Baker Raises $1.6mn Funding To Aid One Of The Most Challenging Industries, Cannabis a.k.a Marijuana
Looks like it’s Mary Jane’s lucky day!
Founded in 2015, Baker’s tagline goes, “The perfect recipe for a successful dispensary”. The team at Baker believes the cannabis (drug: marijuana) shopping experience should be as comfortable and personalized as it is in every other retail environment.
The Baker app originally began as an ‘order ahead’ tool that enabled customers to first reserve and later go and pick up marijuana products that are for medical or legal recreational use.
Now, the Baker platform has evolved into something more than as order ahead tool, into a full-fledged customer relationship management, marketing and loyalty reward solution. Think FiveStars or Belly, but for the cannabis industry.
The Difficulties of Funding Mary Jane
Baker’s recent funding of $1.6mn to increase the customer footfall at marijuana retailers is making headlines.
Here’s why:
- Finding funding for the cannabis industry i.e. the marijuana industry is amongst the biggest challenges known to man, primarily due to the fact that it still exists in a legal grey area.
- Cannabis has been legalized for either medical or recreational purposes in 25 states but remains illegal on the national level.
- In the United States, despite the $5 bn in legal sales in 2015 and the millions of investments already made, funding just can’t seem to keep up with demand!
The principal reason for the above is that institutional investors such as pension funds are barred either by law or policy from investing in federally illegal industries, which is as discussed the Cannabis industry stands.In addition to this, larger corporations have been waiting to see how local and state laws shake out.
Thus, Baker can now successfully contribute to the Cannabis industry with its funds. Poseidon Asset Management, MD Morgan Paxhia expects Baker to use the capital for hiring, continued product development and to raise awareness of its software-as-a-service in the growing cannabis industry in North America.
Investors in Baker’s seed round included a mix of media entrepreneurs, cannabis as well as tech investors.
What do you think about Baker’s achievement? Please share your thoughts in the comments section below.
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