Marijuana Business Factbook 2019

285 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 7.11: Typical Amount Of Funding Operational Cannabis Businesses Are Currently Seeking Source: 2019 Marijuana Business Factbook © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Typical Amount Of Funding Operational Cannabis Businesses Are Currently Seeking Vertically Integrated Medical & Recreational Retailers Stand-Alone Medical Dispensaries & Rec Stores Ancillary Technology & Products Companies Cannabis Product Manufacturers Producers/Processors Ancillary Services Firms Wholesale Cultivators $6,250,000 $2,000,000 $1,000,000 $1,000,000 $750,000 $500,000 $400,000 Median Across all sectors, the median amount of funding sought is $1 million ― down 10% from last year’s median of $1.1 million. While overall funding needs are down slightly from 2018, several categories are seeking higher levels of funding. The median amount sought by vertically integrated retailers ― $6.25 million ― is more than triple what they were looking for a year ago. In addition to the significant capital requirements of launching a vertically integrated retail company, more retailers also are looking at expansion, either into additional states or by widening their footprints within their home markets. Stand-alone retailers are seeking more funding this year, too: The median of $2 million is more than twice the median sought in 2018. Infused product manufacturers are seeking the same median amount this year as last year ― $1 million ― but high capital requirements and multistate expansion opportunities may be fueling these needs as well. Ancillary technology and products companies and ancillary services firms are seeking twice the median amount of these categories last year, $1 million and $500,000, respectively. Although the percentage of wholesale cultivators seeking funding has increased from 2018 to 2019, the median level of funding sought is down 27%, from $550,000 in 2018 to $400,000 in 2019.