Germany recently reached a new milestone in an area where venture capital meets the growing cannabis industry. This is a turning point for Germany and is the first investment in this sector for a network of private investors that is linked to btov Partners (VC) or Canadian companies like GreenStar Biosciences Corp. (CSE: GSTR).
The cannabis sector in Germany has reached a turning point with the first investment in this sector for a network of private investors that is linked to btov Partners (VC). The other half of the funding comes from one German family agency. The btov partners manage significant assets and have previously invested in technical start-ups such as Blacklane, Data Artisans, DeepL, Facebook, Foodspring, ORCAM, Raisin, SumUp, Volocopter and XING.
Green light for the cultivation of medical marijuana
The green light from the German Federal Institute for Medicines and Medical Devices (BfArM) means that Demecan can produce at least 2,400 kilograms of dried cannabis flowers over the next four years. Demecan also acts as an importer and wholesaler of medicinal marijuana and can therefore cover the entire value chain. As the German government authorised cannabis prescription for therapeutic purposes in 2017, demand exceeded supply.
Jennifer Phan of btov Partners said in her statement: “Demecan is timely in a very attractive market. Germany is now the third largest cannabis market in the world and is on a growth path. We believe that the company has a first-mover advantage in a highly regulated market environment. Especially as it is the only German manufacturing and trading company in the European market.”
Dr. Constantin von der Groeben, co-founder of Demecan, added: “In recent years, we have been working intensively with the market and have reached an important milestone by winning the tendering process. We are now focusing on further growth and the start of production in 2020.”
Germany Follows in the Footsteps of the North American Market
The North American cannabis market demonstrates the potential on offer for Germany. For example the Canadian company GreenStar Biosciences Corp. (CSE: GSTR), which has a management team experienced with on the Canadian cannabis market have seen great success already. Their business strategy focuses on creating a diverse portfolio of most promising cannabis companies in North America.
GreenStar is also an exclusive beneficiary of a new cultivation technology thanks to their joint venture with Progressive Herbs Inc. (Capri). Their patent-pending technology stands behind Cowlitz’s success. What they do is make it possible to produce high quality product in a much shorter time and with less resources than the competition. While other companies deliver three to four harvests per year, Capri’s technology gives them the possibility of producing up to five harvests in a year.
The plans for a legal weed nursery in Breda are becoming more and more serious. The initiators assume that they can participate in a government experiment next year. A breeder finally found.
“We are proceeding at full speed,” says Breda’s lawyer Peter Schouten. Who, together with GP Ronald Roothans and SP politician Joep van Meel, is the driving force behind Project C. “We really don’t think this will work.”
The citizens of Breda want to participate in a government experiment for the legal cultivation of cannabis. The process, as agreed in the coalition agreement is overdue. It is only in the second quarter of 2019 that it becomes clear which ten municipalities will take part. At the beginning of this year, the starting date was met, but according to the government, the municipalities want more clarity about the rules of the experiment. “The draft government decision is there. I see no reason to assume that there will be no more,” said Schouten.