Investors are starting to gain a hefty appetite for marijuana related businesses. According to a report by CB Insights (report behind password wall), during the last two fiscal years, approximately $104.5 million in angel and venture investment has been used for cannabis related businesses. Notably, this includes a staggering 941 percent increase in 2014.
PayPal CoFounder and Silicon Valley venture capitalist heavyweight, Peter Thiel’s, participation in a $75 million Series B round of Privateer Holdings has grabbed most headlines, with a detailed report outlining 60 different deals. However, through browsing the report, it is noticeable that several venture and angel based investment deals are missing documentation.
Shockingly, very few of the total deals in the study were made in the known-to-be marijuana friendly regions such as Colorado and Washington. Instead, most of the deals were from companies in midwestern states and Canada.
The top three investments included in the report are:
- Privateer Holdings – $75MM
- PharmaCann – $20MM
- LeafLine Labs – $12.4MM
In an interview with Inc., co-founder of The ArcView Group, Steve DeAngelo, said his organization has brokered more than $17 million in funding with 34 companies since 2014. DeAngelo later elaborated,
“In the beginning of this industry, our biggest challenges were legal, but we solved many of those challenges. After we figured out the legal landscape, many of our challenges were financial to help scale up and professionalize the businesses.”