As CA Moves to Legalize Recreational Weed, Startups Work Hard to Meet the Demand

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California could soon be legalizing marijuana for recreational use.

If Proposition 64 passes this November, recreational marijuana would be legal in the Golden State for individuals aged 21 or older. Taxes would be established and then used to back government-run drug law enforcement, research, and what the architects of Prop 64 call “environmental restoration, cleanup, and enforcement efforts” resulting from illegal marijuana production.

While the initiative allows the state to profit from legalization, helping to boost the militaristic approach to the war on drugs locally, the law could benefit individual users and business owners who commercialize weed. And that’s what the startup community living in the heart of the American tech revolution is celebrating.

According to some reports, Silicon Valley’s class of pot entrepreneurs can’t wait until the votes have been all counted. Instead of sitting and waiting to see how things play out, they are already putting a “signature Valley spin on the age-old practice of selling marijuana,” using what they have learned from the social media explosion in order to prepare the market for consumers dying to use their smartphones to order some ounces of girl scout cookies, Bruce Banner, or perhaps sour diesel.

But they are not stopping there. They are also eager to develop software for growers and dispensaries, helping to “blow open the doors to innovation on the technology side of the cannabis industry,” says Chris Walsh, editorial director of Denver-based Marijuana Business Daily.

While this enthusiasm shows the importance of allowing markets to let consumers make all decisions, it is also a risky business, considering marijuana is still illegal under federal law.

During the upcoming months and even years, many states will be joining the list of states legalizing marijuana, but federal regulators will, most likely, be the last ones to embrace the trend.

Estimates suggest that by 2020, marijuana sales in America will exceed $22 billion. While there’s a huge opportunity for entrepreneurs to join the industry, barriers lifted by the very laws removing the criminal element and regulating the sale and use of weed may make it difficult for those who aren’t already established or well-connected to succeed.

To those who are already in the business or getting ready to cash in, there’s still an issue with the financial aspect of the marijuana industry, considering the fact that most investment firms will steer away from marijuana entrepreneurs due to federal pressure. But companies like Snoop Dogg’s Casa Verde Capital have already thought of that, offering startups the means to get going with their ideas without having to worry about convincing powerful, well-connected men in suits their business plan will work despite all odds.

As more states join the legalization movement, opportunities will be made available. It’s up to those willing to take the risk of going against the feds to embrace them.