Cyo Ray Nystrom of Meadow: 5 Things I Wish Someone Told Me Before I Started Leading a Cannabis or CBD Business
An Interview With Candice Georgiadis
Even though cannabis might be legal in your state, it is still considered a vice industry. Do not expect to have the same access to banking, marketing or advertising services, technology, or payment processors.
As a part of my series about strong women leaders in the cannabis industry, I had the pleasure of interviewing Cyo Nystrom.
After dealing with persistent vaginal health issues her whole life, Cyo began making her own proactive vaginal health products at age 23. In 2015, she started as the head of sales at Meadow — a Y Combinator backed company building software for the California Cannabis industry — where she learned about the medicinal benefits of the cannabis plant (specifically for vaginal health and sexual wellness purposes).
Her involvement in the industry is deeply personal, as her father was incarcerated for nonviolent cannabis crimes during her childhood. Resounding support from her earliest product testers inspired Cyo to bring in childhood friend, Rachel Washtien, to create a line of proactive, plant-based intimate health products with a goal of revolutionizing the feminine health aisle one product at a time.
Thank you so much for doing this with us! Can you share the most interesting story that happened to you since you began leading your company? Can you tell us what lesson you learned from that?
In 2018, Quim was featured on an episode of VICELAND TV’s show Slutever. This exposure was huge for our business and — as it turns out — for me personally as well. After the show aired we received an email to our customer support line simply saying, “I’m so happy for you and I couldn’t be more proud.” That was the subject line, with no body text. I have a background in sales and consider myself to be pretty adept at sleuthing on the internet so I was confident that I could figure out who sent this kind message with only their email address as a clue. It turned out to be my father, whom I’d never met. I was raised by a single mom and my father was incarcerated for nonviolent cannabis crimes for the majority of my childhood. Turns out Viceland was his favorite TV network and he recognized my name when he saw me on the television. I ended up meeting him for the first time a few weeks later, which was a truly life changing experience. I’m so grateful that he reached out after seeing the show because he died shortly after we met. This experience reminded me that timing is everything. Also, when things get tough at Quim — which is par for the course at any start up, it’s reassuring to remember all the amazing things that have happened in my life because Rachel and I decided to start this business, including meeting my father.
Do you have a funny story about how someone you knew reacted when they first heard you were getting into the cannabis industry?
Not really. I was pretty vocal about both my interest in the cannabis industry and the fact that I consumed cannabis. Growing up in the bay area, I really didn’t feel like there was much of a stigma, which made my entry into the cannabis industry easier than some. I do know of many folks who had a much harder time coming out about their cannabis use, and I’m grateful to have always had the support of my friends, family and community.
None of us are able to achieve success without some help along the way. Is there a particular person who you are grateful towards who helped get you to where you are? Can you share a story?
There would simply be no Quim without my co-pilot and business partner, Rachel Washtien. I had been making vaginal health products for years and probably still would be but she’s the reason those home brewed topicals can now be found in Urban Outfitters and Madewell and so many other shops across the world. She has the most impressive work ethic of anyone I know and her stamina is unmatched. We are so different in our skill sets and I couldn’t think of a better person to run Quim with.
Are you working on any new or exciting projects now? How do you think that will help people?
Yes! We’re working on launching a number of exciting new products this year and we’re also bringing on a notable new partner who will accelerate our brand awareness in key demographics. We also JUST launched the travel-size version of our Happy Clam Everyday Oil and Smooth Operator Intimate Serum — the perfect on-the-go companion for summer!
According to this report in Entrepreneur, less than 25 percent of cannabis businesses are run by women. In your opinion or experience, what 3 things can be done by a)individuals b)companies and/or c) society to support greater gender parity moving forward?
I think as a society we can do a better job at raising women with a higher appetite for risk and better self-confidence. I think those are qualities we do a better job at fostering in young boys and I think those are two qualities that are very helpful to have in your toolkit if you’re going to start your own business.
You are a “Cannabis Insider”. If you had to advise someone about 5 non intuitive things one should know to succeed in the cannabis industry, what would you say? Can you please give a story or an example for each.
I actually think that many of my recommendations on how to succeed in the industry are pretty intuitive, but here are a few things I think are really important to understand –
- Even though cannabis is legal for adult consumption in many states (CA, NV, CO, OR, WA, etc), that doesn’t mean you can sell your products across state lines. I can’t tell you how many many prospective investors have encouraged us to sell our THC products in other states without understanding the implications of that suggestion. For that to be feasible — and to be clear, it’s something we’re planning on doing eventually — we’d need to either set up a licensed manufacturing/distribution/sales operation in that state which takes a huge influx of capital or negotiate a licensing deal with a vertically integrated MSO (multi-state operator).
- THC and CBD are derived from the same plant but in many states dispensaries are not legally allowed to sell products hemp-derived CBD products or products w/o any amount of THC in them. Same goes for manufacturing. This varies state to state — another reason why its so important to understand the regulations in the state or states you are operating in — but in California a business that manufactures THC products CANNOT legally manufacture products without THC or hemp derived CBD products. This means if you plan to sell both THC and THC-free products, you’ll need separate manufacturers, distributors, retailers, and potentially even websites, social media handles, and business entities. It’s a lot more complicated and less intuitive than other industries which can make it more difficult to expand, fundraise, and even survive.
- Even though cannabis might be legal in your state, it is still considered a vice industry. Do not expect to have the same access to banking, marketing or advertising services, technology, or payment processors.
Can you share 3 things that most excite you about the cannabis industry?
- Scientific backed research to illustrate the broad spectrum of medicinal uses for the cannabis plant.
- National legislation and interstate transportation.
- The fact that when states legalize cannabis they see a decrease in opiate related deaths.
Can you share 3 things that most concern you about the industry? If you had the ability to implement 3 ways to reform or improve the industry, what would you suggest?
- Outsiders regulating the industry w/o out a comprehensive understanding of the industry
- Insanely high taxes stymying growth in the market and pushing people to the black market
- Black and brown people who felt the brunt of the war on drugs being locked out of the growth opportunities of the industry.
What are your thoughts about federal legalization of cannabis? If you could speak to your Senator, what would be your most persuasive argument regarding why they should or should not pursue federal legalization?
I think it needs to happen and it needs to be done right by people with a deep understanding of the industry dynamics.
Cyo Ray Nystrom of Meadow: 5 Things I Wish Someone Told Me Before I Started Leading a Cannabis or… was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.