Wholesale cannabis platform LeafLink last week announced the close of a $40 million Series C investment round led by Founders Fund – it is the firm’s largest technology investment in the cannabis space.
LeafLink said the investment round brings its venture funding to more than $90 million. The Series C round will be used to expand in current markets by bringing on new brands and retailers, capitalizing on newly legalized markets, and continuing to expand its offerings around payments, delivery, and data and analytics, the company said.
Ryan G. Smith, co-founder and CEO of LeafLink, described the fundraising round as “monumental” for the firm as it continues “to define a space that shows no signs of slowing down.”
“We’re honored to partner with Founders Fund as we scale our marketplace technology across the growing cannabis industry. Our eyes are set on bringing efficiency and innovation to the supply chain and we’re excited for cannabis to serve as a model for more legacy industries in the future.” – Smith, in a statement
Napoleon Ta, a partner at Founders Fund, said the company made the investment in LeafLink because “the team is merging best practices from e-commerce marketplaces with B2B technology to streamline an entire industry’s supply chain and operations.”
LeafLink estimates that 32 percent of U.S. wholesale cannabis orders flow through its marketplace.
Additional participants in the fundraising round include Thrive Capital, Nosara Capital, and Lerer Hippeau. In 2017, Lerer Hippeau was part of LeafLink’s $3 million seed round, and marked the first time the firm invested in the cannabis industry. Nosara also made seed round investments in LeafLink in 2017.