Heavyweight: the global cannabis industry 2021

2021-12-31

As global investors pay more and more attention to emerging opportunities in this industry, capital has begun to flow into the market at an unprecedented level. As investors poured new funds into the industry, cannabis transactions in the first half of 2021 reached a record $7.9 billion. As companies race to enter new markets, expand operational capabilities, and obtain new intellectual property rights, almost every sector of the cannabis industry has seen heavy investmen.

According to the newly released research "Fostering Capital: Marijuana Finance and Investment" by New Frontier Data, nine cannabis transactions were completed in the last week of November 2021, and companies raised a total of 372 million U.S. dollars, with an average transaction size of 41 million U.S. dollars. Looking back at the same week in 2020, seven deals were close to raising only $27.6 million. It is clear that despite the absence of federal reforms, investors are still betting on the explosive recent growth of the market. Interestingly, as of November 2021, the largest M&A activities in 2021 will be concentrated in the areas of production, plantation, and retail.
 
Despite the limitations of unregulated industries, the continued expansion of legal markets continued normalization, and growing consumer demand provide attractive investment opportunities that are driving complex global economic growth.
 
As global investors pay more and more attention to emerging opportunities in this industry, capital has begun to flow into the market at an unprecedented level. As investors poured new funds into the industry, cannabis transactions in the first half of 2021 reached a record $7.9 billion. As companies race to enter new markets, expand operational capabilities, and obtain new intellectual property rights, almost every sector of the cannabis industry has seen heavy investment.
 
According to the newly released research "Fostering Capital: Marijuana Finance and Investment" by New Frontier Data, nine cannabis transactions were completed in the last week of November 2021, and companies raised a total of 372 million U.S. dollars, with an average transaction size of 41 million U.S. dollars. Looking back at the same week in 2020, seven deals were close to raising only $27.6 million. It is clear that despite the absence of federal reforms, investors are still betting on the explosive recent growth of the market. Interestingly, as of November 2021, the largest M&A activities in 2021 will be concentrated in the areas of production, plantation, and retail. At the same time, private equity in the market has been injecting funds into affiliated companies that serve the industry, and technology companies will become the main beneficiaries of private equity financing in 2021.
 
Despite the limitations of unregulated industries, the continued expansion of legal markets continued normalization, and growing consumer demand provide attractive investment opportunities that are driving complex global economic growth.