The challenges of being a multi-state operator (MSO) in the cannabis space within the U.S. are more complex than almost any other industry. Since interstate commerce is essentially not possible for cannabis products, successful MSOs need to maintain distinct legal entities in multiple states, and many of the economies of scale national businesses depend on to provide consistent products and fuel profitable growth are mostly limited to achieving efficiencies in intrastate economics.
Despite these challenges, MSOs continue to extend their business into new states and ride the current wave of rapid legalization at the state level and easier access to investor capital under current market conditions. Existing MSO expansion continues to be a combination of new market entry through M&A activity and participation in new licensure rounds. At Global Go, we have seen a significant increase in both types of activity in the early days of 2021. Also, since the benefits to MSOs are more constrained under the current regulatory environment, we are not seeing any slowdown in single state operators continuing to grow their networks.
We believe the successful MSOs in the long term will not be restricted to just those teams able to skillfully navigate a myriad of existing expansion opportunities. The most successful MSOs will be those who have positioned their businesses, brands and supply chains to leverage the end of federal prohibition, continue to demonstrate social responsibility, and are able to rapidly extend their networks nationally and even internationally. While we have seen several publicly traded MSOs (Cresco, Curaleaf, GTI, Trulieve) exceed $100 million in quarterly revenues, those results will most certainly be dwarfed by the largest MSOs three to five years from now.