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Eaze is moving into recreational marijuana delivery with $27 million in new funding

Eaze is moving into recreational marijuana delivery with $27 million in new funding
From TechCrunch - September 14, 2017

The cannabis industry has lit up in the last year, including weed delivery startup Eaze, which just raised $27 million in Series B financing and claims a 300 percent year-over-year increase in gross sales.

But the weed delivery startup has come under scrutiny recently for burning through at least $1 million in cash per month. In contrast, other software-based pot delivery startups like Meadow have played it lean, focusing more on improving the software and logistics.

Eaze has gone hard on marketing spend and using aggressive growth tactics and burning through the $24.5 million it had previously raised in VC cash.

New CEO of the company Jim Patterson, who took overthe role in December 2017 explains his approach as just part of the Silicon Valley cycle to get ahead, We are a tech startupwere investing in growth, he told TechCrunch when asked about the high burn rate. Were investing the money now it whats clearly going to be a very big market.

Part of the pop in the pot delivery industry is due to tech finally meeting the needs of the medical marijuana community in the the state of California, where Eaze operates. Eaze uses its proprietary software to help consumers with a medical marijuana license in the state buy pot from local dispensaries and then delivers those purchases to their door.

However, California is set to begin issuing licenses for the cultivation and selling of the plant for recreational use at the beginning of 2018, which will open up a whole new revenue stream for Eaze and others in the space.

Colorado, a state where recreational use of the drug has been legal for a couple of years now, is reportedly pulling in nearly$100 million in pot sales per month and the marijuana industry is slated to balloon to a $24 billion dollar business by 2025.

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