tax, fines, insurance, enforcement, and whatever else the state can pile on this that will make money for the general fund.Â
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Just like when the state was forced out of the alcohol business and all of the "get rich fast" folks were paying top dollar for the state stores, and now they are having regrets.
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Not saying that someone will not be sucessful, butTroy Dayton  paints it as a no lose investment, it is not.Â
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On every corner? Let's suspend our disbelief in favor of our attitude toward alcohol...I note not one word of outrage has tripped off anyone's lips about how you can't walk fifty feet in any direction without stumbling over boxes of hooch of all kind. The hypocrisy we're capable of in our attitudes toward drugs is hilarious. In a tragi-comic way.