Cannabis finance company Bespoke Financial announced today that it has raised $ 8 million in a Series A funding round. During this round, the company brought new key investors into its corner to offer financing solutions to companies in the cannabis space.
Bespoke is a direct lender and offers a variety of financing solutions to companies involved in cannabis. These short term loans allow companies to borrow with Bespoke, which then offers better terms on subsequent loans and products. The company says loan volume has grown exponentially, beating projections for the current year by 25%. The company has served $ 120 million gross merchandise to more than 2,000 cannabis licensees with zero default settings to date.
With this new round of capital, Bespoke intends to introduce new financing structures and expand its financing options through various sales channels.
CEO and Co-Founder George Mancheil calls this round a defining moment for his company and a stamp of validation of the direction and products that Bespoke Financial offers. As he tells TechCrunch, this round offers the growing startup several important partners.
The funding round was led by Snoop Doggs Casa Verde Capital and Sweat Equity Ventures, along with Ceres Group Holdings, Greenhouse Capital Partners, DoubleLine Capital co-founder and former President Philip Barach, and Robert Stavis, a New York-based investor.
This is Sweat Equity Ventures (SEV )’s first investment in a cannabis company. SEV, supported and funded by LinkedIn founder Reid Hoffman, is led by Dan Portillo and operates differently from traditional venture funds. SEV works with founders to bring top engineering and business talent to its portfolio companies. In return for these services, SEV takes equity from companies instead of just writing checks.
“This is our company’s first investment in the cannabis industry. We’re excited to partner with Bespoke as more states legalize cannabis use, and the federal government is considering legalizing it nationwide. This partnership combines Bespoke’s financial and cannabis acumen with our team’s expertise in scaling innovative tech companies, giving cannabis companies better access to optimized financing. At the same time, investors benefit from more transparency and improved risk monitoring, ”says Dan Portillo, Managing Partner of Sweat Equity Ventures. in a published statement.
Karan Wadhera, managing partner at Casa Verde Capital, says Bespoke Financial is addressing real needs in a growing industry. Casa Verde Capital previously invested in Bespoke Capital, including a $ 7 million round in 2019.
Tailor-made CEO Mancheil told TechCrunch that his company is focused on being more than just a lender. It wants to be a modern finance company that allows it to act as a true partner to the cannabis industry.
With that $ 8 million, Bespoke Financial has raised $ 28 million so far. The company was founded in 2019 and has had 12 employees since that announcement.