Marijuana Business Factbook 2019

290 Marijuana Business Factbook 2019 Chapter 7 | Cannabis Business Funding & Investing © 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. CHART 7.16: What Types Of Privately Held Marijuana Businesses Do Investors Prefer? Note: Multiple-choice question; respondent total may be greater than 100%. Source: 2019 Marijuana Business Factbook © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. What Types Of Privately Held Marijuana Businesses Do Investors Prefer? Vertically Integrated Medical & Recreational Retailers Ancillary Technology & Products Companies Cannabis Product Manufacturers Wholesale Cultivators Stand-Alone Medical & Recreational Retailers Ancillary Services Firms 58% 54% 42% 58% 38% 50% 43% 38% 38% 38% 23% 19% Previous Investments Investments Planned For 2019 Percent Of Investors Investors expressed an increased level of interest in cannabis product manufacturers and ancillary technology and products companies in 2019 than in previous years. Cannabis product manufacturers benefit from changing consumer preferences, which are increasingly shifting away from flower to infused products. Within the marijuana industry, ancillary technology and products companies are best suited for scale, as these businesses can easily operate in multiple states and often provide resources that all cannabis firms are required to have, such as seed-to-sale tracking systems. Although investors are slightly less interested in investing in vertically integrated retailers compared to last year, this segment still appeals to more than half the investors. Continued interest likely stems from the revenue potential of these operations as well as their potential for multistate expansion. While an increased portion of wholesale cultivators expressed interest in raising funds in 2019 versus 2018, investors are slightly less interested in investing in wholesale cultivation in 2019 than they were in 2018.