According to Viridian Capital Partners, capital financing in the cannabis sector has declined by about 70% so far this year, compared to the same period last year.
The financial and strategic advisory firm said USD$2.6 billion has been raised by cannabis firms in the first 29 weeks of the year, down significantly from the US$8.9 billion raised last year.
Working capital has been hard to come by in the cannabis sector amid the COVID-19 pandemic, alongside general anxiety from investors in the space. The average deal size has also shrunk so far in 2020 at USD$14.8 million, compared to US$23.8 million last year, Viridian says.
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