Cannabis equity fundraising is successfully grabbing attention and is able to hit new files. The analysis from Crunchbase concludes the cannabis companies are able to raise a much larger amount from equity financing, and of course, the number of rounds is shifting from starting phase to later-stage around.
According to the news in the market, the cannabis tech leader Dutchie is able to raise a massive financing round. The $350 million Series D values the company at around $3.75 billion. However, in March 2021, the company was able to raise a $200 million round. In total, Dutchie has successfully raised $603 million today.
Dutchie is one of the growing cannabis companies successfully raising huge rounds in the current year. For instance, Jane technology in August generated a $100 million series C, and Kadenwood raised a $50 million Series B. However, most companies are inclined towards post-IPO equity-like MedMen, which successfully generated $100 million from private investments. Weedmaps parent company raised a $325 million investment.
First five months of 2021, 132 funding events, especially for cannabis companies were generated that make around $15 million each. The financing activities have expedited the previous stats and have accelerated throughout this year. In the last five months, with over 73 funding events that make up to $28 million, companies are growing rapidly with an increase of about 86%. All the pre-seed investments are included through series D, post IPO equity fundraising, and equity crowdfunding.
When compared to the previous year, the investment size has scaled up to 165%, from an average of $7.5 million to $19.9 million in 2021. The number of funding events has also scaled up exponentially, with 205 funding rounds in the first ten months of 2021, which were only 176 throughout 2020.
Investments are increasing at an unprecedented rate. According to Crunchbase data, the seed-stage investment, particularly for 2021, is up by 85%, which makes around dollar 1.86 million when compared to 2020, which makes around $1 million. A series C and series B scaled up around 154% and 128%, respectively, which make around $101.67 million and $18.96 million.
Cannabis is still a federally illegal substance, but organizations are innovating novel ways to grow it in the ever-increasing regulatory landscape. Of course, the advent of Covid-19 has helped the sector. In the early pandemic, dispensaries across several regions were labeled as essential businesses, and there was a significant spike in consumer acceptance. However, in the second half of 2021, the American population became more comfortable with cannabis than ever before which clearly attracted many investors.