With the the $1.4 billion legal marijuana market expected to grow to $10.2 billion in the next five years, entrepreneurs and venture capitalists alike are climbing into the newly formalised weed economy. No more the breeding grounds of syndicates and criminals, astute businessmen aim to capitalise on the “high-tech” weed industry flourishing in US states like California and Colorado.

As the CEO of WeedMaps, 29-year-old Justin Hartfield is a poster boy for contemporary weed entrepreneurs. WeedMaps generates $25 million a year, not from selling or growing weed, but by providing a technology service to the industry. Having spotted another opening in the market, Hartfield recently launched Emerald Ocean Capital, a venture capital firm that aims “to invest in the technology and life science sectors” of the emerging legal cannabis market. Another recently-launched private equity fund is the High Times Growth Fund, also trying to get a slice of the action.

If you take into account the trouble the growers and sellers are having to bank the money they make legally, you can expect to hear more about these software companies that are on the fringe of the weed markets in the near future.

[Source : FastCoExist]