2017 vs 2018
This year was a turning point for the marijuana business. Cannabis-related companies have raised almost $ 13.8 billion in funding, compared with just $ 3.5 billion in 2017, according to Viridian Capital Advisors, a financial and strategic consulting firm for the cannabis industry. Growth and increased investment in marijuana business over the past 12 months are due to legislative changes both at national level in Canada and at US level.
Usage was legalized to new states such as Michigan, Oklahoma and Utah. Increasing public support for legalization has given investors more confidence to support industry companies and has attracted large players in the beverage and tobacco industry to look for opportunities to produce cannabis-based products. Perhaps the most noticeable trend in the cannabis industry in 2018 is the entry of large alcohol and cigarette companies on the market.
Some of them
Beer maker Corona Constellation Brands has made $ 4 billion in Canopy Growth. Denver Brewery Molson Coors meanwhile announced a joint venture with The Hydropothecary Corporation, a Canadian cannabis manufacturer. And the maker of Marlboro Altria announced it would invest $ 1.8 billion in the Toronto-based Cronos Group.
2019 – the year of proof
Canadian marijuana companies that have already received large investments will have to report results in the new market early next year if they are hoping to be able to raise even more funding in the future. In the US, where marijuana remains illegal at a federal level, many companies trying to operate on more than one of the isolated US markets where marijuana is legalized have been forced to raise funds this year to duplicate their facilities in new states or to acquire smaller businesses already established in the new region. For that reason, major operators in several states such as MedMen, Green Thumb, Cresco, Palliatech, Columbia Care, who have already built their businesses in multiple markets, receive a large share of the funding in the sector, which reaches $ 100 million.