Tradiv Scores $1 Million in Seed-Stage Funding

Tradiv

Tradiv.com announced on Thursday that it had completed its $1 million seed-stage round of funding. The round was led by investors TL Partners, Poseidon Asset Management, and Anslinger Capital.

The company completed the CanopyBoulder cannabis accelerator this past June when the company launched its beta marketplace. The goal was to enable growers, edible manufacturers, and dispensaries to source high-quality cannabis products efficiently.

“We founded Tradiv because we identified a need for the cannabis industry to catch up with other industries, through technology and efficiency,” said CEO Aeron Sullivan, former Marine captain and founder of Tradiv.com.

As he told MJINews in June, the basic tasks of finding the product, purchasing it and receiving it are particularly acute for the smaller, less integrated enterprises. “We didn’t build the system for marijuana businesses,” Sullivan said then. “We built it for small marijuana businesses. That is our market.”

More recently, Lisa Buffo, Chief Marketing Officer of Tradiv, told MJINews, “Generally speaking most dispensaries are still small enterprises. They’ll have one location or maybe, two.”

After pitching to the ArcView Group’s Investor Network, Tradiv was approached by investors who saw a future in the concept of an online, wholesale, B2B marketplace.

Buffo told MJINews the company has signed up one to three businesses a day since their launch in Colorado on Oct. 1, 2015. These include cultivators, dispensaries and infused products manufacturers. The latter category includes both edibles and extract manufacturers.

“We’re currently focused on creating an online marketplace for Colorado. We are looking to expand to other states as the Colorado marketplace becomes more mature and supply chains are developed,” Buffo added.

Challenges remain as the industry continues to deal with the issue of digital payments, she noted.

Tradiv streamlines the process of wholesale buying and selling. A dispensary can now look at the online marketplace to source different products and to compare quality and pricing. Buyers no longer need to make multiple phone calls—everything can be done online. Cultivators can upload their product and hear directly from interested buyers. We don’t currently have a digital payment solution, but we’re diligently working to find one like the rest of the industry.

As far as point-to-point shipping is concerned, “Businesses can still use their preferred shipping solution. Tradiv works with a partner courier service that clients have the option of using when they arrive at the online check-out.”

When asked what had changed between June and October, Buffo replied,

The great strength today is that we have a fully functioning marketplace. We offer around the clock customer service, including a full time trading desk. One of our nine employees’ sole job is to make sure buyers and sellers get connected in a timely manner. Even if the product a client is looking for is not currently on the site—we will help them find it.

Challenges persist, but the cannabis industry is the fastest growing industry in America. According to research published by ArcView Market Research, the estimated legal U.S. market grew 74 percent in 2014 to $2.7 billion, up from $1.5 billion in 2013.

Viewing only the medical marijuana side of the equation, analysts at New Frontier Financials project that in the next five years the number of patients will double. That number could increase even faster if the federal government legalizes medical marijuana, which would give states more flexibility to permit the use of cannabis-based therapies.

Is there potential for online B2B services that can provide online shopping and perhaps in the future, digital payment solutions and point-to-point shipping? The early money seems to think so.

Anne Wallace is a New York lawyer who writes extensively on legal and business issues. She also teaches law and business writing at the college and professional level. Anne graduated from Fordham Law School and Wellesley College.

Related posts

Top