“We’re way past ‘back of the envelope,’ now,” said Giadha Aguirre DeCarcer, Founder and CEO of New Frontier Financials. “The marijuana industry is here to stay, and transparency and hard data on which to base future decisions are absolutely necessary for the healthy and successful development of the sector.”
New Frontier is in the business of turning raw data into actionable intelligence for three groups of stakeholders: investors, operators and legislators. In April, at the Marijuana Investor Summit, it debuted three special reports designed to address issues faced by each group. In June, it will begin to accept subscriptions and roll out two additional information products:
- Force20 Cannabis Relationship Manager, a free application designed to support marketing and other needs of cultivators, wholesalers and retailers, and
- The accumulating data feed, on which its analytics are based.
The first three reports, “High Marijuana Sales Taxes Undermine Tax Revenue Potential,” “Small Price Changes Significantly Impact Marijuana Cultivator Revenues” and “Seven Critical Factors Investors Must Consider” were tailored to address questions actually raised by legislators, operators and investors, respectively. The first began with the question of why Colorado tax revenues are so much lower than anticipated. The second focused on the threshold question of how to choose an investment opportunity, and the last on the elasticity of medical and retail markets.
“We could do informative reports, which we decided not to, or really look at what the key stakeholders’ key questions are at any given time, and how we can address those in a time effective and very focused manner,” DeCarcer said.
DeCarcer anticipates that New Frontier Financials will produce one report for each group of stakeholders in each quarter. A future report will focus on the challenge of energy efficiency.
Force20 Cannabis Relationship Manager
The CRM is based on systems operational in the EU with more than 3 million users, including businesses such as BMW and Harley Davidson. It is intended to help operators deal with the tasks of managing customers, contacts, patients, partners, vendors and suppliers. Offering functionality beyond that provided by other POS systems, it could, for example, enable a retailer to target special offers or discounts to customers based on buying history. It could give a medical dispensary the ability to educate patients about new developments in treatment options.
The service will be offered at no charge to the wider universe of marijuana businesses. “We believe that in order to have credibility and trust in the industry, we have to take the first step,” DeCarcer said. “If the industry starts to track its data better, it will only make our job easier once we aggregate it and provide it to the general sector.”
Also in June, New Frontier will make its sources available so that clients can configure data to their own needs. In addition to current and historical cannabis industry information, the feed includes demographic, real estate and law enforcement layers, among others, some or all of which may be important to sector participants in making individualized business decisions. It can be provided in a live, raw or cleaned condition. “We are ultimately a Big Data provider,” DeCarcer said.
New Frontier’s data and analyses will be available via customized dashboards, so that stakeholders can tailor how much and which information they receive, with or without interactive features, according to subscription level.
“Whether it is an industry, a business or a movement, the only way it can succeed is through educated decisions,” DeCarcer added, and those decisions can only be made on the basis of objective, reliable and searchable information, the data gap New Frontier Financials intends to fill.