The Top 15 Cannabis Startups By Funding Have Raised $3 Billion Without Going Public

By Natan Ponieman and Javier Hasse.

For many people, investing in cannabis has become tantamount to buying shares of publicly-listed companies like Canopy Growth (NYSE: CGC), Curaleaf (OTCQX: CURLF) or Tilray (NASDAQ: TLRY).

However, a substantial number of well-known privately-owned companies in the cannabis space continue to raise capital through private equity funding and have not listed their shares in public stock exchanges.

While going public is an effective method for raising capital, it’s not necessarily the ultimate goal for every private company or startup. Releasing shares in a public exchange can sometimes become an operational nightmare, requiring entire teams to deal with filings and public disclosures.

Additionally, selling part of a company to the public can dilute shareholder value and limit the management team's freedom to make decisions.

For these reasons, many companies decide to remain private if they can continue to secure capital through existing revenue or private financing.

Below is a list of the top 15 privately-held cannabis, CBD and hemp companies by total funding, according to Crunchbase data.

Pax Labs – Total Funding: $541,699,995

Pax Labs is a manufacturer of electronic vaporizers with an eye on the premium consumer market. The company produces several top-tier vaping products for cannabis consumers. PAX devices are sold in select states across the US, Canada and retail stores throughout select European markets.

Investors include Fidelity, Poseidon Asset Management, Tiger Global Management, Tao Capital Partners and Sands Hill Angels.

Parallel – Total Funding: $355,740,491

Parallel is a vertically integrated, multi-state cannabis company with operations in Pennsylvania, Texas, Illinois, Florida and Nevada. The company operates approximately 50 locations nationwide, including 42 retail …

Full story available on Benzinga.com

Parallel is a vertically integrated, multi-state cannabis company with operations in Pennsylvania, Texas, Illinois, Florida and Nevada. The company operates approximately 50 locations nationwide, including 42 retail …

Full story available on Benzinga.com

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