$10B+ in Cannabis Capital Raises to Exceed Pre-Pandemic Levels
Washington, Dec. 15, 2021 (GLOBE NEWSWIRE) -- New Frontier Data (https://newfrontierdata.com), the premier data, analytics and technology firm specializing in the cannabis industry worldwide, publishes its latest report, Cultivating Capital: Cannabis Finance & Investment, released in partnership with FTI Consulting, examining emerging trends, opportunities and risks to investment capital as cannabis normalization continues to prevail in the absence of a federally regulated marketplace.
The report found that since 2019, capital raises in the cannabis industry have totaled $25.6 billion, with $10.1 billion in the first three quarters of 2021 alone, reflecting recent investment in product innovation, improved therapeutic applications and technology-enabled solutions commensurate with a mainstream industry. Consumer demand is a key driver with cannabis consumers spending an estimated $415 billion globally on high-THC cannabis in 2020, and that is projected to grow to nearly $500 billion by 2025.
"North American companies?both Canadian and American?are deploying an unprecedented amount of capital in emerging European and Latin American cannabis markets," noted Giadha A. DeCarcer, Founder and Executive Chair of New Frontier Data. "These strategic investments are positioned to capture the significant consumer and commercial opportunities now arising across the maturing global cannabis economy."
Key Findings:
- Federal Prohibition: Increasing market sophistication is enabling cannabis companies to navigate the challenges created by federal prohibition, while cannabis normalization has bolstered investor confidence in federal reform.
- Capital Risks: Debt financing is on the rise, accounting for 38% of capital financing (up from 18% just three years ago), further illustrating the risks created by the absence of federal banking options.
- M&A Investment Trends: Investments in cultivation and retail facilities accounted for 60% of 2021 deals (over $6 billion), but investors also bet big on technology companies, with 2021 seeing the largest tech deals to date.
- Global Expansion: As the first G7 country to legalize cannabis, 67 (50%) of Canada's M&A transactions in 2021 occurred in foreign markets compared to five U.S transactions (5%), validating the synergy between legalization and global expansion.
Download a complimentary copy of Cultivating Capital: Cannabis Finance & Investment, here: https://info.newfrontierdata.com/cultivating-capital
About New Frontier Data:
New Frontier Data is the premier data, analytics and technology firm specializing in the global cannabis industry, delivering solutions that enable investors, operators, advertisers, brands, researchers and policy makers to assess, understand, engage and transact with the cannabis industry and its consumers.
Our mission is to inform policy and commercial activity for the global legal cannabis industry. We maintain a neutral position on the merits of cannabis legalization through comprehensive and transparent data analysis and projections that shape industry trends, dynamics, demand and opportunity drivers. Founded in 2014, New Frontier Data is headquartered in Washington, D.C. with a presence in Europe, Latin America and Africa. For more information about New Frontier Data, please visit us at www.NewFrontierData.com.
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