Microsoft is partnering up with a cannabis industry focused software company called Kind Financial. Microsoft announced the partnership on Thursday with the company. Kind Financials is known to be one which provides weed growers with seed to sale, and giving them ability to track inventory, navigate through various laws and also enables them to handle any transaction through the software systems of Kind. This is the first major partnership of its kind between a tech company, especially of Microsoft’s stature and the industry of legal marijuana.
Most of the tech giants have been reclusive in involving themselves with cannabis industry, but most of the upcoming startups have been rushing to the industry, which is now legal for both recreational and medicinal purposes in five states.
The marijuana industry’s needs such as the optimization of plant growth and various other logistics, coupled with the ever increasing market potential makes it a suitable partner for the tech industry. Matthew Karnes, the founder of marijuana data company, Green Wave Advisors, said that it seemed like when it pertained to the weed industry, everyone was still in the closet. He also said that it was telling that a company such as Microsoft was engaging with a weed company.
The doubt from most tech companies is the issue of the legal status which is still blurred across the country. The plant is still illegal in most parts of the country, and the federal and state laws have always been on hard on marijuana.
Therefore, most banks do not feel it is wise to invest in the industry. The weed business has different legal standings across the various state lines which are another issue. Another issue is that the laws can also be changed by a simple change in the Presidential administration.
Zach Bogue, a venture capital investor, likened investing in the marijuana industry as the same as investing in the porn industry. He said that definitely there is a lot of money in it, but it was still too risky.
The Microsoft and Kind Financials partnership is believed to have opened doors for the marijuana industry, and many tech companies will be looking to see how this one plays out. Having a worldwide brand name like Microsoft attached to the weed industry will obviously do wonders for the industry. It will definitely catch people’s attention.
