New ways for cannabis companies to raise money

908 0

Selling marijuana doesn’t have to be the only way to see green

As the cannabis industry continues to expand across the US – and, in fact, the world – it will become more competitive and difficult for making a living. Fortunately, the largest market is still the North American market, which had recorded sales of $47.3 billion last year (the US controlled only 20%). There are other ways to make a living off of marijuana instead of just selling it, though.

Venture capital firms are quickly jumping onto the marijuana train. Only in the 10 months of 2018, $300 million has been invested into 54 venture capital deals in the US. Major investors are getting involved, as well, as evidenced by the participation of billionaire William Wrigley, Jr. The chewing gum magnate led an investment round presented by Surterra Wellness last month that saw the company attract $65 million in investment dollars.

Cannabis companies are also getting involved in the stock markets. A number of companies, such as Cronos Group and Canopy Growth, are traded publicly and many more will follow. Investing in marijuana stocks could be a good way to add a little extra money to the wallet without having to make sizeable investments.

Hedge funds are gaining steam, as well. Poseidon Asset Management out of San Francisco, which was founded in 2014, has $60 million in assets under management and all of its investments target the cannabis industry.

Leon Cooperman is a billionaire hedge fund manager out of New Jersey. He invested in Chicago-based grower Green Thumb Industries, partly due to the fact that he knows the company’s owner, but also because he sees the value of the industry.

Other funds could soon be joining the fray. Pension funds and mutual funds are currently shying away from marijuana investments, but this could change in the near future with the advanced legalization expected in Canada and more states across the US. Talk that President Trump could soon focus on marijuana at the federal level could also have a positive impact on growth and see many more players entering the marijuana investment sector.