On Dec. 15, 2015, MJ Freeway, a business platform for the legal cannabis industry, filed Form D with the Securities and Exchange Commission, notifying the SEC of its exempt offering and sale of securities valued at $8,025,000.
With a $25,000 investment minimum, a total of 13 purchasers helped MJ Freeway close its $8 million round of Series B financing. On Dec. 21, the company officially announced the raise, identifying Roger McNamee and Tao Capital Partners as investors.
“As an early investor in the company, we continue to be impressed by the MJ Freeway team and products, which promote regulatory compliance, accountability and professionalism within the nascent and rapidly evolving legal cannabis industry,” said Joby Pritzker, Managing Director of Tao Capital Partners and Chairman of the Marijuana Policy Project, the largest 501(c)(4) nonprofit organization in America solely dedicated to marijuana policy reform.
Tao Capital Partners had previously made a minority investment in MJ Freeway in January of 2015.
Roger McNamee, an investor in several enterprise software companies from Silicon Valley, also invested in the round.
“MJ Freeway is positioned to be the leading software platform in cannabis, empowering sound business practices in this rapidly growing legal market,” McNamee said.
MJ Freeway chose to go the route of equity investment as a means of infusing the company with more than capital.
“As we considered how to approach this recent funding, we felt strongly that we wanted to pursue investor partners who brought significant strategic value to the company,” explained Amy Poinsett, CEO and Co-Founder, MJ Freeway. “We’re delighted that our lead investors, Joby Pritzker and Roger McNamee, bring such tremendous value-adds to MJ Freeway with both cannabis and technology experience and connections.”
According to MJ Freeway’s announcement, “The company will use the funding to invest aggressively in product development, while also growing its sales team and business services.”
The company was ranked 1,928 on the Inc. 5000 2015 list for Fastest Growing Companies in America, with $2.5 million in revenue and a three-year growth rate of 205%. The recent Series B financing gives MJ Freeway an opportunity to advance its growth even more.