Business Insider compiled an exclusive list of the top 12 venture-capital firms making deals in the cannabis industry.
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Ever since Colorado legalized cannabis for all adults in 2014, the cannabis industry has blossomed, with a multitude of companies competing to scale up as more states legalize the drug.
With so few institutional investors ready to write checks to cannabis companies — marijuana is still considered a Schedule I drug by the US federal government — the industry has given rise to a number of sector-specific firms that deeply understand the nuances of investing in such a highly regulated and fragmented market.
Last year, the total value of all venture deals in the cannabis space across the globe was just under $378 million, according to analytics firm PitchBook. By the beginning of October, that number nearly doubled, to $643 million. To put that growth in perspective, in 2012, the first year PitchBook had data available, there were only two deals in the cannabis sector — worth just $300,000.
According to some estimates, cannabis may become a $75 billion industry in the next few years.
These cannabis-specific funds mostly raise money from private investors or family offices that may have a higher risk appetite than the average pension fund. They get into top startups before the bigger players begin throwing their weight around, and can quickly adapt to shifting regulations and consumer sentiment.
To get a handle on who’s cutting early-stage deals in the fledgling industry, Business Insider pulled data from PitchBook and reached out to the top venture-capital firms in the industry.
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Source:: Business Insider