Cannabis startups in Europe are facing a harder time raising capital amid recession fears and sinking stock markets, but that could ultimately help the industry.
“This period will be really good for clearing out those who were just trying to make a quick buck,” said Alastair Moore, the founder of Hanway Associates, a research firm focused on cannabis. “That’s a good thing for the sector.”
Startups likely to survive include those that have already built strong, sustainable business models, according to Moore. That will help them keep winning over investors who are becoming more cautious, he said.
Despite this doom and gloom, executives and investors expect funding for medical cannabis to be resilient as more countries allow the use of cannabis for health purposes. Plus, people usually cut back on discretionary purchases before medicine.
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