Raising Cannabis Capital 0129: Orion Partners

Cannabis cultivation facilities are being threatened by increased competition.   Companies within this sector are transitioning away from relying on 'Native Knowledge' to make decisions.   Gro-IQ from Orion Partners applies machine learning and artificial intelligence to multiple points of data to help improve efficiency.  Peter Dougherty speaks to Dan Humiston about their current expansion and opportunities for investors.

 

 Produced By MJBulls Media | Cannabis Podcast Network

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Dan Humiston:
Today's show is brought to you by a former guest, the Hemp Marketplace, which is the first to market most active Hemp community on Raising Cannabis Capital Episode 124. Jolene Lowe and Zeff Pace talk to about their work to expand the Hemp marketplace beyond connecting buyers and sellers. But all parties from farmers processors to end users, enabling the parties to connect, trade and transact to Hemp community with an integrated Hemp platform will provide higher visibility and transparency to make the marketplace more efficient and secure. To learn more about Hemp marketplace and how to invest in their expansion. Go to Hemp dot raw market dot place or listen to Raising Cannabis Capital episode 124.

Peter Dougherty:
So we're a seed stage company. I funded it. The general manager of Amazon is the largest outside investors. We decided to build out of data set and then bring it to the market. So we're just announcing to the market with the first couple of customers and then raising a series, a kind of a traditional tech series, a which is a three million dollar equity raise.

Dan Humiston:
From MJBulls Media. It's the Raising Cannabis Capital show. I'm Dan Humiston. And on today's show, how this team of tech veterans is providing cultivation facilities with the tools they need to make data driven decisions so that they can compete at scale.

Dan Humiston:
Today in Raising Cannabis Capital, we are joined by Peter Daugherty from Orion Partners. Peter, welcome to the show.

Peter Dougherty:
Thanks, Dan. Nice to be here.

Dan Humiston:
Well, I get the sense in here this from a lot of interviews that the cultivation sector is on the verge of a major shakeup. I suspect a lot of it has to do with the capacity is now meeting demands. But I just my gut tells me that this is just the beginning of it. It is like start to change in a lot of the artificial barriers, like crossing state lines and crossing country borders are starting to be removed. This is even become more of an issue in from what little research I've done on your company. Orion Partners has created a product called Grow IQ, which I'm going to talk about a lot today, but essentially it's going to help a lot of these companies avoid this shakeup casualty and help them transition from I love this term tribal knowledge to make decisions. I love that tribal knowledge. He may start off by explaining what you mean by tribal knowledge.

Peter Dougherty:
So what's happening in the market right now is a land grab where the multi-state operators are attempting to set up facilities around the United States and exist. And so I look at the current state of the market as being an Eminem market. That means I've acquired a property. My valuation is based on the fact that I exist and I have some hundred million dollar revenue run rate and I can have a multi-billion dollar market cap by just existing. And tribal knowledge fits into that. From the perspective of managing my production with individuals who came out of either the black market or the new market, and they've been using spreadsheets and logbooks as a means of which to document how they're growing. The reason we're in business is to help the companies that decide that they want to exist after legalization in the United States, which means there's a tidal wave that's going to sweep through the U.S. when legalization happens in the state, borders drop and competition opens. And that competition is going to be based on the efficiency of growing on cost per pound grams per kilowatt hour and grams per light measures that nature. And that's essentially what we're providing to the multi-state operators today that want to start competing at scale now rather than waiting until the state borders go down. And so tribal knowledge is largely the methodology that they're using to manage that production. And what we're saying is you can move from a spreadsheet in a logbook to supervisory or fully automated command control of production by using digital systems that monitor and provide data on how to use command and control as an asset to increase yields and manage costs.

Dan Humiston:
You provide that through a number of different means using sensors throughout the facility. And I think the part that really grabbed me was that you're playing artificial intelligence and machine learning to really add the added horsepower to this product.

Peter Dougherty:
Yeah, I'm glad you use that term. So think of this as another gold rush. What everybody had to decide at the time of the gold rush was, do I invest in the miners? Do I invest in the mule or do I invest in the picks and shovels? And essentially what we're saying is we can provide data picks and information shovels to the miners to help them understand how to mine best. And so the horsepower, quote unquote, in this case is the date using your own data to help understand how to optimize your processes, to increase yields and control costs so you can compete better. Our job is to simplify it to the point where any executive and any operations manager in a facility can use this system for actionable data to provide command and control for your production. All the A. The artificial intelligence machine learning is really great. I don't think anybody really cares about A.I. or AML except to the extent that it applies to their business and helping them manage cost and increase yield. So that's really what our mission is.

Dan Humiston:
And I think under that same heading, a lot of people right now are thinking just this is something they could really use. But I don't want to have to retool my whole operation.

Peter Dougherty:
So we have the whole notion here is there's already been infrastructure that's been built out in this case, either indoor greenhouse that's operational. And what you need to do is insert intelligence into that for command and control. Intelligence means taking the data out of the logbooks and out of the spreadsheets, putting them up into a cloud, presenting it, being an interface to say, here's what's actually happening in your facility, here's how to control it. Better in the example of that is if you have a relative humidity target in your facility and you're trying to manage it to take a number, 63 percent relative humidity and you don't have really enough data to understand what's happening across the room, you don't really have command and control of your RH in your facility. And that's. Basically providing by putting sensors in, pulling the data into the cloud, providing it back, you can actually know what's happening and increase the command and control by decreasing the range of your relative humidity. As if, for instance, the economic effect of that is really important because when you do that, you can increase your yields on a percentage basis anywhere from 5 to 20 percent. So if you're in a 10000 square foot facility, that can mean up to a million dollars a year in increase just by starting to get control of your relative humidity. Wow. So the economics are pretty compelling.

Dan Humiston:
I would say I want to take a quick break to think all of our Raising Cannabis Capital listeners and to remind you that you can support the show by subscribing to MJBulls premium. It's only four dollars and ninety nine cents per month and you gain access to all previous Raising Cannabis Capital episodes as well as all other MJ bills produced podcast and exclusive content, including companies, investor pitch decks, good MJ bills, dot.com and enter promo code raising to get your first month free in the market.

Dan Humiston:
Potential for what you have to offer is almost incomprehensible. I mean, there's just so much opportunity right now for a product like what you have. Yeah.

Peter Dougherty:
So I was an internet company in 1998 and saw what happened when the market moved from a business plan. And I can raise millions of dollars too. I'm out of business because I didn't have a real business. This is very much like 1998. If you're reading Wired magazine or 1999 in terms of looking at a market and saying you need to transition from just existing and being in a mini company to actually knowing how to produce because there is a wall of water coming and you need to decide whether you want to have a digital life preserver or not. And that life preserver is how do you control your business so you can operate at that scale. And all these operators are going to go through. That's what my mission is a company is to make sure that we're an enabler for that outcome. And then we do it at scale with the largest multi-state operators or multi province operators in North America.

Dan Humiston:
Yeah, and that's a big load especially. It's front loaded. What you're about to do, it's very expensive upfront cost to do it. And you do you need to keep people in place. And I know this, that you're in the middle of a series, a round to help you with that process. Can you maybe talk a little bit about. Yeah.

Peter Dougherty:
So what we decided to do was build out the data set first. So we're a seed stage company. I funded it. The general manager from Amazon is the largest outside investors. We decided to build out of data set and then bring it to the market. So we're just announcing to the market with a first couple of customers and then raising a series, a kind of a traditional tech series, a which is a three million dollar equity raise.

Dan Humiston:
Okay. All right. And if people are interested in learning more about how they can participate, how should they present?

Peter Dougherty:
Best thing is email to DOC@Orion Partners.AI

Dan Humiston:
Well, I have Peter's information and the MJBulls Web site. I'll also have Orion partners information on the Web site. So if anybody's interested, you can email Peter directly or you can check out their Web site. Peter, thanks for being on the show today.

Peter Dougherty:
I really appreciate it.

Peter Dougherty:
I'll look forward to talking to you more as we've progressed. Thank you. Dan.

Dan Humiston:
Thanks for listening to Raising Cannabis Capital to learn more about today's guest, to become a guest. Visit our Web site at MJBulls.com. Today's show is produced by MJBulls Media with original music produced in part by Jamie Humiston. I'm Dan Humiston and you've been listening to the Raising Cannabis Capital podcast.

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