KCBS_740 SAN FRANCISCO (KCBS) — The marijuana industry is budding, and venture capitalists are taking a page from the tech industry as they look to get in on the ground floor.

CEO and Co-founder of venture capital and private equity firm The ArcView Group Troy Dayton forecast that the marijuana industry will grow from a $7.1 billion market this year to a $22.8 billion by 2020.

“That’s a 31-percent annual compound growth rate, and a lot of that starts to happen after 2018, because we’re on the ballot in nine states in November, with either medical, or adult use,” Dayton told KPIX 5.

But, Dayton warned that so-called mom-and-pop investors should be wary of where they invest, as institutional investing firms haven’t yet jumped onto the marijuana-industry train.

“Be very, very careful about the penny-stock hustlers, who are captivating on the excitement,” Dayton said.

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