Representing one of the largest fundraises for cannabis-focused technology providers to date, online cannabis marketplace provider Jane Technologies announced this month that it has raised $21 million in Series B Funding. This newest round of funding included new and returning investors, including Delta Emerald Ventures, Gotham Green Partners and lead investor Pakala Jane Partners. The company plans to use the funds to broaden its online marketplace to international vendors, boost its data analytics platform and advance its 150,000-product e-commerce platform.
Founded in 2017 by Iraq war veteran Socrates Rosenfeld, Jane Technologies aims to bring the business model of meal delivery service Grub Hub to the legal cannabis industry. The company’s I Heart Jane software provides legal cannabis retailers with an e-commerce platform, modifying these dispensaries’ existing websites to allow them to take orders connected to their point of sale systems. Delivery is offered in states where that service is legal; in all other states, customers are able to go to the store and pick up their orders quickly.
Jane Technologies currently provides service to over 700 stores in 21 states that have legalized marijuana. For its clients, the company is able to generate a significant uptick in sales: Jane Technologies’ internal data has shown that online cannabis shoppers spend an average of $206 per month as compared to the brick-and-mortar shopper’s $122 average. Jane Technologies, in turn, generates revenue by charging $1 per order placed via its system.
The success of Jane Technologies’ latest funding round highlights the growth that the legal cannabis market is currently experiencing. In announcing his company’s successful fundraise, Rosenfeld highlighted what he sees as his company’s competitive advantage: “in a world dominated by major multi-national online retailers, we’re bringing together innovative technology to support local businesses, and connecting customers to wellness benefits in their region.” He also sees growth in Jane Technologies’ future, noting that “expanding to global markets is key for Jane as we continue to pioneer the industry and grow an industry-leading team:” “By helping cannabis companies in the U.S. and overseas, we are localizing the online sales process by bringing together dispensaries, brands and consumers through automation.”
Jane Technologies previously raised $6 million in Series A funding in October 2018, which the company used to expand its technology and data analytics and improve the shopping experience for customers.