Originally published on June 8th, 2020 for Reality Sandwich
Since marijuana was legalized in many states across the country, the legal marijuana industry has grown to $13.6 billion creating 340,000 jobs in the sector. Investors and entrepreneurs saw a rich business opportunity in recreational cannabis. The money came pouring in and startups on everything from CBD and THC-infused lube to Uber for weed exploded onto the scene. According to cannabis industry research firm, Viridian Capital Advisors, marijuana startups raised $116.8 billion in 2019. Many called this “The Green Rush”.
But in just half a decade the cannabis market has become saturated. The easing of restrictions made creating a new cannabis product much easier and thus the market has become noisy with many competing businesses, each trying to carve out their niche consumer. With a crowded cannabis market, investors have started looking towards another previously taboo substance that’s in the midst of a startup renaissance—the psychedelic mushroom. Are we entering a new wave of the “Shroom Boom?”
Just as medical marijuana laws were the first sign of an upcoming revolution in cannabis, psilocybin is experiencing a shifts psychedelics and especially psychedelic therapeutics gain acceptance and momentum. Denver, Santa Cruz and Oakland have all decriminalized psilocybin and in 2020 New York City became the first city to have a legislator introduce a decriminalization bill, rather than an activist group.
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