RE: Barrier to entry19 Feb 2021 22:23
FFWD Definitely not getting involved with hemp extraction (Socati)
Why?
Hemp extracts are basically commoditised now. Cheap to grow, extract and buy. Price drops and it’s a race to the bottom.
Cannabis not so simple and so strain oriented there’s some actual IP around it.
Consistently being able to deliver the same product at scale in cannabis is not easy. Hemp all become extracted material so almost anyone can do it
Socati isn’t particularly valuable despite doing a reasonable revenue. Many, many companies in the US do the same thing. Socati does have some technology that gives them an edge but I would really hate to be a hemp producer, it’s a pretty low return game.