Chart: Year-to-date cannabis investment activity up 40% over 2018, but it’s slowing


2019-11-06 00:04:15 mjbizdaily


Cannabis industry capital investment in 2019 hit $10.4 billion through Week 40 – a 40% increase over 2018 – but the previously hot investment activity has cooled in recent months and is now running at what one analyst called a more “normal” pace of growth. This comparison of public and private capital investments from 2017 to 2019 – along with other new marijuana industry data and analysis – is available in the November update to the 2019 Marijuana Business Factbook. By comparison, capital raises through Week 40 were up 300% ($5.6 billion) from 2017 to 2018. During September 2019, the number of raises was up over the same month in 2018, but the average size and total capital raised were down year-over-year. The slowed investment comes along with recent layoffs across various sectors of the cannabis industry – including 20%-25% workforce reductions by the Hexo Corp., Pax Labs and Weedmaps. But analysts say slowed investment isn’t unexpected after a period of rapid growth. “Current conditions are closer to normal; the prior year or two of almost unlimited capital to burn without showing profits was abnormal,” said Craig Behnke, equity analyst for MJBizDaily’s Investor Intelligence. Behnke noted that many cannabis companies, even those that have raised significant amounts of capital, have yet to produce earnings or cash flow. Rather than raising cause for concern, the slowdown is a natural part of the investment cycle. “Investors being more judicious and pressing companies to focus on profitability is actually a sign of a healthy, rational capital market,” he said. And the competition for resources forces companies to run more efficiently, as evidenced by the layoffs. Another factor playing a role in the investment slowdown is the type of investors entering the space. As marijuana investment has become more mainstream, traditional investors have increasingly brought their money to the table. With traditional players come traditional expectations – those that rely on tangible results. Here’s what else you need to know about cannabis investment: Maggie Cowee can be reached at [email protected] To purchase a copy of the November update to the 2019 Marijuana Business Factbook, click here. For analysis and in-depth looks at the investment trends and deals driving the cannabis industry forward, sign up for our premium subscription service, Investor Intelligence.
坎纳比斯2019年的工业资本投资在40周达到104亿美元,比2018年增长40%。但最近几个月,之前火爆的投资活动已经降温,目前正以一位分析师所称的更为“正常”的增长速度运行。 这种对2017年至2019年公私领域资本投资的比较,以及其他新的大麻行业数据和分析,可在2019年11月更新的《大麻商业便览》中查阅。 相比之下,从2017年到2018年,通过第40周筹集的资金增加了300%(56亿美元)。 2019年9月,募集资金数量较2018年同期有所增加,但平均规模和募集资金总额同比有所下降。 投资放缓的同时,大麻行业的各个行业也出现了裁员,包括 Hexo Corp .、 PaxLabs 和 Weedmap 裁员20%-25%。 但分析师表示,在经历了一段快速增长之后,投资放缓并不出人意料。 MJBizDaily 投资者情报公司( Investor Intelligence )的股票分析师克雷格•比肯( Craig Beink )表示:“目前的状况更接近正常;上一年或两年几乎无限的资本在没有显示利润的情况下消耗殆尽。” Beink 指出,许多大麻公司,甚至那些筹集了大量资金的公司,尚未产生收益或现金流。 经济放缓并非引起担忧,而是投资周期的自然组成部分。 他表示:“投资者更加谨慎,敦促企业关注盈利能力,实际上是一个健康、理性的资本市场的迹象。” 而对资源的竞争迫使企业更有效率地运营,裁员就证明了这一点。 在投资放缓中起作用的另一个因素是投资者进入这一领域的类型。 随着大麻投资日益成为主流,传统投资者越来越多地把钱拿到了桌面上。 传统的玩家会带来传统的期望——那些依赖有形结果的人。 这里是您需要了解的关于大麻投资的其他内容: Maggie Cowee 可通过[电子邮件保护]联系 要购买2019年11月更新的《大麻商业便览》的副本,请单击此处。 为了分析和深入研究推动大麻产业向前发展的投资趋势和交易,注册我们的高级订阅服务,投资者情报。