Hemper Raises $10M In Series A Financing: What You Need To Know
Earlier this week, cannabis accessories and lifestyle brand Hemper announced the closing of a $10-million Series A financing round that follows a $1-million seed round completed over the summer.
The proceeds will be used to support growth and build out a national online cannabis ordering platform that will connect consumers and dispensaries, according to the company.
Why It Matters
This year has brought multiple capital raises and investments in the tens and hundreds of millions — even billions — among cannabis companies. What's the significance of a relatively small raise like Hemper’s?
What makes this particular raise interesting is the fund behind it. The round was led by San Francisco-based, cannabis-focused hedge fund Poseidon Asset Management along with Evolution VC Partners, the New York-based VC fund that led Hemper’s seed round. These funds have a history of investing in the same companies, with their joint track record including other smoking-and-vaping-related businesses like PAX Labs and JUUL Labs.
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“Hemper represents a true evolution in the smoking world and is allowing consumers to finally have elegant yet professional products that are hip and do not represent the ‘Cheech & Chong’ imagery of a generation past,” Evolution VC Partners' Gregg Smith told Benzinga.
Hemper has reached more than 250,000 customers and recognizes that today's smoker is "more mainstream, educated [and] affluent," and seeks innovative, well-designed products that might play well on social media, the venture capitalist said.
Emily Paxhia, co-founder and managing partner at Poseidon Asset Management, said: Hemper "is demonstrating a focus on learning from and catering to the modern cannabis consumer via their platform, which is part of a shift in the broader cultural interest in cannabis. Focusing on the consumers’ interests and drawing from their data and feedback enables a bespoke and curated experience."
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