US rapper Snoop Dogg has invested into the Series A round of funding of Eaze, a San Francisco cannabis delivery service, which closed the round on $10 million this week.
Venture capital firms DCM Ventures, Fresh VC, 500 Startups and other strategic investors contributed to the round, according to a press release. DCM was the lead.
The cannabis technology company plans to use the funds to “expand its medical marijuana on-demand delivery technology nationally, in locations where it is legal” reads the press release. The company currently has a presence in 35 cities. It plans to recruit 50 new hires across all lines of the business include customer support, engineering, human resources and operations, according to its career page.
Eaze offers verified patients products through online orders and aims to deliver in about 15 minutes, according to the company website. The company uses an Uber-like smartphone interface to connect verified medical marijuana patients with licensed local cannabis dispensaries.
Launched in July 2014 as the first on-demand application in the newly-emerging “cannabis technology” category, Eaze has attracted attention from Bay Area investors and raised $1.5 million seed funding last year in November from nearly 40 Silicon Valley angel and institutional investors. These included The ArcView Group, a company mainly invested in cannabis-related businesses; DCM Ventures, a firm with nearly 20 years of VC experience and $2.5 of assets under management; and Fresh VC, which also led the syndicated investment on Angel List, according to a statement.
“We were the first Silicon Valley venture firm to make an investment in the cannabis tech sector in November 2014 when we invested in Eaze’s seed round, and we are now excited to lead this round,” said David Chao, general partner at DCM Ventures. “With public sentiment and public policy aligning to broaden access and the cannabis market surging toward $100 billion, we believe there is a huge opportunity as the fast-moving technology and cannabis industries intersect.”
Chao said he sees Eaze as a clear market leader with robust technology, a seasoned executive team and demonstrable growth to date.
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