By 2025, the U.S. cannabis market is expected to reach annual sales of $26 billion, according to projections by New Frontier Data. And, as legalization spreads across the nation, entrepreneurs and investors are seeking new businesses avenues to cash in on this massive market opportunity.
But even in this rapidly evolving context, much of the industry still runs on pen and paper records, and face-to-face communication. While this has many benefits, ranging from being able to leverage personal connections to being immune to cyber attacks, these systems also come with increased chances of making errors, which ultimately create liabilities for businesses and government agencies.
Seeking to address this issue, government software behemoth, Accela,which was acquired by Berkshire Partners in 2017, in a transaction touted as “the biggest gov tech deal ever,” has partnered up with Los Angeles-based tech startup Kind Financial to launch a cloud-based seed-to-sale solution for the cannabis industry, the companies revealed in an exclusive conversation ahead of their press release hitting the wire Wednesday morning.
“The partnership will provide state and local governments with advanced capabilities to collect and monitor the critical data needed to track compliance with jurisdictional rules, laws, and regulations governing cannabis-related businesses and the legal supply chain,” they explain in the release.
By helping agencies navigate the complex and changing regulations that come with legalization, the rest of the players in the industry – from farmers to businesses – can better meet industry and consumer demand, Kind Financial’s David Dinenberg explicated during an exclusive conversation.
The product is a true cloud-based and Azure-compliant system. This means that multi-tenants can take advantage of all standardized Azure technology.
A One-Of-Its-Kind Solution?
Accela claims it has built the only end-to-end cannabis regulation solution (at least the only one in the market right now) that provides local and state governments with all the capabilities they need to manage cannabis rules and codes of practice.
The GovTech company also announced a partnership with another company called cloudPWR recently. cloudPWR will provide the patient registry component of this larger ecosystem now including Kind. In turn, Kind will serve as the track and trace component.
“State and local governments are increasingly requesting more advanced cloud-based technology to help them to keep up with a rapidly changing cannabis landscape,” said Greg Felix, Vice President of Strategic Solutions at Accela. “The partnership between Accela and Kind marks the next generation of technological solutions that the market is demanding. We are both committed to offering new integrated capabilities, data security, workflow optimization, and the tools to help maximize tax revenue and prevent diversion of legal cannabis to the illicit market or inversion of illegal product into the legal market.”
“We are excited to be an integral component of Accela’s end-to-end ecosystem for governments to manage the complex world of cannabis regulation across business permitting, track and trace, and patient registry,” ended David Dinenberg, CEO at Kind. “By partnering with Accela, we believe that we can exponentially expand and accelerate our efforts to help the fastest-growing industry in the world reach the level of maturity and business recognition it deserves.”