A few months ago, a startup called Fyllo went from virtual obscurity to one of the most well-known cannabis startups in the country.
Less than a year after it was founded, this marketing tech company raised a stunning $18 million Series A round, led by some of the most prominent VC firms in North America
That was back in September. In the few months since then, this startup has managed to spend well over half of that capital.
Before you start shaking your head… let’s dive into what exactly this company does.
Fyllo is a marketing technology company that helps cannabis brands advertise their products online. Not only is this a bit of a minefield in the targeting sense (imagine an ad for weed going to the wrong Grandma!) – it’s also tricky to comply with ad regulations when you’re pushing something that’s not federally legal yet.
At the same time, the cannabis industry is worth nearly $11 billion right now. And even without federal legalization on the table, that industry is growing.
A growing market in the billions of dollars means a lot of opportunity. And thatis exactly why Fyllo is so successful.
So, back to the $18 million.
Last month, news broke that Fyllo had spent a whopping $10 million to acquire CannaRegs, an online database that provides all state and municipal cannabis rules and regulations.
Fyllo’s team thinks that this acquisition will help Fyllo’s marketers ensure that their large-scale campaigns are compliant wherever they run. This is so incredibly important – and personally, I think gobbling up this small SaaS company was the best move Fyllo could have made (even if it did cost them more than half of their Series A).
My point here is that big things – huge things – are still happening in the cannabis space every single day. It doesn’t matter that federal legalization hasn’t come through yet. It doesn’t even matter that many stock analysts are bearish on the sector as a whole.
What matters is that the companies that are actually out there are making big moves regardless.
That’s not just restricted to privately-held cannabis startups, either. Many of the big public companies are doing well, too.
And if legalization does happen? Cannabis companies could see their revenues increase by 12-fold.
The question on everyone’s mind, then, is what stocks to buy before that happens.
The last time this industry saw a boom, savvy investors banked some pretty incredible wins. One under-the-radar pick would have returned $53,330 for every $1,000 invested.
Another, reacting to countrywide legalization in Canada, would have kicked back $39,130 per each $1,000 invested.
Make no mistake – massive jumps like these could potentially happen again.
And if you’re lucky enough to have the right guidance, you could be one of the many success stories we keep hearing about every single day.
Luckily, we’ve prepared a brand new, all-encompassing guide for cannabis in the new year. It’s called the 2020 Pot Profits Roadmap… and it could just be the most profitable book you’ll ever read.
Until next time,