VC market for cannabis gains momentum

Investment into US and European cannabis companies have been continuously increasing over the past years.

Whereas 72 venture capital transactions were conducted in 2016, the number of transactions in 2021 (YTD) have increased by almost 60 percent to 115. A significant peak in 2019 can be attributed to the first-ever congressional vote on federally legalizing cannabis and a widespread amount of cannabis reform legislation in twenty-seven US states.

In addition, US and European companies from the cannabis space were able to attract significantly higher volumes in the last five years. The overall transaction volume increased from 64m in 2016 to 979m in 2021 (YTD), being almost fifteen times as high.

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