Cannabis Biotech

Explore the world of cannabis biotech—where science and nature meet to cultivate wellness.

At the edge of a healthier tomorrow

Cannabis biotech industry stands at the forefront of revolutionizing the way cannabis is used for medical and therapeutic purposes. Advancements in R&D, consumer demand, and increased legalization drive the sector’s growth. Plus, heightened investor interest (investments in biotech/pharma grew in 2022) makes the industry’s future increasingly promising.

Why it matters:

The significant growth market and investment potential creates an abundance of opportunities for cannabis biotech startups to leverage:

  • Pharmaceutical collaborations
  • Genetic engineering
  • Synthetic cannabinoids
  • Delivery system innovation
  • Customized patient solutions
  • Veterinary applications

Between the lines:

Even a lucrative space as cannabis biotech has some obstacles to be aware of. Thus, startups should keep an eye on competition, shifting regulations, and market entry issues, as well as find ways to attract more funds.

With vast experience helping cannabis biotech startups, our Waveup expert team knows what makes companies succeed and shine for investors

$2B+
Secured in funds
600+
Ventures advanced
80+
Industries explored

What we do:

We assist in securing the necessary venture capital, creating persuasive and insightful cannabis biotech pitch decks and solid business models, and pinpointing the most beneficial M&A opportunities.

Go deeper:

Wrap your head around cannabis biotech market research and discover the latest trends, key industry insights and challenges, and the paths to attract investment.

63x growth
The cannabis biotech market is expected to see a staggering 63x growth.

 

450+
Active and completed cannabis-based clinical trials in 2022.

Fueled by growing legalization, tech advancements, and increasing adoption rates
147M+

The number of cannabis consumers worldwide.

20+

Countries allow the use of medical cannabis.

100M

Biotech/pharma were the areas with the most investment within the cannabis industry in 2022.

VENTURE LANDSCAPE

In 2022, cannabis biotech startups secured $100M in funding

Key verticals:

  • R&D
  • Genetic engineering
  • Bioprocessing
  • Cannabis cultivation technologies

Leading cannabis biotech investors we worked with

Write to us to know more

Challenges of cannabis biotech startups

Navigating hurdles is one of the keys to business success.

Regulatory maze:

Cannabis biotech is a relatively new industry. And even despite growing acceptance of cannabis, it still remains a legal issue globally.

Why it matters

Navigating cannabis biotech regulations is akin to a labyrinth, with each wrong turn leading to:

  • Slowed product development
  • Scaling hurdles
  • Increased compliance and legal costs

What it takes:

A couple of solutions that can help startups tame a regulatory beast:

  • Onboarding experts who are proficient in cannabis laws and regulations
  • Cooperation with regulatory bodies
  • Building partnerships with companies in regions with more favorable legal landscapes

Competition moats:

The hype around cannabis biotech attracts top pharmaceutical companies with deep pockets, significant expertise, and a strong, positive brand image.

Why it matters

These established players, with their extensive resources and reputation, get an advantage over cannabis biotech startups, making it difficult for the latter to:

  • Secure necessary venture capital
  • Attract and retain professionals
  • Bring their products and services to market

What it takes:

To compete with industry giants, cannabis biotech startups need to:

  • Focus on a niche market
  • Develop a unique value proposition
  • Craft solid business and financial models
  • Partner with established players

Market access:

Many consumers aren’t turned off by cannabis. Yet, most people are still unaware of all the benefits cannabis biotech solutions provide.

Why it matters:

Lack of knowledge and understanding can hinder market access, fundraising, and consumer adoptions, resulting in:

  • Resistance from traditional healthcare providers to recommend cannabis-based solutions
  • Trust issues
  • Problems with product market positioning and marketing
  • Difficulties with raising proper venture capital

What it takes:

To address this challenge, cannabis biotech startups should:

  • Invest in educating the public and healthcare professionals
  • Provide robust scientific evidence of product efficiency
  • Engage in community outreach to fight against stigma

Fundraising race:

The volatile legal landscape renders investors cautious. And federal regulations make banks hesitant about lending money to cannabis businesses.

Why it matters:

It all hinders startups’ access to capital. And lack of proper financing makes it hard for them to:

  • Launch new products
  • Scale their business
  • Onboard new staff
  • Gain a competitive edge

What it takes:

A fundraising game consists of some crucial steps cannabis biotech startups should take:

  • Building a strong case for investment with a robust business plan, financial model, and clear value proposition
  • Pack these insights into a visually appealing and persuasive cannabis biotech pitch deck
  • Explore strategic partnerships with other companies
  • Leverage various funding sources

FAQs

How attractive is the industry to potential cannabis investors?

Investors are highly interested in the cannabis biotech sector, with market and venture capital forecasts proving it. Plus, in 2022, biotech/pharma turned out to be investors’ darlings among all the other cannabis segments.

If you are a cannabis biotech startup, how easy is it to raise funding today?

Despite investors’ enthusiasm, it may still be hard for cannabis biotech startups to raise funds today. Yet, a robust business plan, a strong team, and an appealing pitch deck may become your golden ticket.

How long does it take to create a pitch deck and financial model for a cannabis biotech startup?

Normally, it takes our team about 2-3 weeks to complete all necessary documents. But in some cases, it could take up to a month. Get in touch for further details.

What are the key mistakes cannabis biotech startups make in their pitch decks?

Many cannabis biotech pitch decks don’t have a comprehensive investment narrative. Some founders miss adding information about their market choice, team expertise, and competition analysis. Plus, they overdose their pitch decks with medical concepts and data, charts, and tables. And investors are more interested in the project’s viability and investment potential rather than in loads of irrelevant numbers and terms.

How competitive is the cannabis biotech market?

The cannabis biotech market is highly competitive as more and more companies are entering the scene with innovative products and solutions. Plus, the sector attracts the interest of top pharmaceutical companies, making it more difficult for newcomers to stand out.

What services do you provide for investors looking to invest or already investing in cannabis biotech?

We help investment funds dig deep into prospective cannabis biotech projects through comprehensive due diligence, ensuring they back profitable initiatives. Additionally, we roll out full-fledged fundraising support for our partner fund’s associated companies.

Do you provide cannabis biotech M&A support?

Absolutely! We provide support for your M&A objectives, whether within the cannabis biotech field or other sectors. Our services encompass everything from the initial deal search and valuations to due diligence and collaboration after the deal is completed.

Do you make intros to cannabis biotech VCs?

Of course! We assist you in establishing connections with the ideal cannabis biotech venture capitalists. Initially, we evaluate your project based on the team structure, product, and the capital you intend to raise. Then, we steer you in collaborating with the VCs, ensuring a fruitful relationship both during and after the negotiation process.

Do you have available data or research to purchase on the cannabis biotech market?

Absolutely! Our analysts provide customized market intelligence on the cannabis biotech market, including industry reports, competitive analysis, and market research to set you up for success. We leverage reliable proprietary data sources to help you get a full grasp of the cannabis biotech landscape, including things like the market’s size, diversity, and competition.

Which growth stage of companies have you worked with in the past?

Our team offers growth and fundraising help to cannabis biotech startups at every stage of their growth journey, from the Pre-Seed stage all the way through to Series C and beyond.

Venturing into cannabis biotech? You're in the right place

Leverage Waveup's unmatched expertise in fundraising, M&A advisory, and growth hacking to take your project to the next level. Share your email, and let's discuss how we can help!

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