NEW YORK: The business of legal weed is entering a new stage, as a broad infrastructure of related services, particularly financial, develops.
Last year former videogame entrepreneur Dooma Wendschuh began soliciting investors for what he viewed as a big idea: distilled marijuana extracts, developed by scientists, that could be used for “edibles,” such as brownies, and vaporizers. Rather than hawking flavors or strains of pot, his company, Ebbu, would aim to deliver consistent feelings, such as “chill” and “giggles.”
Raising funds wasn’t easy, to put it mildly. Wendschuh approached seven investing groups, by his estimate, made hundreds of presentations, and asked more than 450 individuals to put up cash. Four months of grueling effort yielded him $2 million. So far business has been good. Ebbu’s first line of extracts has been flying off the shelves in four Colorado dispensaries since it launched in April. The profit margins are huge: Ebbu makes its extracts for $2 and sells them for $35. “You can make a lot of money in marijuana,” Wendschuh says. “If you make it, it will sell. It’s unreal.”