On Jan. 6, 2017, CB Insights released a report on annual funding activity for private marijuana companies in 2016, as well as activity for the fourth quarter of the year. According to the report, deals made and dollars invested leveled off in 2016.
While CB Insights initially reported funding in 2015 at $215.2 million, the current report noted that the amended figure for 2015 is $225 million. With funding in 2016 hitting $220 million, this is a 9% decrease from 2015.
CB Insights initially reported 98 deals in 2015; however, the current report has amended that figure to 106. With 96 deals recorded in 2016, this is a 9% decrease from the previous year.
While deals made and dollars invested into private marijuana companies in 2016 may have dropped slightly from 2015, there were still several notable deals.
Privateer Holdings closed $40 million in convertible note funding, making it the largest deal of 2016, followed by Syqe Medical’s closing of $20 million from Philip Morris International and then MedMen’s closing of $15 million from Cap-Meridian Ventures.
In regards to the fourth quarter of 2016, funding hit $81 million across 25 deals, with Privateer’s $40 million funding deal constituting almost half of funding banked in Q4.