Despite the burgeoning cannabis industry, female founders encounter substantial obstacles in building their businesses. Just 8% of CEOs are women in an industry where they comprise 48% of the consumers. Jenna Goldring, cofounder of The High Confectionary, identified an unmet need in the cannabis and hemp market and is leveraging her experience in digital marketing to sell directly to consumers and through state-regulated dispensaries. Her startup addresses the need to control the amount of THC to achieve the desired therapeutic effect with low-dose gummies that give consumers control over their intake, making for better experiences.
Goldring’s journey epitomizes the challenges female founders face in the cannabis space: accessing funding predominantly from male investors, contending with a male-dominated culture, balancing business with family responsibilities, and overcoming lingering societal stigmas. Her success in raising $1 million to pioneer a product tailored to consumers’ nuanced needs highlights the different perspectives women bring to an industry that remains predominantly male-driven.
Finding A White Space In The Cannabis and Hemp Market
The “grass ceiling” reflects the similar factors women in other fields face—only 8% of CEOs are women—although having women in leadership positions results in higher profitability and a better understanding of consumer decisions.
Despite these obstacles, female founders like Goldring are breaking through. Before launching The High Confectionary, Goldring gained experience working for multiple successful tech startups. As the VP of media sales at Fyllo—a company specializing in advertising for highly regulated brands—she saw a gap in the cannabis market and decided to take matters into her own hands.
Goldring’s personal experience with cannabis as a tool for improving sleep and reducing anxiety drove her to create a product line that caters specifically to people with lower tolerances. Unlike most edibles on the market, The High Confectionary gummies contain just 1 mg of THC per piece compared to the typical 5-10 mg, allowing consumers to have complete control over their dosage. You can indulge in a slice of cake rather than gorging on the whole thing.
Ingredients are vegan and organic. Real fruit flavors and natural colors are used; each gummy is only five calories. It took Goldring a year to perfect the recipe and find the right manufacturing partners. The benefits include reduced exposure to harmful pesticides, higher nutrient content, the absence of artificial ingredients, and better taste.
Overcoming Challenges In the Cannabis/Hemp Sectorhe cannabis industry poses significant challenges for female founders, distinct from their male counterparts.
Access to funding: Companies with only female founders often face more difficulty accessing capital than exclusively male-founded or mixed-gender-founded companies. While there has been a small but steady rise in the share of solely female-founder deals—currently 7.0%—the share of dollars has declined to 2.0% from a height of 2.7% set in 2017, according to Pitchbook’s female founder dashboard as of October 31, 2023. Goldring raised the first million dollars to fund the startup of The High Confectionary from friends, family, and angel investors.
When investing, women angel investors are much more likely to consider the gender of the founders. Yet, Goldring’s cap table is composed mostly of men. Fewer women invest in startups, and they may be even more hesitant to invest in the cannabis industry than other industries due to negative perceptions and stigmas, lack of female representation as professionals in the industry, limited information and education, and regulatory concerns.
Gender stereotyping: The cannabis industry, like many others, has traditionally been male-dominated.
Gender affects how cannabis and hemp are consumed, their physical, mental and social impacts, and how men and women respond to treatment, health promotion, and policies. Microdosing cannabis, such as The High Contectionary does, allows individuals to personalize their experience by consuming low doses that can mitigate adverse effects, enhance functionality, and find the optimal dosage.
“It’s a bit of a boys club, both on the fundraising and operating sides,” said Goldring.
The adult-use market is brimming with personalities who may lack professional experience and, unfortunately, this often translates into how they treat women. One female founder in the cannabis industry shared that her transition to the hemp sector has been refreshing, noting a higher level of professionalism in an Arcview and National Cannabis Industry Association (NCIA) report.
“There are many cool and innovative women-led brands, and we support each other in this space, including partnering,” said Goldring.
Regulatory hurdles: The recent legalization of recreational cannabis in some states has brought about change in the industry. However, changing laws and regulations pose challenges for entrepreneurs. Despite progress, federal illegality still overshadows the industry as many financiers maintain their distance.
Navigating complex regulatory frameworks that vary from state to state is a significant challenge in the cannabis industry.
Female founders may face additional hurdles due to potential biases in the industry that may not equally accommodate or consider their perspectives.
The High Confectionary has two sides to the business:
- The cannabis side of the business can only be sold in state-regulated dispensaries.
- The hemp side of the business can be sold directly to consumers through its website.
The products are virtually the same. How the active ingredients are sourced under the law differ.
Balancing family and business: Women often juggle family responsibilities and entrepreneurial pursuits. Goldring recently had a baby. “Your life changes in ways you can’t even process until the baby arrives,” she exclaimed. “Now, there’s something that takes priority over the business.” She knows it’s hard for all women but feels she can’t fail or even slack off as the founder.
Managing work-life balance can be especially challenging for female founders. “I’m still breastfeeding my child,” said Goldring. When the baby needs to go to the doctor, she takes him. “Men don’t have this challenge.”
Stigma and perception: Despite the growing acceptance and legalization of cannabis, there can still be social stigma attached to the industry. Female founders may face additional challenges in changing perceptions about their involvement in a sector that has historically been viewed negatively.
Many people have had bad experiences with marijuana and never tried it again. “I was so high,” some people told Goldring. “I felt my heart was beating so fast like I was out of control.”
Cutting a gummy in half doesn’t distribute the ingredients evenly. “If you cut a chocolate chip cookie in half, you don’t get the same amount of chips in each half,” explained Goldring. She made each gummy with microdoses of THC so consumers could control the experience.
Women face a unique set of challenges in the male-dominated cannabis/hemp space, but as Goldring shows, you can jump over hurdles. What hurdles are you jumping over?
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