4 investors discuss prospects for the US cannabis market in Q3 2022 – TechCrunch

Cannabis is still far from being legal at the federal level in the US, but space startups – and their investors – have not been deterred. In fact, many go through an arduous journey because they see the long-term potential and opportunity.

To understand where the cannabis market is headed, we spoke to four investors who have been very active in supporting cannabis-related startups in the country. And deflation or not, seems like a good time to invest in companies that operate at the back end And Those who deal with the plant directly.

Emily Paxhia, managing director at Poseidon, said her company believes there is a benefit in investing in both subsidiaries and plant-related businesses. “We have an open perspective on how the market works, and feel that our approach opens up more opportunities for revenue generation. Investing in a plant contact or operational business can enrich future investment around ancillary companies or vice versa.”

However, some types of cannabis companies are more attractive to specialized investors. “Due to the regulatory hurdles surrounding companies affecting factories, investing in additional business has also provided us with an opportunity to attract more traditional investors into the space,” said Uni Mayer, partner at Casa Verde Capital.

Public investors have always had a turbulent relationship with cannabis. After a period of curiosity for the space, the interest appears to have subsided, and general market problems have not helped.

However, the general consensus appears to be that this lack of enthusiasm is temporary. For one, some limited partners are eager to buy dipping. Matt Hawkins, her managing partner, said Entourage Effect Capital was seeing this closely. “We have many new investors in our third fund who see opportunity because valuations are at low levels,” he said.

In the long term, niche cannabis investors will expect more traditional capital to see the opportunity for what it is. For Managing Partner and Co-Founder of Highlands Venture Partners, Jacqueline Bennett, “It is impossible not to see the opportunity after being immersed in the industry and being exposed to the endless possibilities of both factory and resulting innovation across sectors.”

Read the full survey to get an inside look at why these investors continue to be optimistic about cannabis, where to bet on it, how best to view it and more.