INSUBCONTINENT EXCLUSIVE:
People are increasingly interested in finding a way to participate in the cannabis industry, and for good reason
It growing like a weed (yes, we said it)
According to a San Francisco-based research company, Grand View Research, the global legal marijuana market is expected to reach $146.4
billion by the end of 2025.
Still, it isn&t easy for potential recruits to know where to look for both temporary and permanent jobs, and it
just as challenging for companies to find candidates who understand their business
Enter Vangst, a now three-year-old, Denver-based startup that just raised $10 million in Series A funding from earlier backers Casa Verde
Capital and Lerer Hippeau to become the go-to recruiting platform for the industry, even while going up against several older entrants,
including Seattle-based Viridian Staffing and Ganjapreneur, in Bellingham, Wash.
Yesterday, we with chatted with the CEO and founder of the
now 70-person company, Karson Humiston, about launching the platform in college, and why she isn&t so worried about the competition
She also shared some interesting stats around how much cannabis jobs pay.
TC: Some people launch startups in college
Not many of them grow them into sustainable companies
How did Vangst get going
KH: I went to St
Lawrence [University] and while there, I&d started a student travel company and compiled a database of students and recent grads — people
who&d gone on trips through the startup or expressed an interest in going on trips
The spring of my senior year, in 2015, I sent an email to all of them asking what jobs they were interested in, and more than 70 percent
said the cannabis industry.
TC: Wow, interesting.
KH: That was my reaction, but living in upstate New York where recreational cannabis isn&t
yet legal, I didn&t know a lot about it
So I took a weekend off from school to go to a trade show in Colorado, where I saw everything from cultivation to extraction to retail to
And when I asked what jobs they were looking to fill, they said, essentially, everything: a director of cultivation, retail dispensary store
They all said it was their top pain point because if they posted on a traditional jobs board — and remember, this was 2015 — the listing
would often get taken down
Meanwhile, there was no industry-specific resource because [marijuana] is federally illegal.
TC: So you dropped the travel startup idea and
Where did you start
KH: First, I rushed back to St
Lawrence and made an inexpensive site on Wix and started connecting people in my database with summer internships
I&d told the companies I&d met with that I could find them employees for $500 and I called this new company Graduana, [with the tagline]
My thought was, I&ll go to Colorado and do Graduana for six months and see where the industry really is.
By the spring of 2016, I realized
that demand far exceeded interns and recent grads and that we needed to find recruiters who know what they&re doing
We brought on recruiters who were just focused on cultivation, for example, and who know the difference between someone who can grow
cannabis in the garage and someone who has done large-scale agricultural growing
They they started pulling in people from the tomato and tulip and big commercial ag who&ve grown [plants] in big state-of-the-art
greenhouses and could bring important skills to the table
We also brought in recruiters to just focus on the retail side of things.
It became this profitable, 25-person, boutique staffing agency
But we also saw an opportunity for on-demand labor, because of the seasonality of the industry
Cannabis grows, then it needs to be trimmed and packaged
.
TC: So it was time for venture capital
KH: When you&re talking about temporary staffing, it really been done manually in this industry, so
we wanted to build a platform that would notify candidates that a certain company needs 20 trimmers and is willing to pay $12 an hour and
where, meanwhile, employers could see that someone has trimmed for 2,000 hours
And each could rate each other
So we needed to hire engineering and a customer success team and legal, and our revenue wasn&t going to cover those costs.
Thankfully, a
founder friend in the space, Ryan Smith of LeafLink, introduced us to Lerer Hippeau when he heard were raising a seed round
We received a warm intro to Casa Verde, too
And both have been amazingly helpful to us.
TC: Are you still doing high-end hiring, too
KH: We are
Revenue from that piece of our business, where we&re helping companies find maybe COOs or a director of cultivation or extraction, more than
doubled last year and continues to be profitable
We get 1,000 resumes some days
We now have 200,000 job candidates on the platform.
TC: Obviously, you&re charging employers different amounts depending on the the type of
Can you share some specifics
KH: Right
On the direct hire side, we take a percentage of their first year salary
On the gig side, a company tells us how much they&d like to pay for gig workers, and there a mark-up on that that we keep.
TC: No matter how
long that person works for your client
KH: It usually for a matter of weeks
If it longer than that, we charge them a buyout fee [to step out of the relationship].
TC: I take it you&re marketing the service to college
students largely.
KH: We market the service through career fairs that we throw in different states, and at trade shows in and out of the
We also spend time going to college campuses
But our acquisition costs have been relatively low
Everyone who gets placed with us is known as an original Vangster and we do Vangster nights, where anyone in our network can bring a friend
and we can help turn them into employees, too.
TC: More states are legalizing recreational cannabis; how are you drumming up workforces in
different places
KH: We have a team now in Denver, in Santa Monica and a small team in Oakland, and as we launch additional cities for
Vangst gigs, we&re hiring managers and people who can do client outreach and candidate vetting and onboarding
We just hired an early employee of Uber, Will Zinsmeister, who helped oversee the launch of cities in Texas for Uber, so we&re excited to
have Will and others thinking through supply-and-demand issues as we launch more widely.
TC: Out of curiosity, how much do cannabis jobs
pay, and how many people work in the industry right now — do you have any idea
KH: I think there more than 160,000 employees across the
cannabis industry right now, and by 2022, the industry is expected to grow to around 340,000 full-time employees.
We did survey 1,500 people
to put together a salary guide and one of the questions we asked was how much of their labor needs are seasonable versus otherwise, and they
said about 30 percent.
As for the salaries, the on-demand jobs are very in line with other industries
When it comes to full-time jobs, outside sales jobs pay on average a salary of $73,000, which is in line with other outside sales jobs
On the higher end, a compliance manager can make $149,000, a director of extraction makes on average $191,000, and a director of cultivation
on the high end can make $250,000.
TC: I think that more than people might have imagined
Who is landing these higher-end jobs other than people with backgrounds in traditional large-scale farming
KH: You&re seeing people
graduating with a degree in botany who&ve maybe worked for a cannabis company for six years and are seen as having very unique experience
