Wed, Aug 21, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Investment in sin industries grows considerably over the past five years

Friday, July 19, 2019

Laxman Pai, Opalesque Asia:

Preqin in its Insights said that investment in sin industries has grown considerably over the past five years.

"Perhaps the most vociferous growth has occurred in the cannabis industry, which boomed after the drug was legalized at the state level in the US and scientists published further research into its medicinal properties," it said.

The increase in average deal size is indicative of a rise in valuations and, in turn, investors' confidence in the cannabis market: the average size of venture capital deals in the cannabis sector grew by a factor of eight from 2017 to 2018.

Jefferies believes the global cannabis industry could reach $130bn in size by 2029.

Vice Ventures, a New York-based fund manager, recently held a $25mn first close for its inaugural fund which will invest in 'vice' industries such as cannabis, gambling, and sex-tech - all atypical industries for traditional venture capital investors.

When Vice Ventures received backing from high-profile investors in the shape of Bradley Tusk and Marc Andreessen (co-founder of Andreessen Horowitz), then, the direction of venture capital investing swerved.

ESG and ethical investing have come under the microscope in recent times, with high-profile 'Social' indices and ETFs actively excluding companies within the weapons, gambling, alcohol and tobacco sectors. This focus seemingly juxtaposes with the cannabis industry, especially the recreational aspect......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Regulatory: Coming to America: US instigates major study into Mifid II[more]

    From IR Magazine: In the latest impact of Mifid II coming to America, a major investigation concentrating on research for small issuers has been successfully instigated by US politicians, on the back of the US coming closer to the European regulation. The US lower House of Congress, the House o

  2. Study: Quantitative investment strategies: Theory vs practice[more]

    From All About Alpha: When pitching an investment product with a backtested history the frequent response from potential investors is that they have never seen a bad backtest. Naturally this is true as there is no point in marketing a strategy with a poor backtest as investors have zero interest in

  3. 6 out of 10 investors seek to move assets from UK amid brewing of perfect storm[more]

    Opalesque Industry Update - Six out of 10 investors are now actively seeking to move assets out of Britain as a perfect storm looks set to hit the UK economy, reveals a new poll. The survey of more than 740 clients carried out by deVere Group, one of the world's largest independent financial

  4. Investing: Hedge funds take record short bets against Aston Martin, Investor sentiment reaching reversal point, says Lipper,It's time to buy into this long-suffering strategy, Investors, 'starved for returns,' flood private markets in search of high-growth opportunities[more]

    Hedge funds take record short bets against Aston Martin From FT: Hedge funds have taken record short positions in the debt and equity of Aston Martin, betting that the luxury carmaker will continue to struggle after one of the most disastrous stock market debuts of recent years.

  5. Crayhill Capital Management closes $100M transportation financing in Mexico[more]

    Bailey McCann, Opalesque New York: Private credit shop Crayhill Capital Management is providing a senior secured credit facility of up to $100 million to Mutuo Financiera, a vehicle fleet leasing company focused on clean energy passenger transportation in Mexico. Crayhill Capital Management is l