Cannabis Industry Investments Q1 2015-Q1 2019

  • While 2018 saw a blockbuster year (with nearly $14 billion raised) for cannabis investments, 2019 is on pace to blow past that total.
  • According to Bloomberg BI, as of March 22, the 100 public companies tracked in Bloomberg’s cannabis index had generated $3.8 billion, not including private deals or any by public companies outside those 100.
  • Three convergent forces are driving surging investment into the sector:
    • Global expansion of cannabis as more countries legalize, presenting significant opportunity for core infrastructure investments;
    • U.S. legalization of hemp, fueling investment in its diverse applications both domestically and internationally; and
    • Continued expansion of the U.S. market as Michigan builds its adult-use program, and New York, New Jersey, and Pennsylvania – all large population states – each considers legalizing for adult use.
  • With cannabis already emerging as a key debate point for the 2020 U.S. elections, and a host of countries across Africa, Europe, Asia, and Latin America likewise contemplating cannabis legalization, the need for investment capital will grow, keeping the record-shattering deals rolling.