Cannabis equity fundraising is quickly reaching new heights. Analysis of Crunchbase data reveals that cannabis companies are seeing bigger checks coming from equity financing, and the number of spins appears to be shifting from seed rounds to later stage rounds.
News broke today that cannabis tech leader Dutchie has raised another massive round of funding. This $ 350 million Series D values the company at $ 3.75 billion and follows the company’s $ 200 million funding round starting in March 2021. Dutchie has raised $ 603 million to date.
Dutchie is on a growing list of cannabis companies raising big rounds in 2021. For example, Jane Technologies raised a $ 100 million Series C in August and Kadenwood closed a $ 50 million Series B. Other companies are turning to post-IPO stocks, such as MedMen. , which raised $ 100 million through a private placement. Weedmap’s parent company has made a $ 325 million investment alongside its PSPC.
In the first five months of 2021, 132 fundraising events for cannabis companies were raised, for an average of $ 15 million each. However, the intensity of funding has accelerated throughout this year. Over the past five months, cannabis companies have grown an average of $ 28 million on 73 fundraising events, an increase of 86%. This includes pre-seed investments through Series D, as well as post-IPO equity fundraising and equity crowdfunding.
Compared to 2020 levels, the average size of investments increased 165%, from an average of $ 7.5 million in 2020 to $ 19.9 million in 2021. 2021 months. were only 176 in 2020.
Investments are increasingly important at almost all stages of investment. According to data from Crunchbase, the average start-up investment for 2021 is $ 1.86 million, up 85% from the 2020 average size of around $ 1 million. Series B and Series C checks are up 128% and 154%, respectively, with average amounts of $ 18.96 million and $ 101.67 million. An exception to the trend: The reported size of Series A investments is down 25% year over year. Even if the general trend continues, there is no distinct reason why this particular step has fallen a little behind.
Cannabis remains an illegal substance at the federal level, but companies are finding new ways to grow in the face of increasingly strict regulations. Covid helped. At the start of the pandemic, dispensaries across the country were labeled as essential businesses and consumer acceptance soared. In the second half of 2021, more Americans are comfortable with cannabis than ever before, and that clearly includes investors.