Prominent VC firms that have warmed to cannabis include Founders Fund, started by PayPal co-founder Peter Thiel, which has invested in Privateer Holdings. Prominent Silicon Valley VCs 500 Startups, DCM Ventures, along with New York-based Great Oaks Venture Capital, have all backed Eaze, a medical marijuana delivery app that allows patients to order cannabis on demand.
Eaze is moving into recreational marijuana with $27M in new funding
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. Eaze has gone hard on marketing spend, 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 over the role in December 2017 explains his approach as just part of the Silicon Valley cycle to get ahead, “We are a tech startup…we’re investing in growth,” he told TechCrunch when asked about the high burn rate. “We’re investing the money now in what’s clearly going to be a very big market.”
CNBC Video - "Today is like Christmas for the cannabis industry which makes Eaze, Santa Claus"
"Uber for Marijuana" Startup Eaze Raises $13M, Becomes Most Funded Cannabis Startup in US
Weed on-demand startup Eaze inhales $13M in funding to grow into new markets
The “Uber for weed” startup Eaze has grown quite a bit over the last year and it intends to expand even more. To get it there, Eaze has closed on $13 million in Series B funding from Fresh VC, Doll Capital Management (DCM) and Tusk Ventures. Eaze launched in July of 2014 to help medical marijuana patients order cannabis on demand. It soon expanded to allow people to get a medical weed card in the state of California over the phone in under 10 minutes.