- he Rootz Research founder told Insider that he started the company with three Wharton professors.
- One professor told Insider that the founder had “grossly misrepresented” his role.
- The cannabis industry has had its share of deceptive founders and failed startups. Can Rootz plot a different path?
opportunities in cannabis Huge.
The cultivation and sale of marijuana has been set It became a $100 billion industry in the US by the end of the decade According to investment bank Cowen, investors have poured billions into companies they are betting it will dominate.
Data and analytics that support what cannabis consumers will buy and what products brands should offer It can be a true corporate treasure trove. Additionally, since cannabis is not federally legal in the United States, most organizations cannot invest in companies that grow or sell it, making these data startups attractive to investors who want to bet on cannabis without investing in the plant itself.
Rootz Research, a cannabis analytics startup that says it has a proprietary data set that will forever change the industry, is hoping to capitalize on this green rush. But it is already in a fragile situation – the company is embroiled in an internal struggle between its “founders”, and has not yet received funding.
For every startup success story, there is one that disappoints investors, clamps down on employees, and fails to deliver on promises. In the hot new cannabis industry, the stakes are higher, with stiff competition, rapidly changing regulations, and a lot of money at stake.
Some startups, such as EazeThey corrected course by focusing on their business model. Others, such as the media startup Civilization, They were forced to closeIts founders were forced out by investors.
Rootz CEO Eric Spitz is a serial entrepreneur — he started his first company in 1996 — who has been involved in everything from the cannabis industry to the bankruptcy of the Orange County Register.
But it’s unclear if he can lead Rootz to success in the tough cannabis industry, given his checkered entrepreneurial past.