Sunday, November 27, 2022

U.S. Cannabis startup raises $100 million after rapid growth

Cannabis startup

Cannabis e-commerce startup Jane Technologies has raised $100 million in a financing round organized by Honor Ventures.

Not only did the million-dollar startup utilize e-commerce giant Amazon to its advantage, it embodied the identity of the friendly neighborhood dispensary that offers cannabis online.

Jane Technologies currently makes up 20 percent of all legal cannabis sales in the United States.

The current total amount raised since its founding in 2015 is $130 million.

The additional funds will be used to grow its online presence and its team. Users of Jane Technologies will soon be able to experience new features and product offerings.

Sales racked up quickly once the world entered a global lockdown. Jane Technologies’ internal numbers are a testament to how COVID-19 triggered purchasing transactions of cannabis online.

According to the startup, before COVID-19 became a hot topic, only 17 percent of sales were online. However, during the global lockdown, online sales hit a high of 52 percent.

Socrates Rosenfeld, CEO of Jane technologies, shared the milestone with media reported, explaining that in 2019, the company brought in $100 million in total transactions, with one million people using on the online website.

Fast forward to 2021, and the company estimates its revenues will reach $3.5 billion in total.

 “We feel extremely fortunate to be born from the cannabis industry where there was no direct consumer ecosystem,” Rosenfeld told TechCrunch. “And we had to go and figure out a way to connect and tie the consumer to the brand and the retailer. We couldn’t do that by shipping products directly to the consumer, and we couldn’t do that by competing against the retailer; we had to work in partnership with our retail partners to provide them with powerful e-commerce enablement tools.”

The company now offers 700,000 items, showcasing an increase of 350,000 cannabis products.