Shayanne Gal/ Business Insider
Read Business Insider's exclusive list of the top VC firms in the cannabis industry.
- Business Insider compiled an exclusive list of the top 12 venture-capital firms making deals in the cannabis industry.
- Subscribe to read the list here.
Ever since Colorado legalized cannabis for all adults in 2014, the cannabis industry has blossomed, with a multitude of companies competing to scale up as more states legalize the drug.
With so few institutional investors ready to write checks to cannabis companies - marijuana is still considered a Schedule I drug by the US federal government - the industry has given rise to a number of sector-specific firms that deeply understand the nuances of investing in such a highly regulated and fragmented market.
Last year, the total value of all venture deals in the cannabis space across the globe was just under $378 million, according to analytics firm PitchBook. By the beginning of October, that number nearly doubled, to $643 million. To put that growth in perspective, in 2012, the first year PitchBook had data available, there were only two deals in the cannabis sector - worth just $300,000.
According to some estimates, cannabis may become a $75 billion industry in the next few years.
These cannabis-specific funds mostly raise money from private investors or family offices that may have a higher risk appetite than the average pension fund. They get into top startups before the bigger players begin throwing their weight around, and can quickly adapt to shifting regulations and consumer sentiment.
To get a handle on who's cutting early-stage deals in the fledgling industry, Business Insider pulled data from PitchBook and reached out to the top venture-capital firms in the industry.
Subscribe here to read our exclusive story: The top 12 venture-capital firms making deals in the booming cannabis industry that's set to skyrocket to $75 billion »
And while you're here, read more of Business Insider's cannabis industry coverage:
- Hedge fund legend Leon Cooperman is investing in the marijuana industry - and it's another sign the sector is heating up
- Famous short seller Andrew Left is creating a cannabis fund. He explains why the market's not in a bubble, but does need to 'chill out'
- 'The new avocado toast': A former Coca-Cola and AB InBev executive reveals why every food and beverage boardroom needs to be talking about cannabis
- Some of the hottest companies in the booming cannabis sector are going on hiring sprees - and it shows how competition among the biggest players is ramping up
- The rising stars of marijuana's investment scene that everyone from Wall Street to Silicon Valley should know