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Many VCs don't invest in these spaces because they are lumped together under the "vice" category. Does that make sense? Anna, let's explore.
Is cannabis similar to coffee, wine and spirits? Emily Paxhia made an argument about the cannabis investor survey on a Twitter Space hosted by TechCrunch+.
Despite regulatory hurdles, these 4 US cannabis investors are planting seeds for tomorrow
Paxhia argued that marijuana-derived products have more to do with wellbeing than they do with the sin category.
Porn, gambling, alcohol and tobacco are some of the business categories that venture capitalists can't invest in. When I was researching raising money for sex tech companies, I found out that the veto comes from the fund's limited partners.
It's understandable why investors wouldn't put their money in businesses that they're known for. There is a fine line between moral stances and stigma.
I don't identify with the word "vice" at all, according to Andrea Barrica. O.school is a media platform for sexual well-being.
It is important to remember that cannabis isn't just about highs. Medical cannabis has the most traction in Europe, according to investors. The perspective of health benefits is what drives many entrepreneurs.
This is much more than drugs and fun, and it was taught to me by a deep dive into psychedelics. Easy jokes feel out of place in this space, with investors sometimes getting into this space after personal journeys with depression or burnout, and founders hoping to make a dent on the global mental health crisis.
Psychedelics startups are on a long journey to consumer markets, but these 5 VCs are taking the ride
The vice clause only applies to certain types of investors. The fund that is handling your pension may pass on cannabis investments. The returns from these potentially lucrative bets will be concentrated in the hands of the already-wealthy.
Paxhia said that some fund managers are also investing as individuals. For arbitrary reasons, fiduciary are missing out on the returns. What is legal is not always moral.
The tobacco, nicotine, and alcohol industries are keeping a close eye on cannabis and whether it might change their consumption habits. The shift could be a net negative for society. Maybe not. There is research going on to use nonhallucinogenic derivatives to treat opiate addiction. Is this a vice with overdose deaths involving drugs? I don't think so. Do you?
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