Overview of the Cannabis Industry

Overview of the Cannabis Industry

The Cannabis industry involves the cultivation, production, and sale of cannabis and cannabis-derived products for medicinal, recreational, and industrial purposes.

Market Growth

The global cannabis market was valued at approximately $20.5 billion in 2020 and is projected to reach $90.4 billion by 2026, growing at a CAGR of 28.0%.

Drivers of Industry Growth

The growth of this industry is driven by the increasing legalization and acceptance of cannabis for medicinal and recreational use, advancements in cultivation and extraction technologies, and the growing demand for cannabis-based products.

Impact on Society

The cannabis industry has a significant impact on society by providing new medical treatments, creating jobs, and generating tax revenue. Medicinal cannabis is used to treat various conditions, including chronic pain, epilepsy, multiple sclerosis, and anxiety, providing patients with an alternative to traditional pharmaceuticals.

Recreational Cannabis

Recreational cannabis offers consumers a legal and regulated option for adult use, reducing the illegal market and associated criminal activities.

Industrial Uses of Cannabis

The industrial use of cannabis, particularly hemp, includes the production of textiles, biofuels, and construction materials, promoting sustainability and innovation.

Effect of COVID-19 on Industry Adoption

The COVID-19 pandemic has accelerated the growth of the cannabis industry, as consumers seek alternative wellness products and governments recognize the economic potential of cannabis legalization.

Challenges in the Industry

However, the industry faces challenges related to regulatory compliance, stigma, and the need for research on the long-term effects of cannabis use.

Future of the Cannabis Industry

Despite these challenges, the potential benefits of cannabis innovations are significant, and continued investment and policy support are essential for driving growth in this sector. As the cannabis industry continues to evolve, it will play a crucial role in shaping the future of medicine, recreation, and industrial applications, promoting economic development and societal well-being.

How to connect with VC firms in the Cannabis Industry?

Target Firms

To connect with VCs in the Cannabis sector, target firms such as Privateer Holdings, Casa Verde Capital, and The Arcview Group. Research their investment portfolios to understand their focus areas and tailor your approach accordingly.

Networking Opportunities

Networking through industry conferences, cannabis summits, and expos can provide opportunities to meet VC partners. Engaging in these events allows you to establish connections and showcase your startup to potential investors.

Effective Pitching

When pitching, focus on demonstrating the market potential, technological innovation, and scalability of your cannabis solution. Be prepared to discuss your business model, regulatory compliance, and how you plan to achieve profitability.

Demo Days Participation

Participating in demo days hosted by cannabis accelerators or incubators can help you showcase your product to a broader audience of VCs. These events provide a platform to highlight your solution’s unique value proposition.

Crafting a Compelling Story

Crafting a compelling story about your product’s impact and the problem it solves will resonate well with VC investors who are looking for high-growth potential startups. Emphasize the transformative potential of your solution.

Comprehensive Pitch Deck

Following up with a comprehensive pitch deck that includes market analysis, go-to-market strategy, and potential exit opportunities can further strengthen your case. A detailed and well-prepared pitch deck is crucial for attracting investor interest.

Strategic Partnerships

Highlighting any strategic partnerships or collaborations with dispensaries or cannabis brands can also add weight to your pitch. These partnerships validate your solution and demonstrate market acceptance.

Presenting a Strong Team

Ensuring that you present a well-rounded team with expertise in both cannabis industry regulations and product development will appeal to VCs looking for capable execution of your vision. A strong and experienced team is essential for successful implementation and growth.

Most active VC firms in Cannabis Industry?

Overview

To connect with VCs in the Cannabis sector, target firms such as Sequoia Capital, Andreessen Horowitz, and Casa Verde Capital. These firms have a strong track record of investing in successful cannabis startups.

Sequoia Capital

Sequoia Capital, known for backing companies like Eaze and Pax Labs, focuses on high-growth potential and market disruption. They are interested in cannabis startups that can significantly impact the market.

Andreessen Horowitz

Andreessen Horowitz, with investments in companies like Flow Kana and Tokken, looks for innovative cannabis solutions that can scale globally. Their portfolio highlights transformative cannabis technologies.

Casa Verde Capital

Casa Verde Capital, founded by Snoop Dogg, seeks out startups with strong brand presence and scalable business models in the cannabis industry. They prioritize companies that can achieve significant market penetration.

Research and Connection

To connect with these VCs, research their investment portfolios and identify partners who have shown interest in your industry. Attend industry conferences, cannabis summits, and cannabis tech forums where these VCs are likely to be present.

Participating in Demo Days

Participating in demo days hosted by cannabis accelerators or incubators can also provide exposure. These events offer opportunities to showcase your product to a broader audience of potential investors.

Pitching to VCs

When pitching to VCs, emphasize your startup’s market opportunity, technological innovation, and scalability. Be prepared to discuss your business model, customer acquisition strategies, and revenue projections in detail.

Crafting a Compelling Story

Crafting a compelling story about your product’s impact and the problem it solves will resonate well with VC investors. Highlighting the unique aspects and potential of your solution is crucial.

Comprehensive Pitch Deck

Follow up with a comprehensive pitch deck that includes market analysis, competitive landscape, and potential exit opportunities. This will provide VCs with a clear understanding of your business and its potential.

Strategic Partnerships

Highlighting any strategic partnerships or collaborations with major cannabis companies or regulatory bodies can also add weight to your pitch. These relationships can demonstrate market validation and growth potential.

Presenting a Strong Team

Ensure that you present a well-rounded team with expertise in both cannabis technology and business development. A capable team is essential for executing your vision and achieving success.

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We found 130 VC firms investing in Cannabis on Angels Partners

  • main investor picture
    Daisy Mellet
    Partner
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    David Goldburg
    Partner
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    Mitch Baruchowitz
    Managing Partner
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    Jeff Monat
    Partner
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    Kevin Gibbs
    Partner
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    Mina Mishrikey
    Partner
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    Max Gerard
    Partner
Investor Picture
Previous Investments
  • Canndescent: $13000000 (Later stage VC)
  • Civilized:

Merida Capital Partners

New York City, U.S.A.

Investing In

Cannabis • Food & Beverage • Medical Devices (& Hospital Services) • Healthcare (& Wellness) • Life Science

Description

Merida Capital Partners is a private equity investment firm targeting fundamental growth and development of the cannabis industry. Their investment emphasis focuses on cultivation technologies, products and services associated with the evolution of cannabis as an agricultural product, a natural plant-based medicine, a constituent in pharmaceutical formulations, and a recreational consumer product.

Vulcan Capital
Investing in Software (Web Marketplace Saas..) &b...
 Bellevue Washington ,..., U.S.A.
  • main investor picture
    Steve Hall
    Venture Partner
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    Abhishek Agrawal
    Senior Associate
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    YB (Yongbai) Choi
    Investor
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    Stuart Nagae
    Investor
Investor Picture
Previous Investments
  • UNITY Biotechnology: $35000000 (Series B)
  • Oxygen Media: $100000000 (Later stage VC)
  • Caspian Networks: $85000000 (Later stage VC)
  • solarisBank: $67490000 (Later stage VC)
  • Cytokinetics, Inc.: $40000000 (Later stage VC)
  • PortalPlayer: $22000000 (Later stage VC)
  • Clean Fund: $15000000 (Later stage VC)
  • Versive: $12700000 (Later stage VC)
  • IFILM: $10000000 (Other)
  • Rocket Network: $9300000 (Later stage VC)
  • ICON Technology (Homebuilding): $9000000 (Early stage VC)
  • Make.TV Inc.: $8500000 (Later stage VC)
  • Pointy: $6000000 (Early stage VC)
  • Nomadic: $6000000 (Seed Round)
  • Against Gravity: $5000000 (Later stage VC)
  • Ryff: $5000000 (Early stage VC)
  • Blokable, Inc.: $4886194 (Later stage VC)
  • Grab: $2000000 (Seed Round)
  • Taunt: $1700000 (Seed Round)
  • Matcherino: $1500000 (Seed Round)
  • eStyle: $1139000 (Later stage VC)
  • TicketGuardian LLC: $500000 (Other)
  • Prophia: $10000000 (Series A)
  • CivicEye: $12000000 (Series A)
  • Rad Power Bikes: $150000000 (Series D)
  • Rad Power Bikes: $150000000 (Series C)
  • Rad Power Bikes: $25000000 (Series B)
  • Voodle: $6000000 (Series A)
  • Nautilus Biotechnology: $76000000 (Series B)
  • Pixvana, Inc.: $14000000 (Series A)
  • Pixvana, Inc.: $6000000 (Seed)
  • 4INFO: $8000000 (Series Unknown)
  • 4INFO: $14000000 (Series Unknown)
  • Calxeda: $55000000 (Series C)
  • Omeros: $20000000 (Post Ipo Equity)
  • Infinia: $12000000 (Series Unknown)
  • Infinia: $7000000 (Series B)
  • Infinia: $50000000 (Series B)
  • Infinia: $10000000 (Series A)
  • Radar Networks: $13000000 (Series B)
  • Radar Networks: $5000000 (Series A)
  • AdaptX: $10000000 (Series B)
  • AdaptX: $6000000 (Series A)
  • Blokable: $6000000 (Series Unknown)
  • Rebellyous Foods: $20000000 (Series B)
  • Kevala: $12000000 (Series A)
  • Nifty Games: $26000000 (Series B)
  • Gentem: $10000000 (Series A)
  • Gentem: $4000000 (Seed)
  • AI.Reverie: $6000000 (Seed)
  • AI.Reverie: (Seed)

Vulcan Capital

Bellevue Washington - California, U.S.A.

Investing In

Software (Web Marketplace Saas..) • PropTech • Other • IT (& TMT) • BioTech • Businesses Solutions • FinTech (& Financials services) • Hardware (& Manufacturing) • Energy • Retail (& E-Commerce) • IoT (& Wearables) • CleanTech • A.I. (& Big Data) • HealthTech (& Fitness) • Cannabis • Gaming (& eSports) • Medical Devices (& Hospital Services) • Robotics • Real Estate (& Construction) • Healthcare (& Wellness) • LegalTech • Consumer

Description

Vulcan Capital is a private equity and venture capital firm and investment arm of Paul Allen based in Seattle, Washington. The firm focuses on investing in all stages of corporate development through leveraged buyouts, growth capital, turnarounds and early-stage venture capital. The firm invests in the financial services, internet technology, life sciences, media, communication and consumer sectors. It was established in 2003 and operates as an investment arm of Vulcan.

Deerfield Management
Investing in Software (Web Marketplace Saas..) &b...
 New York City - Tel Aviv, U.S.A.
  • main investor picture
    Steve Anastos
    Principal
  • main investor picture
    Adam Greene
    Partner
  • main investor picture
    James Flynn
    Managing Partner
  • main investor picture
    Jean Kim
    Partner
  • main investor picture
    Andrew ElBardissi
    Partner
  • main investor picture
    Jason Fuller
    Partner
  • main investor picture
    Narendra Nayak
    Partner
  • main investor picture
    Nicholas Bishop
    Partner
  • main investor picture
    Sumner Anderson
    Partner
  • main investor picture
    Brian Bizoza
    Partner
  • main investor picture
    Kevin Berg
    Partner
  • main investor picture
    Vince Mellet
    Partner
  • main investor picture
    Terence Karnal
    Partner
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    Abraham Kometz
    Partner
  • main investor picture
    Adam Grossman
    Partner
  • main investor picture
    Alexis Cazé
    Partner
  • main investor picture
    Alison Stamas
    Associate
  • main investor picture
    Cameron Wheeler
    Partner
  • main investor picture
    Julian Harris
    Partner
  • main investor picture
    Crystal Wright
    Associate
  • main investor picture
    Eddie Yang
    Analyst
  • main investor picture
    Elise Wang
    Partner
  • main investor picture
    Howard Furst
    Partner
  • main investor picture
    Jackson Harvey
    Analyst
  • main investor picture
    Konstantinos Aprilakis
    Partner
  • main investor picture
    Peter Steelman
    Partner
  • main investor picture
    Veranika Razhkova
    Analyst
  • main investor picture
    Bharath Ganesan
    Principal
  • main investor picture
    Steven Hochberg
    Partner
  • main investor picture
    Gilan Megeed
    Principal
  • main investor picture
    Leslie Henshaw
    Partner
  • main investor picture
    Shumaila Irshad
    Analyst
  • main investor picture
    Vincent Mellet
    Partner
  • main investor picture
    Wenxi Chen
    Analyst
  • main investor picture
    Zheng Su
    Partner
Investor Picture
Previous Investments
  • Ardelyx: $110000000 (Other)
  • Recovery Centers of America: $100000000 (Other)
  • Oncorus: $89500000 (Later stage VC)
  • Oncorus, Inc.: $57000000 (Early stage VC)
  • Shockwave Medical: $45000000 (Later stage VC)
  • Fractyl Laboratories: $44000000 (Later stage VC)
  • Synlogic: $42000000 (Later stage VC)
  • SentreHEART: $35000000 (Later stage VC)
  • Phoenix Nuclear Labs: $12000000 (Later stage VC)
  • Epic Sciences:
  • Cystetic Medicines: $3850000 (Early Stage VC)
  • Pleno: $40000000 (Series A)
  • MMI: $75000000 (Series B)
  • Aurion Biotechnologies: $120000000 (Venture Round)
  • HearMe: $2000000 (Series A)
  • Spectrawave: $13000000 (Series A)
  • Liquid Wire: $10000000 (Series A)
  • Meditrina: $10000000 (Series Unknown)
  • Phoenix: $12000000 (Series Unknown)
  • SHINE Technologies: $130000000 (Series Unknown)
  • Perceive Biotherapeutics: $78000000 (Series B)
  • Vicinitas Therapeutics: $65000000 (Series A)
  • Ribon Therapeutics: $65000000 (Series C)
  • Nuvalent: $140000000 (Series B)
  • Nuvalent: $50000000 (Series A)
  • Pairwise Plants: $90000000 (Series B)
  • Pairwise Plants: $25000000 (Series A)
  • Neomorph: $110000000 (Series A)
  • Homology Medicines: $84000000 (Series B)
  • Homology Medicines: $44000000 (Series A)
  • Blade Therapeutics: $45000000 (Series B)
  • Jaguar Gene Therapy: $140000000 (Series B)
  • Jaguar Gene Therapy: (Series A)
  • Happify: $73000000 (Series D)
  • Great Lakes Discoveries LLC: $130000000 (Undisclosed)
  • ARTMS: $19000000 (Series A)
  • Four Points Innovation: $130000000 (Undisclosed)
  • The Johns Hopkins University: $65000000 (Series Unknown)
  • Infinity Pharmaceuticals: $100000000 (Post Ipo Debt)
  • MannKind: $160000000 (Post Ipo Debt)
  • Covagen: $66000000 (Series B)
  • Xlumena: $25000000 (Series C)
  • Xlumena: $7000000 (Series B)
  • Adaptive Phage Therapeutics: $41000000 (Series B)
  • Mirum Pharmaceuticals: $120000000 (Series A)
  • AveXis: $65000000 (Series D)
  • AveXis: $10000000 (Series C)
  • Audentes Therapeutics: $43000000 (Series B)
  • Hana Biosciences: $100000000 (Private Equity)
  • Altus Pharmaceuticals: $51000000 (Series C)
  • Actio Biosciences: $55000000 (Series A)
  • Jounce Therapeutics: $47000000 (Series A)
  • Crossover Health: $170000000 (Series D)
  • Curation Health: (Series A)
  • Concert Genetics: (Series Unknown)
  • CambridgeSoft: $31000000 (Series Unknown)

Deerfield Management

New York City - Tel Aviv, U.S.A.

Investing In

Software (Web Marketplace Saas..) • IT (& TMT) • Media • Education • BioTech • Businesses Solutions • FinTech (& Financials services) • HealthTech (& Fitness) • Cannabis • Gaming (& eSports) • Analytics • Cloud Services (& Infrastructure) • Material Science • Medical Devices (& Hospital Services) • Aerospace (& Defense) • Healthcare (& Wellness) • Investment Management • Life Science • Oncology • Consumer • Pharmaceutical (& Medicine)

Description

Deerfield Management is a venture capital firm which specializes in seed, early stage and later stage investments. The firm invests in the healthcare, pharmaceutical and biotechnology sectors. The firm is based in New York, New York with additional offices in Shanghai, China and Epalinges, Switzerland.

Square Peg Capital Pty Ltd.
Investing in Software (Web Marketplace Saas..) &b...
 Massachusetts, United States
Investor Picture
Previous Investments
  • ClimaCell Inc.: (early stage)
  • LifeBEAM: (mid stage)
  • Ready4: (mid stage)
  • Square Peg Capital: (mid stage)
  • Internet of Things, Digital Health, Social Apps:
  • ooVoo:

Square Peg Capital Pty Ltd.

Massachusetts, United States

Investing In

Software (Web Marketplace Saas..) • PropTech • Other • IT (& TMT) • Hospitality (& Events) • Media • Education • BioTech • AgroTech • Businesses Solutions • FinTech (& Financials services) • Hardware (& Manufacturing) • Energy • Retail (& E-Commerce) • Sales (& Marketing) • Cosmetics (& Fashion) • Entertainment (& Sports) • IoT (& Wearables) • CleanTech • A.I. (& Big Data) • HealthTech (& Fitness) • Cannabis • Blockchain (& Cryptos) • Web Security (& Privacy) • Gaming (& eSports) • Advertising • Analytics • AR/VR • Autonomous vehicles (& Cars) • Cloud Services (& Infrastructure) • Developer tools • Future Of Work • Food & Beverage • GovTech • Human Resources • Impact • Insurance (& InsurTech) • Local commerce • Logistics (& Distribution) • Material Science • Medical Devices (& Hospital Services) • Messaging • Payments • Robotics • Mobile Apps • Aerospace (& Defense) • Real Estate (& Construction) • SaaS

Description

Partner at Square Peg Capital

Partner at Square Peg Capital

Investor Picture
Previous Investments
  • StormSensor: $1200000
  • StormSensor:

E8

Seattle, U.S.A.

Investing In

IT (& TMT) • CleanTech • Cannabis

Description

Element 8 is a member organization of private and accredited angel investors. The firm invests in early stage companies operating in the clean technology, energy and information technology sectors. It is based in Seattle, Washington and was founded in 2006.

Canrock Ventures
Investing in Software (Web Marketplace Saas..) &b...
 New York City, U.S.A.
  • main investor picture
    Jim Estill
    Partner
  • main investor picture
    Mark Fasciano
    Partner
Investor Picture
Previous Investments
  • Plum (Human Capital Services): $2200000 (Seed Round)
  • CooCoo: $1000000 (Early stage VC)
  • Tacit Innovations: $700000 (Seed Round)
  • Sentiment Alpha: $410000 (Later stage VC)
  • Crowdster: $398000 (Later stage VC)
  • Vidaao: $300000 (Seed Round)
  • ViewsIQ: $40000 (Seed Round)
  • BuildCircle: $40000 (Seed Round)
  • Plum.io: (Early stage VC)
  • Honestly Now: (Seed Round)

Canrock Ventures

New York City, U.S.A.

Investing In

Software (Web Marketplace Saas..) • IT (& TMT) • FinTech (& Financials services) • Cannabis • Advertising • Investment Management • Mobile • Oil & Gas (& Mining)

Description

Canrock Ventures is an technology focused venture capital firm and incubator located in Long Island, NY. Canrock takes a 40-80% equity stake for early investment ($500k-$1.5m), making it possible to reach 5-10x target returns. Since its inception, Canrock has raised over $400 million for startup companies, with 20 exits and attaining a total market value of $4.1 billion.

Montlake Capital
Investing in Software (Web Marketplace Saas..) &b...
 Seattle, Washington, U.S.A.
  • main investor picture
    Vivian Loh Nahmias
    CFO
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    Andy Dale
    Managing Director
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    Noel de Turenne
    Managing Director
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    Andrew Dale
    Partner
  • main investor picture
    Noel Turenne
    Partner
Investor Picture
Previous Investments
  • Wellpartner: $16100000 (Later stage VC)
  • PayScale: $10300000 (Later stage VC)
  • ClearAccess: $6000000 (Later stage VC)
  • Vanson HaloSource: $5000000 (Later stage VC)
  • Intrepid Learning, Inc.: $4250000 (Later stage VC)
  • Max Viz:
  • Escapia: $2000000 (Later stage VC)
  • Fast Water Heater Company:
  • Theo Chocolate:
  • Fedelta Home Care:

Montlake Capital

Seattle, Washington, U.S.A.

Investing In

Software (Web Marketplace Saas..) • IT (& TMT) • Education • BioTech • Businesses Solutions • FinTech (& Financials services) • Hardware (& Manufacturing) • HealthTech (& Fitness) • Cannabis • Food & Beverage • Logistics (& Distribution) • Medical Devices (& Hospital Services) • Investment Management • Mobile

Description

Montlake Capital is a growth equity investment firm based in Seattle, Washington. The firm invests in the consumer and business products and services, financial services and technology sectors located in the Western United States, with a preference for the Pacific Northwest and Rocky Mountains.

Investor Picture
Previous Investments
  • Xtraction Services: $2800000
  • Xtraction Services:

Ollerhead Capital

Toronto, Canada

Investing In

PropTech • Other • Education • FinTech (& Financials services) • Hardware (& Manufacturing) • HealthTech (& Fitness) • Cannabis • Real Estate (& Construction) • Healthcare (& Wellness)

Description

Ollerhead Capital is a merchant banking and financing advisory firm based in Toronto, Canada. Founded in 1997, the firm provides advisory services in the areas of corporate finance, project management, strategic planning, financial modeling, business plan review and evaluation of acquisitions.

Investor Picture
Previous Investments
  • Vertosa:

AFI Capital Partners

Seattle, U.S.A.

Investing In

IT (& TMT) • Hardware (& Manufacturing) • Cannabis

Description

Founded in 2018, AFI Capital Partners is a venture capital firm based in Seattle, Washington.

Investor Picture
Previous Investments
  • Bellingham Cold Storage:

Joshua Green Corporation

Seattle, U.S.A.

Investing In

Other • Hardware (& Manufacturing) • CleanTech • Cannabis

Description

Joshua Green Corporation is a private equity investment firm based in Seattle, Washington. The firm invests in a diverse range of assets, including private companies, public equities and real estate.

Investor Picture
Previous Investments
  • MJ Freeway: $10000000

Cresco Capital Partners

Dallas, U.S.A.

Investing In

Cannabis

Description

Cresco Capital Partners is a private investment firm that prefers to invest in the cannabis industry. The firm is based in Dallas, Texas.

  • main investor picture
    Matthew Hawkins
  • main investor picture
    Tiffany Liff
    Managing Director
  • main investor picture
    Dov Szapiro
    Managing Partner
  • main investor picture
    Andy Sturner
    Managing Partner
Investor Picture
Previous Investments
  • Holistic Industries:

Entourage Effect Capital

Dallas, U.S.A.

Investing In

Cannabis • Food & Beverage • Logistics (& Distribution)

Description

Entourage Effect Capital (formerly known as Cresco Capital Partners) is a private equity investment firm dedicated to investing in the cannabis industry. The firm is based in Dallas, Texas and was founded in 2014.

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