The cannabis market was in the midst of a correction when the COVID-19 crisis hit and could emerge stronger than ever.
After a breakthrough period of growth, cannabis startups entered 2020 with depressed values and an uncertain future. Now, with millions sheltering in place, many companies are seeing unprecedented demand and growth opportunities as many states classified the industry as an essential business.
TechCrunch surveyed top investors focused on the cannabis market to gather their thoughts on current trends and opportunities. The results paint a stunning picture of an industry on the verge of breaking away from a market correction. Our six respondents described numerous opportunities for startups and investors, but cautioned that this atmosphere will not last long.
- Sean Stiefel, CEO, Navy Capital
- Matt Hawkings, Founder/Managing Partner, Entourage Effect Capital
- Karan Wadhera, Managing Partner, Casa Verde Capital LLC
- Larry Schnurmacher, Managing Partner, Phyto Partners
- Mitch Baruchowitz, Managing Partner, Merida Capital Partners
- Morgan Paxhia, Managing Director, Poseidon Investment Management
Three key takeaways
Cannabis is an essential business
Per the investors in our survey, most see the the pandemic as a turning point for cannabis thanks to increased demand and the industry’s designation as an essential business. Sean Stiefel, CEO of Navy Capital, notes that states will look to cannabis to help resolve budget deficits and said his firm is especially excited for legalization in New York, New Jersey, Pennsylvania and Connecticut.
“Cannabis went from illegal to essential in about two weeks flat,” said Matt Hawkins of Entourage Effect Capital. “Cannabis is now listed right alongside hospitals, doctors, grocery stores, gas stations and fire departments as an essential service.”
May 19, 2020 at 09:24AM
via https//www.brucedayne.com/
Matt Burns, Khareem Sudlow
