In the US, cannabis startups are facing numerous regulatory and social challenges, which is hindering growth within the community. Without full support from the government, such prospective businesses are left to look elsewhere, possibly to a region or country that recognizes the potential that marijuana has on mainstream markets.

That’s why a handful of cannabis startups are heading to Israel, or “the medical marijuana research capital” (a term coined by CNN medical correspondent Dr. Sanjay Gupta). There individuals can find cannabis slowly transitioning into the country’s healthcare system. In the Sheba Medical Center, the largest hospital in Israel, cancer patients have access to a hospital-installed vaporizer, where they can inhale the green herb during treatment. Catering to the supply of medical grade marijuana are eight large growing operations in the area, including Tikun Olam.

Government-Backed Expansion

To meet the increasing demand for the drug, the Israeli government is fueling research initiatives by providing necessary infrastructure and funding to allow groups to test levels of CBD and THC in federal labs. “Israeli growers have agreements with companies in USA, Canada, Czech Republic and Australia. Israel has the oldest and largest regulated medical cannabis programs in the world with over 22,000 registered patients. The Hebrew University holds a rich IP bank of cannabis patents. It is easier to conduct cannabis research and clinical studies in Israel than in any other country in the world,” said Saul Kaye, founder of iCan and CannaTech.

Startups in Israel are supported with a robust medical cannabis program that handles patient registration, research, distribution and permits. As the community grows, so does the guidelines of the program. Recently, a new reform proposed by the country’s ministry of health is aiming to make cannabis available in local, specially licensed pharmacies. The plan would also allow more growers to enter the market, as long as one meets the standards and requirements for a permit. Furthermore, pharmacies would be able to apply for marketing permits to promote the medicinal benefits of marijuana, as they would with other legal narcotics.

Greener Pastures

Israel has what it takes to lead the global medical marijuana market. By turnings its own health ministry into a national narcotics agency, the country has been able to move around strict trafficking laws, such as the UN’s 1961 Single Convention on Narcotic Drugs. As a result, the country has essentially created a low-risk environment for cannabis startups and pharmaceutical brands to thrive.

“The Israeli government has started to understand the economic benefits of cannabis. I believe medical cannabis will be bigger and more profitable than all the arms exports combined,” said Breath of Life CEO Tamir Gedo.