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Marijuana Businesses Are Seeking Investors for Expansion Projects


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Although investors are becoming more active in the marijuana industry, businesses still need deep pockets to maintain operations and state compliance. Some types of businesses in the industry struggle a little more for funding than others.

“The funding needs in this industry are strong, as there’s a huge influx of startups each year,” the Marijuana Business Factbook 2017 mentions.

Breakdown of funding need by business type:

  • Testing Labs – 60% looking now, 20% expect to seek funding later this year
  • Infused Product Manufacturers – 40% looking now, 15% will seek funding later this year
  • Wholesale Cultivators – 39% looking now, 11% plan to seek funding this year
  • Tech & Product Companies – 35% looking now, 13% plant to seek funding this year
  • Dispensaries and Rec Shops – 39% looking now, 5% to look for funding later in 2017
  • Ancillary Services Firms – 18% looking now, 6% will seek funding later this year

The Factbook also says, “Many existing companies are looking to expand locally and even across state borders as the industry evolves, which often requires a cash infusion.”

A multitude of factors play a role in a type of business requiring additional funding. In some cases, more supply than local demand is often a factor.

For cultivators, much of it comes down to efficiency, as the Factbook states: “Turning a profit comes down to a cultivator’s ability to produce high-quality products with an extreme level of efficiency, but the costs of building a facility to meet these needs are substantial. Many growers are also switching to or incorporating greenhouses and therefore need a substantial investment at the outset.”


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Arizona legalized marijuana for recreational use in November 2020. The law allows adults aged 21+ to purchase, possess and use cannabis. State-licensed cannabis dispensaries began selling recreational marijuana in early 2021. There are over 150 dispensaries in Arizona — a majority of them are in populous areas such as Phoenix, Tucson and Flagstaff. Recreational cannabis delivery services began operating in 2024.  


AZ Cannabis Updates