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Pot to Continue Growth in 2019: Analysts Predict $16 Billion Investment into Industry Next Year — 4 Things to Know

1. In 2018, investors put $10 billion into the legal cannabis industry in North America. That $10 billion was already two times more than what was invested in the previous three years combined. That number is expected to continue to grow in 2019 — Beau Whitney, vice president and senior economist at New Frontier Data, predicts that investors will put $16 billion into the pot market in the coming year. 

2. Whitney claims that as the marijuana industry continues to grow, investors will have more clarity and a higher incentive to invest. “Investors are getting much savvier when it comes to this space because even just a couple of years ago, you’d throw money at it and hope that something would stick. But now investors are much more discerning.”

3. Previously, investors, including big name corporations, were hesitant to invest large sums of money into the industry until more states began legalizing weed. Now, with 66 percent of U.S. states legalizing marijuana in some capacity, and more planning to make that move, investors are much more likely to dive into the industry. Even Coca-Cola, for example, has stated publicly that it has interest in joining the industry and just needs a few more states to legalize the product recreationally.

4. Additionally, to start 2019, Democrats will take control of the House and “want to use it next year to pass legislation that eases federal restrictions on the legal marijuana industry.” Accordingly, legislation allowing state-approved commercial cannabis activity under federal law would “open up banking for the marijuana industry nationwide and make it easier for cannabis companies to secure capital.” This, of course, would incentivize further investment into the industry.


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