Snoop Dogg's venture capital firm is leading an investment in a cannabis tech company

Jeremy Berke

Snoop Dogg's fund is making big moves in the cannabis space.Richard Shotwell/AP

A cannabis-specific venture capital firm that counts Snoop Dogg among its partners is investing in a Toronto-based cannabis tech company.

Snoop Dogg's fund, Casa Verde, led a $2 million seed round in Trellis, a cannabis inventory management firm. Trellis develops software to help dispensaries and other plant-touching businesses comply with regulatory requirements, including seed-to-sale tracking. 

Casa Verde makes early-stage investments in cannabis companies that do not touch the plant, but rather provide ancillary products and services to the emerging industry.

"We are at a pivotal point in the industry where the market is expanding with new regulations and operators are experiencing growing pains. This makes it all the more important to have strong tools and procedures in place," Pranav Sood, the CEO of Trellis said. "We are thrilled to have been able to attract such a strong team of beta clients, investors, and advisors to support us in our vision."

Trellis works with cannabis clients in both Canada and California and plans to expand to more states that have legalized cannabis for recreational and medicinal use. 

"As cannabis legalization sweeps the US, the compliance burden for cannabis-related businesses will become more and more rigorous," Karan Wadhera, a Goldman Sachs alum, and the managing partner at Casa Verde said. "We have been searching for companies with an elegant solution to address the growing pains of the industry."

"That is exactly what Pranav and his team have built with Trellis," Wadhera said.

Gateway, a California-based incubator for cannabis startups also provided additional funding, as well as Argonautic Ventures and One Gun. 

Wadhera previously told Business Insider in an interview that investing in ancillary startups that provide software and tech services to cannabis companies is one of the "most exciting" areas of the industry, as these companies can "actually scale" and aren't subject to the often byzantine regulations that plant-touching businesses are.

Cannabis is considered an illegal drug by the federal government, although a number of states have legalized the plant for recreational and medicinal use. Attorney General Jeff Sessions, a noted opponent of cannabis, has threatened to crack down on the nascent industry. 

Cannabis startup Tradiv is raising $1M to connect growers and sellers

Boulder, Colorado-based Tradiv is raising a $1 million round as it gears up to launch its B2B marketplace for cannabis cultivators, marijuana infused product companies, and dispensaries.

That’s right: The B2B pot ecosystem is unfolding right before our eyes.

Backed by Cannabis accelerator CanopyBoulder and accelerator partner Micah Tapman, Tradiv revealed the raise in a public filing with the U.S. Securities and Exchange Commission. The weed startup has so far raised $650,000, according to the filing — at least $20,000 of which likely came from CanopyBoulder, in exchange for a whopping 9.5 percent equity stake. The filing also lists Emily Paxhia, partner of Cannabis-only fund Poseidon Asset Management; and former Microsoft Surface manager, Nick Hofmeister.

Cannabis startup Tradiv is raising $1M to connect growers and sellers

10 Cannabis Startups That Have Raised Over $1 Million (Besides Privateer)

Carol Tice

Contributor

Legal cannabis gained a higher profile recently, after Seattle pot-investment firm Privateer Holdings closed a $75 million funding round. The deal included the first mainstream venture capital involvement in the sector, from Peter Thiel’s Founders Fund.

But there’s plenty of other VC interest in legal weed, and it’s likely just the beginning of investor interest in “potpreneurs.” Quite a few legal-pot startups are publicly traded penny stocks, so everyman investors can get a piece of the action, too.

At first, many VC investors wanted to remain anonymous with their pot investing, but now more are coming out of the shadows and publicly announcing their interest in the sector.

To give you an idea of the types of marijuana startups that are attracting venture capital, here are a dozen other cannabis startups that have raised over $1 million to date (data compiled by this reporter from CB Insights, the MoneyTree Report by PricewaterhouseCoopers (PwC), Crunchbase, and company research):

Leafline Labs ($12.4M) — This Minneapolis-based medical-marijuana startup has the involvement of several members of the family that owns nursery company Bachman’s Inc. Leafline is one of only two cannabis companies that Minnesota has licensed to operate in the state. Leafline raised its funding from 113 individual investors.

Four Twenty Investments ($10M) — A private investment firm based in Toronto, Four Twenty did a $10 million debt financing in December. The firm invested an equal sum in Nhale, a publicly traded grow-technology company based in Houston that plans to acquire other pot startups.

Palliatech ($10M) — This New York City producer of marijuana-based pain medicines is also a grower and distributor. PwC reports funders include Russian VC firm Gruppa Sputnik OOO.

Vida Cannabis ($9.39M) — The Ottawa-based pot producer most recently raised nearly $5.8 million in a private placement last July. Part of the funding went to purchase a secure, hydroponic production facility in Nova Scotia.

CannTrust ($3.79M) — A Canadian medical cannabis producer, CannTrust is owned and operated by pharmacists. It raised $1 million of its funding this month, CB Insights reports.

MedMen ($3.75M) — This provider of turnkey management services to the legal-pot industry is based in Los Angeles. MedMen raised all of its funding in November, to expand operations to Nevada and Illinois. Backers included Florida-based N Squared Management.

Agricare ($2M) — Chicago-based Agricare raised its funding in October, though funders weren’t disclosed. Besides its hometown, the company is also in the licensing process to set up operations in Peru, Ill.

Eaze ($1.5M) — Funding for this San Francisco pot-delivery app came from technology microfunder Fresh VC in November.

Aquarius Cannabis ($1.16M) — This marijuana branding company raised most of its funding from angel investors at its October launch, CB Insights reports. It’s based in the L.A. suburb of Woodland Hills, Calif.

Privateer holdings management

MassRoots ($1.1M) — A social network for the cannabis community, MassRoots most recently raised $500,000 in September. Funders in past rounds include The ArcView Group. which runs a website platform for facilitating cannabis investment, and Dutchess Opportunity Fund, a fund of global investment firm Dutchess Capital.

This list is far from comprehensive — it’s just a sampling of the types of pot-related businesses that are interesting investors at this point.

It’s notable that most of these startups aren’t based in the traditional VC hubs of Boston or Silicon Valley. Indeed, many pot startups are based in Canada, where medical marijuana is already federally legal.

10 Cannabis Startups That Have Raised Over $1 Million (Besides Privateer)