By Chloe Aiello
Confident Cannabis secured $12 million in fresh funding, bringing its total to $18 million in funding since the marijuana technology company was founded.
The round was led by Poseidon Asset Management with participation from Y Combinator and Bullpen Capital, and Confident Cannabis will use the funds to grow the company and team.
"We raised this round really to continue furthering our mission to simplify wholesale testing and trade in the cannabis industry. Currently we are in about 22 different markets, we have our wholesale platform live in Oregon ー we want to expand that to different states all across the country and Canada," co-CEO of Confident Cannabis Steve Albarran told Cheddar.
Confident Cannabis develops software to help legal marijuana companies buy and sell wholesale cannabis, as well as offering laboratory information management systems or LIMS. Since Confident Cannabis already operates its wholesale platform in Oregon, it has front-row seats to what has become a crippling problem of cannabis oversupply in the Beaver State.
A bill, backed by Oregon's Governor Kate Brown, that seeks to limit the amount of new grows licensed in the state until the cannabis glut eases passed the Oregon Senate earlier this week, Portland Business Journal reported. It was instituted to address overcrowding in the market, which has contributed to almost twice as much available cannabis as the legal market can consume, the Oregon Liquor Control Commission estimated. As a result of the surplus, farmers have had to destroy their crops or resort to the black market to recover their losses.
While Confident Cannabis can't force the hand of state lawmakers to allow interstate commerce, Alberran said it can "level the playing field" so all producers have a fair shot at selling their product.
"This is a great way to let really high quality producers stand out from the crowd. In markets like that, usually those who survive are the ones with bigger budgets, bigger sales, and marketing teams. But we want to help protect the smaller farmers," he said.
And if and when growers in Oregon or California are permitted to sell their flower out of state, Confident Cannabis will be well-positioned to usher in that new era of commerce.
For full interview click here.