The U.S. cannabis industry is facing a persistent challenge — access to institutional capital. Despite the market’s robust growth, many cannabis companies struggle to secure the funding they need to sustain operations and expand. This is a key issue affecting valuation and hampering the sector’s growth, according to William Muecke, co-founding managing member of Artemis Growth Partners and a speaker at the upcoming Benzinga Cannabis Capital Conference.
Muecke emphasizes that the lack of access to traditional capital markets is a major obstacle for the U.S. cannabis industry. He clarifies that the problem isn’t with consumer demand, which remains strong. In fact, the legal cannabis market is projected to reach $60 billion in revenue by 2025. However, the industry’s financial structure, hindered by limited access to institutional investment, is hindering growth.
Muecke points out that the U.S. market is simply transitioning from illegal to legal consumers, but the lack of institutional capital is preventing companies from fully capitalizing on this shift. He believes that regulatory changes are crucial to attract institutional investors and unlock the industry’s full potential.
While the U.S. cannabis industry faces these challenges, Muecke expresses optimism about the European market, specifically in the medical cannabis sector. He emphasizes that Europe’s regulatory environment is significantly more favorable, with Germany already seeing a threefold increase in cannabis volume and continued growth expected.
Muecke believes that harmonized regulations, both within the U.S. and globally, are key to the long-term success of the cannabis industry. This would create a more stable and prosperous market for cannabis companies. He will share further insights at the Benzinga Cannabis Capital Conference in Chicago on October 8-9, where industry leaders and investors will gather to discuss the future of cannabis.
