For anyone looking to start a new cannabis farm, processing facility, or dispensary, start-up costs can prove to be very high.
To help defray the high start-up costs of cannabis businesses, a Los Angeles-based company has rolled out a new online marketplace dedicated to the buying and selling of used equipment.
A New Platform to Level the Field
Woman of color-owned Pakaloh on Thursday announced the rollout of Pakaloh’s Marketplace, a new national online platform designed to empower cannabis businesses and professionals and reduce startup costs.
According to the 2019 Marijuana Business Factbook, opening a cannabis store requires at least $300,000 and up to millions of dollars for other related businesses.
In the United States, 84 percent of cannabis businesses are self-funded by their founders, and 22 percent secure funding through a Family and Friends Round.
Pakaloh says that entrepreneurs’ access to personal funding turns on racial lines.
According to a 2016 Federal Reserve Board survey, American median household net worth peaks at approximately $171,000 for Caucasian families, $17,600 for African Americans, $20,700 for Latino, and $64,800 for “Other.”
Pakaloh says it launched its new platform to fight inequality in the cannabis industry.
“The travesty of our industry is that it augments the same injustices that we are now coming to terms with in the U.S.,” says Pakaloh President Rebecca Lee Katz. “Pakaloh imagines an industry where grit and skill alone determine your success. We are investing in individual and collective futures to engineer a diverse and inclusive industry. We are pledged to every community, by promoting sustainable businesses, generational wealth, unionized jobs, and a level playing field for every American.”
Members of the Pakaloh Marketplace can liquidate any used or unused equipment they no longer need by advertising and selling it to other members.
Pakaloh also provides a suite of other services for its members, including exclusive benefits and discounts from financial institutions and other vendors.
Pakaloh facilitates networking through directories, direct messaging, and features for rating and reviewing businesses.
Members have access to Pakaloh’s curated information on activist organizations and member-promoted events on the platform’s live calendar.
Pakaloah says the Marketplace is one of many resources available to members and is the first free business resource for an inclusive marijuana, CBD, and hemp industry.