The U.S. cannabis industry is facing a persistent roadblock — access to institutional capital.

Despite the market’s growth, many cannabis companies struggle to secure the financial backing needed to sustain operations and expand, according to William Muecke, co-founding managing member of Artemis Growth Partners and upcoming Benzinga Cannabis Capital Conference speaker.

"The biggest issue for valuation and for companies to be repriced multiple lines in the sector is the involvement in institutional capital," Muecke said in a recent interview.

He noted that while the industry continues to grow, the lack of access to traditional capital markets remains a significant obstacle.

Struggles with Securing Capital

Muecke highlighted that the problem isn’t with consumer demand but the industry’s financial structure. He pointed out the cannabis market is expected to reach $60 billion in legal revenues by 2025, yet many companies are struggling due to the lack of institutional investment.

"The issue has not been the business or the demand from the market. It’s a very simple conversion of illegal consumers moving into legal consumers," Muecke said. However, he stressed that until regulatory changes allow institutional investors to enter the cannabis market, companies will continue to face a challenging environment.

European Market Offers a Brighter Future

While the U.S. cannabis market faces financial challenges, Muecke expressed optimism about the European market. He emphasized that the regulatory environment in Europe is more favorable, particularly in the medical cannabis space.

"Europe is a completely different environment than the U.S., and we are super positive on Europe," Muecke said, noting that volumes in Germany have already tripled and are expected to continue multiplying.

Regulatory Harmonization as the to Success

Muecke believes that regulatory harmonization, both within the U.S. and internationally, is essential for the long-term success of the cannabis industry.

"The key to all of this is harmony on the regulatory environment… within the U.S. and internationally," he said. He stressed that aligning regulations across jurisdictions would create a more stable and prosperous market for cannabis companies.

Muecke will share more insights at the upcoming Benzinga Cannabis Capital Conference, where industry leaders and investors will gather in Chicago on October 8-9 to discuss the future of cannabis.

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