Marijuana Business Factbook 2019

277 Cannabis Business Funding & Investing | Chapter 7 © 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. MJBIZDAILY.COM CHART 7.03: Global Cannabis Industry Investments By Sector & Year Source: Viridian Capital Advisors © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Global Cannabis Industry Investments By Sector & Year Cultivation & Retail Investments/M&A Biotech/Pharma Infused Products & Extracts Software/Media Real Estate Agriculture Technology Miscellaneous Ancillary Consulting Services Consumption Devices Hemp $10,365M $1,689M $1,356M $371M $605M $988M $697M $142M $187M $107M $246M $7M $123M $58M $121M $47M $51M $99M $97M $18M $11M $6M 2017 2018 Cultivation and retail significantly outraised other cannabis segments in 2018, pulling in $10.4 billion in deals ― 75% of total funds raised for the year. This segment includes large Canadian license holders, which accounted for several multibillion-dollar deals in 2018. Continued investment in this sector is expected as Canadian companies expand their global footprint and U.S. companies ramp up operations. On a percentage basis, the largest year-over-year change came from the cannabis real estate sector, which raised $246 million in 2018 ― more than 34 times the $7 million raised in 2017. Consumption devices yielded the third-largest year-over-year increase as a segment, raising $97 million, an increase of more than 400% over 2017’s $18 million. Infused products and extracts and companies focused on investments/mergers and acquisitions rounded out the top five fundraising segments for 2018. Growth in consumption devices and infused products and extracts has been fueled by rapidly shifting consumer preferences away from flower and toward edibles, concentrates and vape pens. Analysts expect further growth in this sector as some multistate operators are investing in their own companies to capture that shifting demand and in preparation for Canada allowing infused products, which is expected to occur in early 2020.