On Friday, Seattle-based cannabis platform Headset announced $1.825 million in a new investment round. Silverleaf Venture Partners led the round, with participation from WGD Capital and Poseidon.
The U.S. cannabis industry is in a unique spot because it’s so highly regulated. Some states allow people to buy cannabis products for medical purposes, others allow both recreational and medical use, while some states ban sales altogether. Dispensaries and companies that create and sell cannabis products have to know how to navigate these regulations, which can make or break them. Yet at the same time, analysts predict the cannabis market will grow rapidly over the next few years. So if these companies can figure out how to build a successful business, they could be set up for long-term success.
Headset has built a data platform that is used by over 1,700 retailers across 30 states. The platform allows these companies to use consumer transaction information to make better business decisions and optimize their operations. It also provides manufacturers, processors and distributors with aggregated sales data to give them real-time insight into industry trends.
Since the cannabis market is a tricky industry to navigate, any tool that can help a company make data-informed decisions has the potential to be a great benefit.
This new funding will help Headset enter more legal markets, and expand with the growing cannabis industry. The company projects growth opportunities in both the U.S. and Canada.
“The cannabis industry continues to expand at a significant rate, with new markets legalizing faster than ever before,” CEO and co-founder Cy Scott said in a statement. “With this new round of capital, Headset can better support these emerging markets while continuing to deliver the innovative analytics Headset is known for.”
Built In spoke with Scott when Headset raised its previous funding round in 2019.
