Since cannabis was legalized for recreational use in Illinois in 2020, Chicago's cannabis industry has been growing rapidly, and one of the city's premier startup hubs and accelerators wants to ensure that momentum continues in 2023 and beyond.
After finding success with its Supply Chain Innovation Lab, 1871 announced it will launch a similar program next year for cannabis. Cannabis Innovation Lab is a tech program designed to bring early-stage startups together with growth companies, corporations and venture capital firms with the goal of solving some of the industry's challenges with technology.
Applications are open until Dec. 16, with info sessions taking place on Dec. 1 and Dec. 13. The lab will begin on Jan. 23.
The lab includes four weeks of immersive programming over the course of four months and culminates with 1871's Cannabis Innovation Summit. The program will launch in partnership with cannabis industry publication Grown In.
The move comes as several dispensaries open their doors across Chicago, including Ivy Hall Damen and the Green Rose Dispensary, as more than 180 licenses have been granted to businesses in the city's cannabis industry.
Helping Chicago's cannabis industry grow
Still, some think more can be done to grow Chicago's cannabis ecosystem.
In 2021, Chicago's cannabis companies raised nearly $266 million in growth capital through nine deals. That pace has slowed in 2022 with $120 million raised through five deals in the first three quarters.
While Chicago has three of the top four companies cultivating cannabis in the U.S. by market capitalization, due to limited license availability, the city has fewer companies than other major metro areas where cannabis cultivation has been legalized, according to a report released this month by World Business Chicago.
Now home to some of the industry's biggest names, including Cresco Labs and Green Thumb Industries, Chicago has 95 cannabis companies compared to 607 in Los Angeles and 417 in Denver.
Nonprofit Chicago accelerator 1871 wants to change that.
Betsy Ziegler, CEO of 1871, described cannabis as a "booming industry" that is also "excitingly Chicago-centered."
"The unique positioning of Chicago as an axis point in cannabis means this is the time and place to launch this lab," she said in a news release.
World Business Chicago expects local programs, including 1871's cannabis-industry innovation lab, and federal policy, such as President Biden's marijuana reform policy, to positively impact business activity moving forward.
