German Startups Look to Marijuana Legalization as the Next Big Wave

Just like in different economies of different nations across the world, the German startup scene looks set to fully cash-in on the benefits cannabis has to offer. With increased political attention and a booming startup scene, everything looks set for the cannabis industry in Germany to benefit all players. Germany has also seen an increase in demand for recreational marijuana which means more people are becoming open to cannabis consumption; great news for cannabis businesses. Just how prepared is the German startup scene for cannabis? Read on as we take a closer look into cannabis in Germany.

You would think that after Germany voted no to recreational cannabis legalization in 2020 that the marijuana momentum would have slowed down, but that is just not that case.

The German startup scene during cannabis prohibition

Much of the efforts that were applied towards the prohibition of cannabis and maintaining the status quo was costly and unnecessarily tough on everyone involved. Dirk Behrendt, a representative of the Greens Party stated that the ban was counterproductive and unnecessarily burdensome on the judiciary. The stance also took its toll on the executive arm of the government as well especially the police. An estimate of €40 is the cost implication on the police force for confiscating a gram of cannabis.

These factors paint a good picture as to why the German authorities decided to go the way of relaxing restrictions on cannabis. In the wake of the relaxation, a backlash on the authorities came as some felt they bowed to pressure and attracted drug dealers to the locality. However, this is not the true nature of things in the park as regulations there will be the same as anywhere in Berlin.

Cannabis classification in Germany is quite different from what is present in the United States. The FDA classified cannabis as a Schedule I substance, among the list of tightly controlled drugs. In Germany however, the medicinal herb is placed in class III which is a very mild classification. Class I drugs include drugs of dependence like heroin and LSD. Class II drugs include common narcotics and cocaine. This classification allowed room for different standards of possession to be instilled in different regions in Germany. Berlin has the most relaxed regulation as it allows up to 15 grams, Bavaria region has the lowest with 6 grams and Thuringia allows up to 10 grams.

Loopholes in German legalization

The fact that the German startup scene is making room for cannabis is good news for everyone. However, do you know there are still some loopholes around their legalization that leave much to desire? The figures detailed above for regions in Germany and their limit for possession pertains to personal consumption and handling. Unfortunately, this law is very hard on cannabis sellers and cultivators of medicinal herb. Therefore it renders many activities needed to make the cannabis products available illegal. However, it should be noted that the interpretation of these laws still depends on the region where such events occur and these regions differ in severity towards such offenses.

The majority of cannabis businesses and their activities in the country have gone unnoticed in recent years. This is largely due to the fact that the attention of law enforcement has been diverted to other places. Primarily, the attention of the law enforcement agencies has been towards reducing the rise in cocaine activities in the region. The region now has more high-quality cocaine than it has ever had in recent history, and law enforcement agencies have their hands full with that. This has allowed the incidence of arrests on cannabis issues to reduce immensely except in grim cases when the culprit is found with a large quantity of the product.

How to get a good bud in Germany

The space to find cannabis in Germany particularly Berlin is closely knit between sites that help users connect with sources. Reddit for example helps users to gain access to sources and common locations for pickup such as Hasenheide and Gorlitzer Park. The site can also help incoming tourists with specific contact information of the right people thus making procurement easier. Other examples of sites that help with procurement are 'We Be High' and 'All About Berlin'. They help with information on legality, details of prices, available strains, and best practices to avoid unnecessary attention.

The presence of such well-coordinated systems and resources in Berlin might give the notion that cannabis in Germany is completely legal in all spheres. However, the scenario around cannabis in Germany is not clear cut. An example was a report by Berliner Morges post in November 2017 which stated that the Berlin officials decriminalized cannabis possession in the Gorlitzer park area. This was a total change from the initial zero-tolerance ban on all drugs in Gorlitzer park in 2015. The change after two years shows how much growth cannabis has enjoyed in the area and how this can positively impact cannabis startups in the region.

The benefit of German legalization to startups

The change in policy by the German government after medical marijuana was legalized in 2017 has completely changed the landscape for many cannabis businesses in the country. More entrepreneurs are coming into the industry and a lot of first-timers are building themselves within the confines of the industry. What is happening in Germany is even more special when you consider the fact that the government was always quick to shut down discussions around cannabis legalization in times past.

The legalization of cannabis opens the room for brands like Sanity Group in 2018 to come into the sector and meet the growing demand by the population. Many members of the populace are aware of the medicinal benefits of cannabis and so it's natural that demand rose up after legalization.

It should be noted that the German government has also put necessary regulatory agencies in place to guide cannabis startups along the path of compliance and quality control. This helps to ensure that growth of startups is in line with requirements by the government.

Bottom line

The cannabis situation in Germany is quite similar to that in some areas in Europe. The growth of the cannabis industry in the region is bound to help economic activities and with a fairly supportive government, it's fair to say that the atmosphere is conducive for cannabis startups.