Marijuana Business Factbook 2019

291 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 7.17: Funding Stages Targeted By Cannabis Investors 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. Funding Stages Targeted By Cannabis Investors Seed Startup/Series A Series B & Beyond 65% 38% 73% 73% 46% 54% Percent Of Investors Previous Investments Investments Planned For 2019 As the cannabis industry expands and matures, established companies with experienced management teams have become much more common than they were just a few short years ago. That’s given investors a great deal of choice when it comes to finding a cannabis company to invest in, and in 2019 many fewer investors are looking to provide seed-stage capital to marijuana businesses. Companies at this stage of investment are typically looking to finance the exploration of an idea rather than improve or optimize a product or service that’s shown initial promise. Instead, investors are choosing to deploy capital in businesses that have made it out of the development stage and are now looking to grow or scale their companies. Though investors may not receive the same amount of equity in a business or as favorable terms on a loan relative to earlier stage investments, returns can be significant and come with less risk ― giving them fewer reasons to invest money in companies that may never make it off the ground.