Marijuana Business Factbook 2019

15 © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. National Trends | Chapter 1 MJBIZDAILY.COM Week 40 represents activity through late September and early October. During September 2019, the number of raises was up over the same month in 2018, but the average size and total raised were down year-over-year. Throughout 2019, cultivation and retail have been the driving sectors behind capital raises and mergers and acquisitions. Because the industry has experienced a period of rapid overinvestment, we’re starting to see a slowing of investment growth. This is a normal, healthy investment cycle that will help separate out the weaker competition and allow stronger companies to flourish. CHART 1.12: Cannabis Companies’ Access To Bank Accounts & Average Monthly Cost For Banking Services Source: 2019 Marijuana Business Factbook © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Cannabis Companies' Access To Bank Accounts & Average Monthly Cost For Banking Services Plant-Touching Businesses $502 Ancillary Businesses $193 Ancillary Businesses Plant-Touching Businesses 2016 2017 2018 2019 2016 2017 2018 2019 51% 94% 88% 90% 30% 69% 74% 76% Average Monthly Cost For Banking Services By Company Type Percentage Of Cannabis Businesses With Access To Bank Accounts By Company Type & Year l i i The percentage of plant-touching companies with bank accounts has continued to rise, with nearly three-quarters of survey respondents able to access some form of banking service. Many of these businesses, however, have very rudimentary banking services and still don’t have access to merchant accounts to process electronic payments or the ability to get financing for equipment and commercial real estate ― services and products that are readily available to businesses in the traditional economy. The chart above also doesn’t reflect the amount of time and effort that many business owners have spent finding a bank to work with, only to have their account suddenly closed with little to no explanation as to why.