Venture Capitalists Pour Billions Into Booming Cannabis Tech Startups
Venture capitalists invest heavily in cannabis-focused startups, putting $1.2 billion into the sector in the first half of 2019 alone. As state legalization expands and morality clauses fade, early investors position themselves for a projected $80 billion market.
Venture capitalists show massive interest in the cannabis industry, investing $1.2 billion into U.S.-based cannabis companies in the first half of 2019. This funding surge easily surpasses last year's record of $836 million, putting the industry on track to reach $2.5 billion by the end of the year. This single-year investment total exceeds the amount of capital funneled into the sector over the entire previous decade.
Increasing state legalization of medical and recreational marijuana drives this rapid growth by allowing companies like the delivery service Eaze to expand at unprecedented rates. Furthermore, venture capitalists and their limited partners shed outdated morality clauses that previously prevented them from backing weed-focused businesses. Early movers like DCM Ventures and Casa Verde Capital reap significant benefits as the market catches on.
The CannTech sector remains in its early days but holds enormous financial promise, with market projections estimating a value of up to $80 billion by 2030. Pioneering investors like DCM partner Kyle Lui face initial skepticism from peers but ultimately prove the massive potential of this evolving space. As stigma fades and profits rise, interest in cannabis technology continues to soar.