Near-term growth in the cannabis sector will be driven by medical marijuana and industrial hemp, not the recreational market, according to German partners who recently announced an investment deal.
CANSOUL Fund, a specialized cannabis equity fund, said it shares that market outlook with SYNBIOTIC SE, an alignment that underpins its recent acquisition of a stake in the company through a cash capital increase.
Company executives said the investment reflects a shared view that healthcare demand and environmental policy—not consumer retail—will shape the industry’s next phase. Both sides described the deal as the beginning of a long-term partnership.
“Combined with market leadership in industrial hemp and a management team with deep regulatory expertise, SYNBIOTIC offers an attractive risk-return profile,” said Daniel Stehr, Founder of the CANSOUL Fund.
Big in hemp
SYNBIOTIC’s portfolio holds considerable assets in industrial hemp and CBD operations across Europe, spanning cultivation, processing, branded consumer products and B2B supply. The group has pursued a buy-and-build strategy focused on vertically integrated hemp value chains, including food, wellness and industrial applications.
CEO Daniel Kruse is a long-standing figure in Europe’s industrial hemp sector, having built and operated hemp-focused businesses well before the current wave of cannabis reform. That legacy, the company said, positions SYNBIOTIC to capitalize on policy-driven demand for sustainable raw materials, climate-aligned products and regulated CBD markets.
The company views industrial hemp as a structural growth market tied to environmental objectives, including renewable materials, carbon reduction and agricultural diversification—factors it expects to support steady expansion independent of recreational cannabis timelines.
Medical focus
Alongside hemp, SYNBIOTIC operates regulated medical cannabis assets, including an import license and GMP manufacturing authorization. The group also holds a stake in GOC Nexus, which owns a patented cold plasma process used for GMP-compliant sterilization of medical cannabis—a technology SYNBIOTIC describes as a quality and safety advantage.
In a joint statement, Kruse and Stehr said medical cannabis represents a nearer-term commercial opportunity than adult-use markets, driven by healthcare adoption, reimbursement frameworks and physician prescribing rather than retail hype.
Long view
And while Germany can look forward to “significant developments” in cannabis and hemp markets, they cautioned against expectations of a fast recreational rollout. “Those expecting a rapid ‘coffee shop boom’ are likely to be disappointed,” according to the statement.
The companies said they see commercial adult-use cannabis emerging over the next five to ten years, with medical cannabis and industrial hemp expanding first based on healthcare trends and emerging environmental policy.
CANSOUL strategy
CANSOUL is a specialized equity fund focused on the global hemp and cannabis value chain, with investments spanning cultivation, research, extraction, technology, distribution and pharmaceutical development. The fund invests across industrial hemp, CBD and medical cannabis, and selectively in recreational markets where legally established, with an emphasis on infrastructure, licensing and long-term market fundamentals.