Cannabis Funding Deals Hit Rough Patch in 2023

October 4, 2023 · Green Market Report

North American marijuana retailers and growers are leading the pack when it comes to raising capital over the past 12 months, but the industry as a whole has hit a very rough financial patch compared to a year ago.

Capital raises overall are down 61.2% year-over-year.

According to the Viridian Capital Advisors Deal Tracker, cannabis companies completed 177 capital fundraising deals for $2.58 billion in the past 12 months, which is down almost two-thirds from the same period in 2021-2022, when the industry raised $6.6 billion, Viridian reported.

Retailers and growers have outperformed their counterparts in other cannabis sectors when it comes to capital fundraising, with 65 completed raises for a total of $1.45 billion since Sept. 29, 2022.

But compared with the year prior, that’s down 49%, from 314 deals for the 12 months ended September 2022. During that period, marijuana shops and cultivators raised $3.4 billion, Viridian found.

By contrast, capital raises in the psychedelics sector over the past year – which came in second only to retail and cultivation in capital raises as of the end of September – are up by 77%, to 23 funding deals worth $427.4 million.

In third place was the biotech/pharma sector, which secured 31 raises for $143 million. Next was the hemp sector, which completed 11 financing deals for $142 million. Software and media hit 19 deals for $132 million, and after that, the investments and M&A sector raised $105 million from five capital raises.

Bringing up the rear were the cannabis real estate sector, with three raises for $79 million, consumption devices, which had six deals for $46 million, infused product makers, which raised only $21 million from 11 deals, ancillary companies, which had two raises for $13 million, and agriculture technology, with a single capital raise of $1.63 million.

Deals by Region

Where capital raises are happening right now isn’t much of a surprise, with California and New York leading the pack at 24 and 18, respectively. Florida, the next most active state, according to data from Viridian, saw nine capital raises for the 12 month period ended Sept. 29.

But there’s great disparity in the value of the raises, as well. Those 24 deals in California only brought in $325.1 million. By contrast, New York’s 33% fewer deals brought in 35% more cash at $439.1 million.

California also led in merger and acquisition activity over the past 12 months, with 19 closed in the period. That’s more than double the next more active state – Florida. (Full Story)

In category:Business
Next Post

Hightimes, Adam Levin Settle with SEC Over Securities Fraud Scheme

Financially troubled Hightimes Holding Corporation, publisher of iconic High Times magazine, has agreed to pay the U.S. Securities and Exchange Commission (SEC) more than half a million dollars to settle charges the company “fraudulently promote securities” during and after a Regulation A stock offering that…
Previous Post

New Mexico Adult-Use Marijuana Sales Cross Half-Billion-Dollar Mark As Latest Monthly Sales Narrowly Miss Record

New Mexico’s legal marijuana retailers sold more than $47 million of combined adult-use and medical marijuana products in September, according to new data from the New Mexico Regulation & Licensing Department (RLD). While that marks a slight decline from the…
Random Post

DEA Celebrates 50-Year Anniversary While Failing To Win The Drug War

The Drug Enforcement Administration (DEA) celebrated its 50th anniversary this week—marking a half century of enforcing criminalization laws that have failed to fulfill the mission to eradicate drugs at the same time that nearly half of the country has legalized…
Random Post

Where Presidential Candidate Nikki Haley Stands On Marijuana

The 2024 presidential election cycle is already heating up, with former South Carolina Gov. Nikki Haley (R) announcing that she’s seeking the Republican nomination. So where does she stand on marijuana policy issues? That’s a question that will be asked…
Random Post

Entrepreneur Set To Make History With Cannabis Dispensary After Leaving Six-Figure Finance Job

New ground is about to be broken in New Jersey.  NJBIZ reports that Tahir Johnson — the owner of Simply Pure Trenton — is set to become the first entrepreneur with a cannabis-related conviction to own and operate a legal-use dispensary in New Jersey.…
Random Post

Cannabis businesses make push to showcase Black-owned brands

Inside Josephine and Billie’s apothecary-styled marijuana store on Martin Luther King Jr. Boulevard in South Los Angeles, several cannabis brands are prominently displayed and labeled as Black-owned. A tall, glass showcase centered along the back of the store – an…