There is a gold rush of sorts occurring right now in America, but instead of people chasing fortunes in precious metals, they are seeking to make it rich in the marijuana industry. Marijuana reform is sweeping across America, and with those reforms come business opportunities. Long gone are the days when the marijuana industry only operates in the shadows. The next great American industry is here to stay, and is growing rapidly.
That rapid growth has caught the attention of investors, who are seeking to invest in good ideas (in theory!) and line their pockets in the process. Last year saw investment growth in the industry rise to a new high. Per Marijuana Business Daily:
In the 2013 and 2014 fiscal years, investments in the North American cannabis industry hit $104.5 million, according to Inc.com, which based its report on research from CB Insights.
Much of that growth came last year, when investments rose 941.5%, according to the piece.
CB Insights recorded 60 investment deals involving cannabis-related companies, the biggest of which was $75 million raised by private equity firm Privateer Holdings.
With just about every state in America pursuing some type of marijuana reform, business opportunities will continue to present themselves. I don’t expect investments in the marijuana industry to slow down anytime soon, and 2015 could prove to be the biggest year for investment to date. If you are looking for investors, know that they are out there. If you are an investor, know that there are a lot of people out there ready to pitch you their idea. But it’s worth noting to both sides that there are a lot of sharks and scammers out there, so make sure to do your homework. I have seen a lot of people get ripped off on both sides of the equation in the last couple of years.