SAN FRANCISCO — Hot on the heels of the record Privateer funding round worth $75 million, Silicon Valley is pumping more venture capital into the cannabis sector. San Francisco-based Eaze has raised $10 million to expand its on-demand medical cannabis delivery app geographically and improve customer service. The company plans to operate in every state where medical marijuana deliveries are legal.
The timing of the app’s launch — last July — was perfect, Eaze founder Keith McCarty says. At least seven other services have jumped on the bandwagon since. McCarty, formerly of social networking site Yammer, which was acquired by Microsoft for $1.2 billion in 2012, kicked off his medical marijuana delivery app in the Bay Area in 2014, acting as an online middle-man. Patients with cards go to the Eaze website and order on-demand buds from local dispensaries, which have their own delivery drivers. Claims of a fifteen minute delivery window seem arguable, but the service is convenient, especially for many seriously ill people who struggle to visit a dispensary.
Nicknamed “the Uber of marijuana,” Eaze similarly started up with $1.5 million seed money and raised $10 million within less than a year of launch. It’s unclear when the company intends to expand into other states, but the app technology makes it easy to hit the ON switch rapidly whenever state laws make the delivery service viable.
DCM Ventures, led the Series A investment round – venture-bucks- speak for a company’s first major round of financing. DCM has over $2.5 billion under management, with participation from Fresch VC and 500 Startups among other major investors.