Over the first five weeks of 2018, the cannabis industry mega ballooned to a whole new high when it registered $1.23 billion in investments.
The reap in the benefit for the cannabis industry was a far cry if compared to the same period in 2017, which had only $178 million investment, Benzinga reported from the Viridian Cannabis Deal Tracker.
The 600 percent growth, which was accumulated in the month of January alone, almost summed up the total investment the cannabis industry registered in the whole entirety of 2016.
The main catalyst behind this huge increase in Canada, which will be the first developed nation to legalize recreational marijuana this summer. Canada is also going to be the second country legalizing cannabis after Uruguay.
“Investments in cultivation and retail this year have been driven predominantly by the Canadian players,” Viridian Capital Advisors’ Vice President Harrison Phillips said.
The lion share of these investments went to cultivation and retail companies.
The cannabis industry in the first five weeks of 2018, witnessed 65 capital raises, more than double from last year. Nine of these capital raises surpassed $50 million, and 87.6 percent of these raises were equity-backed, up from 70 percent last year.
The average raise size was $19 million, in comparison to $5.9 million last year. About 72 percent of the raises were conducted by publicly traded companies, down from 76 percent last year.
Overall, private companies received more than $300 million, six times what they got in the first five weeks of last year, Benzinga reported.