Cannabis Software program Stack: Who Leads the Advisory Software program Sector?

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What does the Advisory sector of the cannabis computer software industry appear like, and which business is the industry leader in 2020? Cannabiz Media dove into the information in the Cannabiz Media License Database and shared the answers to these inquiries and additional in the Cannabis Software program Stack report final month.

3 weeks ago, I launched a new series of articles exactly where I’m sharing additional of the particulars from that report and diving into what the cannabis computer software stack and license chance appear like primarily based on each and every computer software sector. So far I’ve covered the Back Workplace , Activity and Transactional sectors.

In our final installment, I’ll take yet another close appear at the report information and see what the Cannabiz Media analysis group discovered about the Advisory sector.

Defining the License Chance in Every State

The Cannabiz Media group discovered 332 exclusive corporations that connect to METRC or Leaf Information Solutions in Washington, and working with the Cannabiz Media License Database, we determined how several licenses they can connect to in these states (i.e., the “license opportunity” or possible addressable industry in a state).

To identify this license chance, we added Active, Pending, and Applied licenses for the proper activity. For instance, to come up with the license chance for point-of-sale computer software, we incorporated Active, Pending, and Applied dispensaries and retailers.

The Advisory Sector is comprised of 60 corporations. These corporations are involved in analytics and consulting. In some techniques, this is the capstone group as they enable license holders fully grasp the information generated by all the other sectors.

Market Map

Advisory

There have been two sorts of corporations that match into our Advisory sector: Analytics and Consultants.

The analytics corporations represent some familiar names like BDSA (BDS Analytics), Cannabis Large Information, and Headset. They present insights to a license holder and use METRC/LDS information as an input.

Consultants, from our evaluation, are focused on assisting license holders integrate or connect with METRC or to create computer software and applications.

  • We identified 60 corporations in the Advisory sector.
  • They make 116 connections to the 15 states.
  • 30 of the 60 (50%) connect in California.

cannabis software advisory sector leaderboard

There are several corporations operating in this space, and as of this report’s writing, a fair quantity seemed to be going offline. Each Virtugro and Jade LLC are analytics firms that have inoperable internet sites, therefore, NCS moved into the fifth slot.

Analytics

Fifteen corporations have been identified as delivering Analytics. These in the category connected from 1 to 11 states. California was the most well-liked state with ten connections and Colorado is suitable behind with nine. Oregon is a distant third with 4.

As markets mature and bring on additional licenses – and for that reason, additional data– we may possibly see these corporations branch out to states like Michigan and Massachusetts for instance.

For license chance, we cast a wide net given that the reports and evaluation can have implications for the complete provide chain.

It is also significant to note that these firms do not necessarily require to have access to METRC or LDS as they can get the information and facts they require from their clientele straight. Headset and BDSA report on a wide wide variety of markets and have clientele nationwide.

Consultants

The Consultant category is a massive 1 and covers corporations that may possibly enable license holders connect to METRC or design and style and create computer software. In our evaluation, we discovered enterprises that are sole practitioners operating in 1 state all the way up to a national firm with a footprint in ten states. Only ten of the 45 have been in additional than 1 state.

Fifteen of the 45 vendors are headquartered in California with seven from Michigan and 5 each and every from Washington and Oregon. California (20) is the state that most firms are operating in with Oregon (16) a close second.

Why This Data Matters

The information and facts in our report is beneficial for a wide variety of stakeholders in the cannabis economy:

  • Regulators can achieve insight into the size and scope of the computer software landscape and study about several of the corporations they may possibly be functioning with.
  • Current vendors can use the information and facts for each competitive and enterprise intelligence – and to obtain future partners and acquisition candidates.
  • Investors can use it as a roster of possible acquisitions or partners for their portfolio corporations.

Current license holders can use it to gauge the footprint of computer software vendors. With this information, they can see which corporations are 1-state-wonders.

What’s Subsequent?

This wraps up our evaluation of the computer software stack but the group is reviewing the information for our third Point-of-Sale Software program report. We are calling and surveying dispensaries nationwide to obtain out who they’re working with as their vendor, no matter whether they’ve switched, and who they’ve selected as their CRM vendor.

Cannabiz Media prospects can keep up-to-date on these suppliers and other new licenses by means of our newsletters, alerts, and reports modules. Subscribe to our newsletter to acquire these weekly reports delivered to your inbox. Or you can schedule a demo for additional information and facts on how to access the Cannabiz Media License Database oneself to dive additional into this information and additional.

Ed Keating

Ed Keating is a co-founder and Chief Information Officer of Cannabiz Media and oversees our information analysis and government relations efforts. He has spent his complete profession functioning with and advising information and facts corporations in the compliance space. Ed has overseen complicated multijurisdictional solution lines in the securities, corporate, UCC, security, environmental and human resource markets and focuses on workflow merchandise more than the final twenty 5 years. Through that time he has worked for each startup and established information and facts corporations exactly where he has led advertising, solution management and sales organizations. These corporations include things like Wolters Kluwer/Commerce Clearing Home, CT Corporation, EDGAR On the net and Small business &amp Legal Reports. At Cannabiz Media Ed enjoys the challenge of functioning with regulators across the globe as he and his group collect corporate, economic, and license information and facts to track the folks, merchandise and enterprises in the cannabis economy. Ed graduated from Hamilton College and received his MBA from the Kellogg College at Northwestern University.

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