On Oct. 25, 2016, Eaze, a medical marijuana delivery service in California, announced that it had completed a $13 million Series B round of financing, bringing the company’s fundraising total to $25 million.
From this funding round’s initial pitch to its closing, Eaze completed this capital raise over a period of several months, securing the right set of investors for its continued growth. Fresh VC led the round, bolstered by DCM Ventures, Tusk Ventures, Winklevoss Capital and Rose Capital, among others.
“We are selective with regard to which investors we work with and didn’t have an immediate need for capital,” said Keith McCarty, CEO and founder of Eaze, to MJINews.
While the Series B round afforded Eaze the ability to be selective, the act of fundraising wasn’t without its challenges. “Although many investors saw it as a benefit, some were uneasy regarding the future of regulation in California,” McCarty said. “We surmounted concerns by demonstrating the power of our data in educating regulators and therefore helping to shape policy throughout the state.”
Eaze’s ability to deliver on its promises has made DCM Ventures and Fresh VC repeat investors. “We invested in Eaze at the seed stage, preemptively led Series A, made a significant Series B investment, and will continue investing in Eaze as it continues to exceed our expectations,” said David Chao, general partner at DCM.
This latest round of financing is slated to equip Eaze for success in an industry that continues to gain public support, as well as eager investors, individuals who may one day want look to Eaze as an investment option.
“We’re currently focused on executing against our proven strategy and expanding to additional markets,” McCarty said. “As we continue to grow and progress the regulatory environment, we may consider an IPO.”
In the immediate future, Eaze is looking to election day and preparing for a market that may soon welcome its home state of California into the recreational industry.
“Adult use is on the precipice of becoming legal in California, the largest marijuana market in the United States,” McCarty said. “We’re thrilled with the growth we’ve achieved and are poised to accelerate as the market hits an inflection point.”