April 16, 2015
A lot of the people I’ve interviewed in the legal cannabis industry keep telling me that Peter Thiel and Snoop Dogg were simply the first of many ‘dominos’ to fall when it comes to investing in the burgeoning market. In a similar vein, Ellen Huet of Forbes reported yesterday that Eaze, an on-demand marijuana delivery startup, has officially raised $10 million.
According to Huet, this funding is “a milestone many startups never hit – but for a weed startup, it’s almost unheard of”. She’s not wrong at all to say this either – Keith McCarty, CEO and founder of Eaze, is quoted in Huet’s article saying:
“It signals that technology services can be successful [in] the cannabis category…It also signals that regulatory landscapes are loosening up, and venture capitalists see the broader market continuing in that direction.”
It’s a major step forward for the legal cannabis market as more and more investors are seeing the monetary benefits of investing in different companies. In fact, a lot of people have likened the currently growing cannabis markets to the .com boom of the 90s.
Huet quotes Eaze spokeswoman Caroline Vespi on this very thought:
“The six months difference between when we raised seed to now – the investor sentiment has changed a lot…A lot of it has to do with Peter Theil’s announcement. It’s okay to talk about funding a weed startup, whereas six months ago it was a little dicey.”
Sure, investing in companies like this is risky, but I would counter that investing in any company is risky: after all, entrepreneurs are built for risk taking ventures. Sure, there might still be some bogus social stigma associated with the legal cannabis industry, but that’s quickly fading and as soon as more people realize how much money is to be made here it’ll all but evaporate entirely.
It’ll be exciting to see the next company that gets a similar investment, and how quickly that investment will follow. We’ll be sure to keep you up to date on all that’s happening in the legal cannabis market as it unfolds.
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