since most of us on ICmag don't have a spare million or ten lying around, seed money is basically venture capital money from outside investors, they are the ones driving the CO and WA markets.
CA is heading to rec legal soon, but all the other states are still "med" legal, and in most cases the med market is very strict about who can participate but if CO and CA are any indication eventually those states will want the tax money and loosen regulation, then the people who had already established small local followings can go legal, but thats a big IF. it all depends on your local state, in WA for example i502 is pretty fucking bad and bans all home growing, same with illinois and new york proposed med laws. the black market will still thrive because they made the med market too strict….
in illinois you need to spend 150k+ in permits up front for a cultivation facility, not even including the costs to set up the damn facility in the first place! 25k non refundable deposits are gonna shut most regular folks right out of the game…then an automatic 100k payment to the state. and you can't pay them with a duffel bag full of vac sealed 20s.
And if the license fees are manageable you have to keep 2 million in escrow. 2 million just sitting there making nothing. Ridiculous rule. The 25k was supposed to be refundable in the original plans as well. I'm assuming summing they want this program dead on arrival.