Cannabis data intelligence startup Headset secures $12.1 million Series A to accelerate growth and international expansion
Just a few years ago, marijuana sales were illegal in Washington, Colorado and other states across the nation. Today, cannabis market size has surpassed a $1 billion a year, which translates to hundreds of millions of dollars in tax revenues for the state governments. Now, startups are getting into game and want to get a piece of the action. With varying rules and regulations across the states, one Seattle-based startup is aiming to unlock the insights and give cannabis business the data they need to make better-informed decisions. Launched in 2015 by the trio that co-founded Leafly, Headset is the leading provider of data and analytics to the cannabis industry.
Today the company announced it has secured and closed a $12.1 million Series A funding round to improve current products and services; expanding the company’s offerings to additional U.S. states and international markets; and supporting Headset’s partnerships and strategic alliances. The round was led by Poseidon Asset Management and AFI Capital Partners with participation from Canopy Rivers Inc. In conjunction with the funding, Headset also announced that Emily Paxhia of Poseidon and Nico Richardson of AFI will be joining Headset’s board of directors.
With electrifying demand for reliable, actionable information on the cannabis industry, the funding comes at a crucial moment for Headset’s growth. The Series A capital will go towards improving current products and services; expanding the company’s offerings to additional U.S. states and international markets; and supporting Headset’s partnerships and strategic alliances. It will also help the company serve new customers from the consumer packaged goods, beverage/alcohol, and financial industries, who are taking an increased interest in cannabis.
The investment continues Headset’s relationship with Poseidon and AFI, and adds Canopy Rivers to their group of backers. Canopy Rivers is the corporate venture capital platform of Canopy Growth Corporation, a global leader in the cannabis sector. Poseidon is one of the most prominent investment firms operating in the cannabis space, winning numerous awards for their fund’s performance since they launched in 2013. AFI is a prominent growth equity fund whose principals have extensive experience operating and investing in the cannabis industry.
“As investors, we see the need for data to inform investment and M&A strategies,” said Emily Paxhia, Managing Director of Poseidon Asset Management. “Headset is already tracking billions of dollars of transactions both in the US and Canada. This successful Series A raise will drive market penetration and depth of technological development.”
Narbe Alexandrian, VP Business Development of Canopy Rivers, concurred: “We believe that Headset’s retail intelligence platform will revolutionize the way data is used in the cannabis industry. As the cannabis market matures, data is becoming central to competitive success. It is increasingly important to understand key trends, competition, buying shifts and target demographics in real-time.”
Nico Richardson, Managing Director of AFI, noted that data is key to success in any industry, and praised Headset for delivering the most dynamic and comprehensive analytics to the cannabis industry. “We are excited to invest in a team that has built the industry’s leading data analytics and business insights platform. We look forward to supporting Headset as they expand into new markets with evolving products.”
All three firms bring extensive experience in scaling both cannabis and non-cannabis companies and can lend their broad network of support that spans the US, Canada, and international cannabis markets.
“Each one of our investors brings invaluable industry knowledge and a strong network of portfolio companies that enable us to collaborate in all new ways,” said Cy Scott, CEO and Co-founder of Headset. “The new capital will fuel future growth, new market expansion and enhanced product development, continuing to ensure our leadership position within the cannabis industry.”
Headset is a real-time business intelligence and analytics service for the cannabis industry. Their services cover an array of specialized needs that businesses in the industry have, be they growers, extractors, processors, or retailers.