Uber-For-Weed Startup Eaze (Mr Nice Guy) Has Raised $10 Million From Investors Including Rapper @SnoopDogg
Eaze, a marijuana-delivery startup, has raised $10 million from investors including DCM Ventures, 500 Startups, Fresh VC, and Snoop Dogg’s Casa Verde Capital.
Eaze is an on-demand marijuana-delivery startup that works by connecting California’s medical-marijuana patients with local dispensaries.
It raised a $1.5 million round in November and says it can provide delivery within 10 minutes.
The on-demand trend was made popular by Uber. Press a button, and you can have anything at your doorstep in a few minutes. The business model has yielded a few billion-dollar startups, including the grocery-delivery service Instacart.
Founded by Keith McCarty, an early Yammer employee, Eaze is one of several startups in the booming marijuana category as investors scramble to get into deals just ahead of the drug’s potential legalization. Recently Alaska, Washington, DC, Colorado, and Washington state have all passed laws legalizing recreational marijuana.
Earlier, Privateer Holdings raised a $75 million round to fund marijuana startups — the biggest private funding in the legal weed business to date. More than half a dozen startups are now providing marijuana-delivery services, including Dave, Canary, Meadow, Grassp, and Nestdrop.
Though there isn’t a timeline, McCarthy tells Quartz the company plans to expand to areas of the Bay Area, offering its services to people wherever recreational and medical marijuana are legalized. The company will hire 50 employees over the next 50 days.
The numbers: Eaze, an on-demand marijuana delivery service (and one of several nicknamed the “Uber for weed”), has raised $10 million in a series A round. The San Francisco startup, founded by early Yammer employee Keith McCarty, raised $1.5 million in seed funding in November. It was one of the first pot companies to get support from institutional investors, who in the past have been skittish about putting their money in marijuana.
The investors: DCM Ventures, which invested in Eaze’s seed funding, led this round, with participation from Snoop Dogg’s Casa Verde Capital, Fresh VC, and 500 Startups. “At the time we invested in the seed, we had a thesis the medical marijuana market would continue to grow, and from a regulatory perspective, it would move toward deregulation,” Kyle Lui, a principal at DCM, tells Quartz. “Things accelerated much faster than we had anticipated.”