Australia's Medicinal Cannabis Industry Is Being Built Like a Tech Startup
- rytashasekhon
- 3 days ago
- 3 min read
And is that actually bad?
Australia first legalised medicinal cannabis in 2016. What followed afterwards was a startup land grab – everyone wanted (and still wants) a piece of the pie.
Telehealth platforms, vertically integrated dispensaries, and founder-led content machines have carved up one of the fastest-growing healthcare sectors in the country, borrowing the playbooks of Silicon Valley rather than the pharmacy industry.
The result? An industry that evolves fast, builds both recklessly and boldly, and carries some tensions worth examining.
The Startling Growth Numbers
The benchmark story is Montu. Founded in Melbourne in 2019, Montu claimed the top spot on Deloitte's Technology Fast 50 with revenue growth of over 20,000% between 2020 and 2022 – joining a list of previous winners that includes Afterpay, Atlassian, and Menulog. They then made history by winning back-to-back in 2023 with growth approaching 10,000%, the first company to do so in the program's 23-year history.
Perhaps the key driver to Montu's somewhat insane growth was their divergence from merely building a better pharmacy and instead, thinking like a platform: telehealth clinic Alternaleaf, pharmacy dispensing via Leafio, and clinician education through SAGED. Identify a fragmented market, own the whole stack, grow revenue per user across the entire funnel. The classic SF tech startup starter pack.
Founder-Led Content as a Brand Strategy
Founder-led content is not a term that needs defining. After all, it seems everyone (and their dog) is on Instagram and/or TikTok trying to document their journey as an aspirational entrepreneur. But, easykind was ahead of the game. If Montu represents the venture-scale playbook, easykind represents something more interesting: the founder-led, community-driven approach to building trust in a space where conventional advertising is essentially illegal.
Commencing clinically in August 2022, co-founders James and Charlie Fitsioris built one of Australia's largest medicinal cannabis providers from a Melbourne bedroom during COVID. Their solution to the marketing restrictions was the make the founders part of the brand.
Charlie has written openly on LinkedIn about the daily challenge of marketing a regulated healthcare service without being able to discuss the product, the outcomes, or the patients it helps – turning that constraint itself into content.
The Medicinal Cannabis Closed-Loop Clinic Ecosystem: Powerful and Problematic
The most structurally significant development in this sector is the rise of what could be called the closed-loop clinic ecosystem – proprietary platforms where consultation booking, product visibility, ordering pathways, and dispensing options are all housed within a single company's system.
The mechanics are straightforward. Montu owns Alternaleaf (telehealth), Leafio (dispensing), and its own product catalogue. Nectar Brands owns both the telehealth clinic Polln and the cannabis supplier Cultiva. Easykind operates under Green Australia Wholesale, which also supplies cannabis products. When a patient consults, the products they're shown, the ordering flow they follow, and the pharmacy they're sent to are all assets of the same parent company.
These closed systems have enabled genuinely fast, low-friction patient experiences – seamless booking, express delivery, ongoing care portals – that Australia's fragmented public health system couldn't provide. For many patients accessing treatment for chronic pain, anxiety, or insomnia for the first time, this end-to-end experience has been meaningfully better than the alternative.
However, there is a downside.
When the platform that consults you also sells the medicine it prescribes, clinical impartiality becomes structurally compromised. Researchers at the University of Melbourne have raised concerns that this model potentially undermines the Hippocratic oath by removing impartiality from the prescription decision. A 2025 investigation found that many of these platforms conducted consultations lasting under eight minutes – in some cases under four – with no exploration of alternative treatments. The product a patient sees isn't the full market; it's a curated catalogue from the parent company's suppliers. The ordering pathway isn't neutral; it's optimised for conversion.
This is the classic argument used by critics of the closed-loop system – you cannot run a healthcare clinic using startup logic. Why? because patient outcomes and prescription quality can't be A/B tested. For SaaS products, bad UX decisions mean inflated churn. But for medicinal cannabis clinics, they can lead to someone getting the wrong treatment.
The Honest Scorecard
What startup culture has given this sector: speed to market, genuine accessibility for patients who previously had no options, creative brand-building under severe marketing restrictions, equity crowdfunding as a community-ownership tool, and platform thinking that's driven real clinical infrastructure. Cannaponics alone raised nearly $7 million across two Birchal crowdfunding campaigns, turning patients into shareholders.
What it's taken: consultation quality under pressure from growth targets, product neutrality lost to vertical integration, and a regulatory grey zone that the TGA and ODC are beginning to address seriously. A 2025 study found that almost half of the 54 Australian medicinal cannabis websites examined were breaking regulatory guidelines.



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