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.
