What do a Reddit CEO, ex-Facebook executives, and Hall-of-Famer Joe Montana have in common? They all pitched in toward a $2.1 million investment in a hot new cannabis startup called Meadow.
SOMA tech company Meadow announced this morning it has received $2.1 million in seed funding today from a collection of investors including former Facebookers, Reddit’s CEO and founder Steve Huffman, Joe Montana’s investment fund Liquid 2 Ventures, among others.
“We have really progressive investors. We’re super, super-honored to be working with them,” said Meadow CEO and co-Founder David Hua.
The deal comes amid a flurry of new investments in the cannabis space. And despite the selectivity of Meadow in their hunt for investors, their $2.1 million deal is actually small compared to many of the major investments in the cannabis industry.
But the story of this cannabis start-up is interesting because it’s one of the little guys competing against the big names in point-of-sale software providers. Those bigger companies are still keeping federally illegal cannabis at arms length, and Meadow is cashing in on the opportunity.
Hua said, “it’s what we need, for what we wanted. If I got $10 million today I wouldn’t know what to do with it. It’s what we need to get to where we want to with each checkpoint we want to hit.”
CB Insights reports about $215.2 million in venture capital was poured into the blooming marijuana industry in 2015.
Currently thirty-five states have medical marijuana laws, and four states and Washington D.C. have adult use legalization. The legal cannabis industry could grow to $20 billion in economic impact by 2020, analysts have estimated.
Meadow has its hands in several pots at once, so to speak. They focus on powering online deliveries and dispatch for California collectives, moving up the supply chain. They also power pot doctor visits over smart phones. Now, they’re getting into dispensary sales software.
The cannabis start-up powers deliveries for 45 collectives through GetMeadow.com, as well as thousands of doctors visits over the phone with Meadow MD, and now dispensary sales with the Meadow Platform.
In 2015, Meadow received $120,000 in seed funding from leading tech incubator Y Combinator, where it graduated last year. The new $2.1 million in seed funding will allow the company to add staff and software features.