January 1, 2018 went down as a watershed day in the cannabis industry as marijuana became legal for recreational use in California.
Californium a is the largest market in the USA with annual sales predicting to reach $5 billion a year.” (Agricultural Issues Center at UC Davis)
Inside The Numbers
Over the past six years the U.S. cannabis startups funding amounts have been tumultuous.
Marijuana startups saw their venture capital totals jump from 2013 to 2014, when dollars raised by companies in the space shot from $9.7 million to $186.7 million.
During the same period of time, recreational marijuana use was legalized in Colorado and Washington state. Unsurprisingly, a full 25 percent of those funding rounds in 2014 were directed toward companies based in Colorado.
The California law legalizing use of recreational marijuana, though enacted on January 1, 2018, was voted into law in late 2016, and could account for the notable increase from the nearly $142 million raised in 2016 to the $225.3 million raised in 2017 with 63 deals.
A Closer Look At Q4 2017
One company that dove head first into the cannabis industry is Colorado-based MJardin. The company raised $20 million in equity financing in late December. MJardin is an operational management company which provides marijuana businesses with assistance in areas ranging from cultivation processes to plant cultivation software and growing materials. It also invests in other marijuana companies .
Another notable investment round in Q4 was a Series A for Denver-based Baker Technologies. The round raised nearly $8 million in funding and was led by cannabis industry-focused firm Poseidon Asset Management. Baker provides a point-of-sale platform designed to help dispensaries connect with customers and manage internal business processes. Customers can set preferences, sign up for email and text alerts, and order through its online portal. CEO Joel Milton said that the money was to be used to enter the California market
San Diego-based startup, Weedguide, also raised $1.7 million in a seed round. The online platform educates consumers about the process of buying marijuana and connects both medical and recreational consumers to dispensaries in their areas. It’s a one-stop-shop, a single destination that provides access and guidance to the entire cannabis experience.
Ohio-based Cannasure Insurance Services raised an undisclosed amount of funding through a private equity round backed by Krauter and Company. It has capitalized on the stigma surrounding the cannabis industry by providing insurance packages to cultivation centers and dispensaries across the United States..
Significant investment from VC is expected to flow into the industry over the next few years!
No comments:
Post a Comment