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Tuesday, September 24, 2019
Biontech and ADC Therapeutics are both heading towards substantial flotations, but it is hard to find evidence that bigger does better
Investors’ High Wears Off As Cannabis Funding Slows, Data Shows
Saturday, September 21, 2019
Despite the billboards and bubbler of attention for cannabis businesses, Tyler Autera, the co-founder and COO at Cannalysis, thinks it is one of the hardest times to grow a startup within the industry.
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“Regulation and compliance has brought on, in most cases, the need for larger amounts of capital from the start, which can be more difficult to come by,” he told Crunchbase News. “Expenses are higher for legal, licensing and compliance work that is now needed at the onset.”
Regardless, those complexities have brought more mature investment options.
“In the early days, [cannabis investment] was mostly angel investors/high net-worth individuals, small family offices, and small cannabis-specific VC funds,” Autera said. “Now, you see larger and more sophisticated players: large established VCs and institutional capital, coming into the space.” It means there are less people willing to make riskier investments, he added.