Indeed, it looks like startups are expending into new sectors. 30 new startups have entered the cannabis sector this quarter compare with only two during Q1 2015 quarter. However, there are not yet many active investors in the space.
Despite being an industry in regulatory flux, investors continue to ramp up their activity in the legal cannabis industry. Q4’15 was a record for deals to startups in the space, with nearly 30 in the quarter. This is up from just 2 deals in the same quarter just two years ago. Funding also passed $65M, the second-highest funding quarter since the peak of $94M in Q1’15, which included the giant $75M financing into Privateer Holdings, which is a private equity firm focused on legal cannabis.