Industry sector

Tracking U.S. Cannabis Capital Raises by Region and Industry Sector

  • The Viridian Capital sector and regional trackers provide actionable insights into where capital is raised (by country, state and region) and which of the twelve cannabis/psychedelic sub-sectors collects it.

  • The chart ranks all US states in the Midwest, South, Northeast, and West regions in order of total capital raised. The colored bars indicate the amount raised per sector.

  • During the LTM ending 8/26/22, companies in 23 US states raised capital. Sixteen states raised over $10 million, representing 86.7% of the total volume of $5,474 million.

  • Unsurprisingly, companies in the West region, which includes Arizona, California, Colorado, Oregon, Washington, Nevada, and Oregon, raised the most capital during the LTM period. What IS surprising is the low share of the region’s total (20%) for businesses in the Culture and Retail sector (green bar). The West region raised less capital for Culture & Retail than any other region.

  • The Western region had a more diverse list of sectors mobilizing capital. The largest sector, software (red bar), was due to Oregon-based Dutchie. Real estate (light blue bar) was the second most important, mainly due to innovative industrial properties based in California IIRP and Pelorus (private).

  • Most of Culture & Retail’s fundraising activity during the LTM period occurred in the Northeast region, including the states of Connecticut, Maryland, Massachusetts, New Jersey , New York, and Pennsylvania, as companies in those states funded the expansion of grow facilities and dispensaries.

  • We expect significant growth over the next six months in Midwest and Southern states including Ohio, Missouri, Illinois (new licenses), Virginia and Arkansas. Investors should look for opportunities in these markets.

The Viridian Capital Chart of the Week highlights key trends in investment, valuation and mergers and acquisitions Viridian Cannabis Transaction Tracking.

The Viridian Cannabis Transaction Tracking provides the market insights that cannabis companies, investors, and acquirers use to make informed decisions about capital allocation and M&A strategy. The Deal Tracker is a proprietary news service that monitors capital raising and M&A activity in the legal cannabis, CBD and psychedelic industries. Each week, the Tracker aggregates and analyzes all completed deals and segments each one based on key metrics:

  • Deals by industry sector (to track the flow of capital and M&A deals by any of 12 industries – from culture to brands to software)

  • Deal structure (equity/debt for capital raises, cash/stock/compensation for M&As) Status of company announcing deal (public vs. private)

  • Agents of the Operation (Issuer/Investor/Lender/Acquirer) Main terms of the operation (Pricing and Valuation)

  • Key deal terms (deal size, valuation, price, warrants, cost of capital)

  • Transactions by issuer/buyer/seller location (to track capital flow and M&A transactions by state and country)

  • Credit ratings (leverage and liquidity ratios)

Since its inception in 2015, the Viridian Cannabis Deal Tracker has tracked and analyzed over 2,500 fundraisings and 1,000 M&A deals totaling over $50 billion in total value.

Photo by Javier Hasse.

The previous article comes from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.