Cannacurio # 47 – Cannabis Software Stack Summer 2021

Be the first to know when new content like this is available!

Subscribe to our newsletter to receive notifications of new posts, local news and industry insights.

Thanks very much! Your submission has been received!

Oops! There was an error submitting the form.

Cannabiz Media Software Stack Summer Report 2021

introduction

Last summer, Cannabiz Media released its first cannabis software stack report, in which we contrasted government license counts with all companies connecting to METRC and Leaf Data Services in WA. Since compiling this data, we released an update with 43 other companies in November last year. Our The last review in July identified 39 other companies in this area. A subset of the 386 incumbents continued to enter new markets, with 47 of the incumbents adding 88 states.

Most important findings

• 66% of the new additions are in Colorado, California, Oklahoma, and Massachusetts. Colorado led the way with nine companies (23%).
• 33% of these new entrants have connections to Colorado, while 26% are connected to California and / or Oklahoma.
• 12% (47) of existing providers have moved into new states since our last review.

Sectors

We have grouped all of the companies we found into four sectors, as shown in the following market map:

Before we look at the newcomers, the existing providers were also busy during Covid and many were entering new states. In total, these incumbents entered 88 states, with Distru adding 11 and Seed and Beyond adding nine. The following diagram shows the number of newly added states in light green versus the total states in dark green.

The 386 incumbents we researched this summer didn’t stop there. A total of 47 have moved to additional states since the end of last year. We found a total of 88 “relocations” by these companies. By moving, we mean that a company in that state is certified by Leaf Data Systems or METRC.

The state that has moved the most to the state is Oklahoma, which is home to 27 companies. They may have to wait to connect as a lawsuit has been filed delaying the implementation of the METRC rollout.

Back office

This sector includes solutions for complex operations that can be used by different types of licensees. Applications can include ERP, seed-to-sale, compliance, and supply chain / logistics.

We have found seven new companies in this area, bringing the total to 111 providers:

Four of the companies are in the Seed 2 Sale category, while three more are ERP systems. The most popular state for back office businesses is Oklahoma, where four operate.

Activity (79)

These companies provide solutions for farmers, manufacturers, retailers, etc. Applications are point of sale, growth software, delivery and laboratory information management systems.

There are 13 new ones we’ve spotted, five of which were added to the point of sale category and four to the Grow Software category. Appspensary grew up and has entered 12 states. Terrayn is in three states, and everyone else is a “one-state wonder”.

We’re surprised to see companies are still stepping into the point of sale space. It’s ridiculously competitive, and we’re seeing some consolidation as companies like Dutchie and Akerna buy other vendors. Also in our Point of Sale 2020 report we found that three companies control 50% of the market.

Transactional (39)

These solutions revolve around B2B and B2C transactions and include financial institutions, financial compliance, marketplaces and payment processing.

There are five new ones here, bringing the total to 39. The interesting thing to know is that two of the companies are CPAs and both are only affiliated with each other in Michigan.

Advice (81)

This group consists of consultants who can advise companies on technical integration, as well as data analysis firms who provide insights to a license holder and use METRC / LDS data as input. Six new companies came online:

Misc (100)

We have only added eight companies since our last review. Two are licensees and six are Other / Unknown. If anyone can share their insights into these companies, drop me a line.

diploma

The number of companies in the cannabis software stack continued to grow during Covid. The 39 new companies are based in Colorado (9), California (6), Oklahoma (6) and Massachusetts (5). Based on their headquarters, many of these companies are affiliated in Colorado (13), California (10), Oklahoma (10) and Massachusetts (5).

The new business rush supports the general economic observation that many entrepreneurs started businesses during the pandemic.

Cannabiz Media ends our call to collect data for our 2021 Point of Sale report. In the coming months we will have updated the market share as well as some insights into the CRM systems that pharmacies and retailers are using.

Cannacurio is a weekly column from Cannabiz Media with insights from the most comprehensive license data platform. Check out Cannacurio posts and podcasts for the latest updates and information.