5 Successful Cannabis Startups Earning Big
According to research firm Cowen & Co, the legal cannabis market in the United States, which was valued at $6 billion in 2016, is projected to grow to $75 billion over the next 12 years. It’s no surprise that investors are closely watching this sector and rushing to invest in projects with high growth potential. TechCrunch highlights several cannabis startups that have successfully attracted investments.
Eaze
Eaze, a cannabis delivery startup, has raised $51 million since its launch. Last year, the company reported a 300% increase in revenue and secured $27 million in funding. Eaze’s software helps consumers with a medical marijuana prescription find the nearest dispensary and place an order. The startup ensures that cannabis is delivered right to the customer’s door within an hour.
PharmaCann
PharmaCann has not received venture capital investments—according to the company, industry participants still face challenges accessing funding. However, Innovative Industrial Properties (IIPR) found a way to invest $30 million in PharmaCann by entering into a sale-leaseback agreement with the cannabis production and processing pharmacy chain. PharmaCann stated that the investment will be used for research and hiring new employees.
LeafLin
LeafLin, a New York-based startup, has created a platform for legal cannabis vendors and has raised $750,000. The platform allows entrepreneurs to manage their supply chains and, according to the company, save money in the process. Transactions can be completed directly on the platform. The founders of LeafLin stated that their goal is to lower the cost of cannabis for end consumers and contribute to the development of the legal cannabis market.
Anandia Labs
Canadian startup Anandia Labs positions itself as a company that can “process, extract, test, import, and export cannabis in any form.” The company uses technology to research and develop new cannabis strains. Anandia Labs has raised $13.4 million to continue working “for the benefit of producers and consumers.”
Canndescent
Canndescent has raised $16 million. The startup offers customers beautifully packaged boxes containing five different cannabis strains, each designed to suit a specific mood, according to the company.
At the end of February, the cannabis industry saw its first “unicorn”—the startup MedMen, which focuses on retail cannabis sales. The project attracted $41 million in funding and reached a $1 billion valuation.