Cannabis Products

Step into the flourishing sector of cannabis products—where sustainability and wellness bring innovation into the cannabis field.

At the forefront of the greener future

The cannabis products industry is promising and profitable. Growing legalization and changing customer preferences are fueling its market potential. Of course, VCs could dole out far bigger tickets, but in terms of the current economic situation, the investor interest remains relatively high.

Why it matters:

The industry ensures a favorable environment for securing cannabis funding and offers significant opportunities for startups to grow and succeed:

  • Specialized cannabis strains
  • Cannabis-infused products
  • Health and wellness products
  • Cannabis cosmetics
  • Pet products

Between the lines:

Yes, the cannabis products industry is a highly lucrative space. Yet, funding hurdles, regulatory uncertainty, and stigma may put the brakes on a cannabis startup’s progress.

We’ve worked with numerous cannabis product startups, so our team knows what it takes to build a successful and investor-attractive business in this landscape

$2B+
Funds attracted
600+
Startups boosted
80+
Verticals explored

What we do:

We’re a one-stop shop for fundraising assistance, outsourced M&A advisory, business growth consultancy, and impeccable pitch deck design.

Go deeper:

Check out our cannabis products market research to discover industry trends, potential startup risks, and crucial tips on getting funding.

14X growth
The cannabis products market is set to hit a whopping $610.2 billion by 2032.

 

147M+
The number of people consuming cannabis globally.

Driven by legalization, therapeutic applications, and shifting public perceptions
30+

Countries allow medical cannabis and legal recreational use.

6/10

Individuals consider price and THC percent while purchasing cannabis products.

10%+

In consuming alternative cannabis products like edibles, beverages, vapes, and pre-rolls.

VENTURE LANDSCAPE

In 2022, cannabis products startup funding reached $400 million

Key verticals where funding flows:

  • Cannabis-infused consumer products
  • Technology and software solutions
  • Health and wellness
  • Consumer education and content platforms

Leading cannabis investors we worked with

Write to us to know more

Challenges of cannabis product startups

The huge market potential of the cannabis products industry comes with a set of significant obstacles.

Funding hurdle:

Cannabis startup funding has plummeted. It’s not because cannabis VCs lost interest in the field but because they started searching for new options.

Why it matters

Such turbulence makes securing the necessary cannabis venture capital challenging for startups:

  • Landing prices are higher for the cannabis industry, with inflation making everyone act carefully
  • The failure of the SAFE Act turns banking into a minefield for newcomers
  • Investors have started focusing more on psychedelics, considering them less risky initiatives

What it takes:

To survive in the cannabis market, startups need to:

  • Have a solid business plan and financial strategy
  • Build a strong team
  • Pitch to the right investors with a persuasive and compelling cannabis pitch deck
  • Develop a unique market proposition
  • Network with other cannabis businesses

Regulatory maze:

In many regions, the legal status of cannabis is a moving target. Laws vary from place to place and change rapidly.

Why it matters

The regulatory uncertainty of cannabis makes it hard for startups to operate and plan effectively. And it leads to:

  • Investors hesitation
  • High compliance costs
  • Problems with on-time launches
  • Legal consequences

What it takes:

To mitigate this challenge, cannabis startups should:

  • Consult with legal experts
  • Design flexible business models
  • Invest in compliance infrastructure
  • Diversify product lines and global outreach

Stigma presence:

Not all investors and consumers have a soft spot for cannabis products. Historical legal prohibitions, coupled with cultural stigmatization, are the reason for it.

Why it matters:

Sigma surrounding cannabis may lead to:

  • VCs concerns
  • Banking restrictions
  • Marketing limitations
  • Customer disapproval
  • Partnership barriers

What it takes:

To overcome cannabis-associated stereotypes, startups need to:

  • Be transparent about product sourcing
  • Comply with all the necessary regulations
  • Invest in branding and marketing
  • Communicate the value and benefits of cannabis to the public

Quality control:

Managing strict quality checks and supply issues is a must for cannabis startups.

Why it matters:

A failure to do this may:

  • Increase costs and reduce margins
  • Cause pricy product recalls and legal issues
  • Lead to losing market share

What it takes:

Addressing this problem requires:

  • Implementing advanced tracking systems to monitor the product journey and ensure compliance with all the standards
  • Forging cooperation with third-party labs to conduct regular testing
  • Investing in agricultural tech to enhance yield
  • Building relationships with diverse suppliers to mitigate the risks of supply chain disruptions

FAQs

How attractive is the industry to potential cannabis investors?

The cannabis industry is still highly interesting for investors. Despite a small dip, the future looks bright for this sector.

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

Securing cannabis funding is challenging in today’s volatile economy. Still, startups with a strong business plan and financial model, coupled with a compelling pitch deck, stand a solid chance of winning VC investment.

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

On average, we handle documentation in 2-3 weeks. But sometimes it might take around a month. Feel free to ask for more information.

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

Some presentations lack a coherent investment narrative, dampening the overall impact and steering investors towards projects that showcase more clarity and promise. Second, many fail to address the pivotal ‘Why now?’ question, presenting a poor go-to-market strategy and business model. Finally, most cannabis product pitch decks fail to demonstrate traction. Like this, investors aren’t sure if everything you’re going to do will work.

How competitive is the cannabis products market?

The cannabis market is getting crowded fast, thanks to its rapid growth, more favorable regulations, and changing customer views. This makes it easier for new businesses to jump in. Plus, there are lots of established players like Curaleaf Holdings and Tilray Brands.

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

We help investment funds dig deep into prospective cannabis products 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 product M&A support?

Absolutely! We can help with your M&A goals, whether in the cannabis products space or beyond. We take care of everything, from finding potential deals to evaluating them and ensuring smooth collaborations after the deal is sealed.

Do you make intros to cannabis VCs?

Of course! We assist you in establishing connections with the ideal cannabis products 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 products market?

Yes, we do! Our analysts ensure customized cannabis products market research. As this segment is multifaceted, we pay attention to every detail, including competitive analysis and industry reports. Plus, we utilize reliable proprietary data sources to help you wrap your head around the cannabis scene.

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

Our experts provide growth and fundraising support for cannabis startups, guiding them from their initial Pre-Seed phase right up to Series C and further.

Have a cannabis products project in mind? We are here to help

From end-to-end fundraising support to M&A advisory and growth hacking, Waveup will help catapult your cannabis products project to new heights. Leave your email, and let's talk!

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