The average seed round in the nascent cannabis industry in the U.S. hovers around $1 million, according to hemp and cannabis-focused investment research by Poseidon Asset Management.
But Denver-based Baker has raised $1.6 million in seed funding for software that helps marijuana dispensaries win new customers, eliminate long lines in stores, and retain and reward their best customers for loyalty.
Founded in 2015, Baker originally began as an “order ahead” app to let medical marijuana customers reserve and go pick up the products they wanted for medical or legal recreational use.
The platform has since evolved into something more like Five Stars or Belly, but custom-built for the cannabis industry.
Why can’t sellers of medical and otherwise legal marijuana use the kind of tools that other mom and pop shops and retailers are using?
For one thing, there are too many local and federal regulations in motion for them to keep up without putting in a lot of effort, explained Baker CEO Joel Milton.
Investors in Baker’s seed round included a mix of cannabis and tech investors. Buddy Media and Golf.com entrepreneur Michael Lazerow led the round joined by Base Ventures, XG Ventures, 500 Startups, Poseidon Asset Management and others.
Featured Image: Baker Technologies Inc.