Many of folks who enjoy consuming marijuana by vaporizing it have heard of Pax vaporizers. The manufacturer of popular vaporizers from San Francisco, Pax Labs, announced $46.7 million in new funding, which is considered a sign of investor confidence not only in the booming vaporizer market but also in the marijuana industry. Not long ago, it was a marginalized industry that no one wanted to have anything to do with.
The largest investment in a vaping technology
The maker of Pax and JUUL vaporizers is currently selling its products in the U.S. and Canada only. The company will use the investment to expand its technology into other spaces as well as expand its current products overseas. This round of investment was led by Fidelity Management & Research Company and Sivia Capital. Because of prohibitions that many venture capital firms have on investing in “sin” products like tobacco, illegal drugs, alcohol and gambling, Pax Technologies has received very little funding in years prior to this one. Nevertheless, that hasn’t stopped this eight-year-old company to sell more than 500,000 units over the past two years, growing more than 200 percent. “Historically, it’s strange to hear that in the Silicon Valley, right?” CEO James Monsees said. “We sell products that people actually pay for. It’s crazy, right?” While Monsees pointed out carefully that the company’s products are designed for using only legal substances, he refused to speak about the fact that they have become a favorite among cannabis users who prefer to “vape” their weed.
Cannabis industry could rapidly double in size
The marijuana market has boomed 74 percent over the past year to $2.7 billion, with California accounting for nearly half of that number. While California still has only medical marijuana legalized, that is expected to change soon – at least one legalization measure should be on the next year’s ballot. Meaning that, if recreational pot was legalized in California next year, the entire industry could double in size. Slowly, but surely, more and more investors from the mainstream are turning to the cannabis industry. In January, the Founders Fund, an investment firm started by PayPal co-founder Peter Thiel, joined a $75 million round of funding in Privateer Holdings, which has several marijuana company investments.
Is joint becoming obsolete?
It is not yet sure that vaping is indeed healthier than smoking. We do know that combustion of any plant releases toxic compounds and irritants and that smoking a joint without a filter deposits more tar in the lungs than an equal amount of tobacco. That being said, vaporizers are able to circumvent these risks by heating marijuana to a thermal sweet spot that releases active compounds without creating smoke, which is why they’re considered to be healthier than joints, but it remains unknown if this is the truth or not. Whatever the case may be, the fact remains that people want to taste the cannabis in a way that is less harmful than smoking and as far as they’re concerned, vaping provides them with such luxury. Besides, they also want to have the latest cool gadgets in their pocket.