For Industry Investment, 2018 Was Terrific But 2019 Looks Even Better
March 31, 2019Consumer Populations Do Not Always Correlate to Frequency of Cannabis Usage
April 7, 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.
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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.
