HIGHER CAPITAL
 

The cannabis industry in the United States, currently valued at an impressive $33.5 billion and projected to reach $41.5 billion by 2025 according to New Frontier Data, presents an exhilarating prospect. This growth is further accelerated by the regulators' concerted efforts to dismantle the $73.5 billion illicit market, propelling the legal market toward a remarkable 12.84% 5-year Compound Annual Growth Rate (CAGR) from 2023 to 2028.

 

What truly excites us, however, are the intricate barriers to entry that have rendered this industry a tapestry of untapped opportunities. The sector, marked by regulatory intricacies and intensified competition, is emblematic of one of the most thrilling and complex markets to navigate. In 2020, despite witnessing over $2.6 billion in venture capital funding in the U.S. cannabis market, as per PitchBook data, the bulk of these investments flowed into the acquisition of overvalued cannabis assets in technology and retail. This phenomenon inadvertently paved the way for a dichotomy of entrepreneurs within the industry—those from the venture capital/private equity realm with limited cannabis experience and legacy operators unaccustomed to the rigors of efficient business operations. Neither faction anticipated the oversaturation and ensuing surplus supply, culminating in the forced sale of assets.

 

In response to this unique landscape, Higher Capital was conceived in 2020. It emerged as a collaboration between legacy cannabis entrepreneurs, private equity partners, and real estate pioneers. Our mission: to construct a cannabis fund that invests in and revitalizes distressed assets, skillfully packaging them into a diversified portfolio to deliver attractive opportunities for investors, positioning ourselves to go public or be acquired when federal legalization is passed.