Cannabis Marketing Automation Platform Baker Announces Additional Funding Bringing Total to $3.5M
Baker, Now One of the Largest VC-backed Marijuana Companies in the U.S., Continues to Grow its Executive Team and Expands into Three New States
DENVER, COLO. (March 14, 2017) – Baker, the leading customer engagement software company for marijuana dispensaries, today announced it secured a $1.6 million extension to its August 2016 seed round, bringing the company’s total raised capital to $3.5 million, making it one of the single most VC-backed companies in the marijuana space. In addition, Baker announced that it has expanded operations to serve dispensaries in Massachusetts, Connecticut and Hawaii, making it active in 10 states and Canada.
Led by Poseidon Asset Management, this extension will fund Baker’s continued and explosive growth. Key performance indicators in the last year alone include: doubling its dispensary customers to 250, expanding into six new markets, and growing its workforce by nearly 100 percent. Baker plans to release new and more innovative retail-software products to its existing cannabis markets, and continue expansion into new markets recently legalized for recreational cannabis sales – California, Nevada, Massachusetts and Maine.
This extension, specifically the fact that it closed so quickly on the heels of our initial round, validates our position that the cannabis industry needs industry-specific tools.
Joel Milton, CEO and Co-Founder of Baker
While parallels can be drawn to other industries, cannabis growers, manufacturers and dispensaries need solutions that cater to the legal and logistical demands of our industry. We’re excited to be leading the industry in that direction and have a strong vision for what is possible for the cannabis market in the coming years.
The Denver-based software company uses a unique data-driven approach to help over 250 dispensaries across Arizona, California, Colorado, Hawaii, Nevada, New Mexico, Massachusetts, Oregon, Washington, and Ontario, leverage their brands to keep their customers happy and loyal, and increase revenue almost immediately. Last month, Baker drove more than $3.1 million in revenue for its dispensary clients.
Baker’s industry-specific marketing automation platform connects dispensary owners with their customers across every touchpoint from online ordering to in-store check-in, loyalty, promotions and personalized messaging. Additionally, Baker creates interactive shopping menus that dispensaries can embed into their own websites, turning these properties from static information sources into e-commerce destinations.
“Poseidon has been investing in the cannabis industry for over three years and Baker has proven to be one of the fastest growing, most scalable businesses we have seen. Since its initial seed investment, Baker has demonstrated the value of its platform to this rapidly growing industry,” said Morgan Paxhia, Managing Director and Chief investor at Poseidon Asset Management. “In less than twelve months, we saw them grow from 30 dispensaries in Colorado to over 250 dispensaries across 10 States and Canada. Coupled with the recent successful ballot initiatives, which virtually tripled the size of the industry overnight, Baker is definitely a company to watch as it continues to mature.”
I noticed a big opportunity in the cannabis industry, which draws many parallels to the craft beer business with which I’m very familiar. Due to federal regulations, investments in the industry have seemed too risky.
John Green, Executive Chairman and Partner for Founder’s Brewing Co.
However, following the November ballot initiatives (where recreational cannabis was legalized in four states that tripled the industry size), the opportunity became a lot more attractive. Couple that with the success of Baker’s technology platform for dispensaries and brands along with its explosive growth — it was no-brainer.
This round was funded primarily by existing investors including, Michael Lazerow, Base Ventures, XG Ventures, Poseidon Asset Management, Phyto Partners, the founders of Outside Lands, and several notable others. For more information on Baker, which graduated from notable Silicon Valley accelerator 500 startups, please visit www.trybaker.com.
Baker is a Denver-based customer engagement and marketing automation platform for cannabis dispensaries and brands. With their data-driven approach to turn anonymous visitors into repeat customers, Baker’s smart products include personalized messaging, loyalty, and online shopping. The industry-leading platform is described as the perfect recipe for a successful dispensary, with results to prove it: on average Baker clients see a 40% boost in average order size, and a 300% ROI in just six weeks. Founded in 2014, the company graduated from notable startup accelerator 500 Startups, and is already powering the cannabis retail experience for more than 250 dispensaries and over 250,000 of their customers. Investors include Michael Lazerow, Base Ventures, XG Ventures, Poseidon Asset Management, Phyto Partners, The founders of Outside Lands, and others.