Cannabis Wholesale Platform Tradiv Prepares for Capital Raise and Expansion

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In Episode 22 of the Investing in Cannabis Podcast, Brandon David interviews Aeron Sullivan, CEO of Tradiv, a  B2B marketplace for cannabis growers, marijuana-infused product companies, and dispensaries. Tradiv, which operates in Colorado currently, seeks to make wholesale cannabis trade efficient, easy, and secure.


  • Tradiv is a disintermediary
  • All-in distribution costs are 1.5-9% on platform
  • Tradiv is asset-light,  relying upon outsourced solutions for transportation and other services
  • It takes about 4 orders to achieve customer loyalty
  • Best producer did $350K in two weeks, with one order of $90K
  • Typical order is $35K, which would generate about $700 to Tradiv.
  • California continues to be a leader in flower but not concentrates due to lack of regulation
  • 85% flower currently on platform but Sullivan expects this to become more balanced
  • Tradiv provides data to help customers understand market better
  • Trim in Colorado is wholesaling at $1800, while premium flower is around $3000
  • There are many alcohol distributors now, a huge deconsolidation due technology improvements
  • Tradiv could enter the alcohol space by replacing supply chain with better technology
  • Series A capital raise ahead in Q1-2016 – no details yet
  • Looking to expand to Oregon and Washington in 2016 and California in 2017
  • Seed round through CanopyBoulder raised over $1mm
  • Delivery liability covered by strict terms of service, but no issues so far with inability to return, transporters carry liability insurance, rules established to resolve any disputes
  • Tradiv has a strong team at 14 total and is adding, including a recent addition of a supply chain engineer  from Procter & Gamble to manage Oregon and Washington
  • After next round of financing, the company will be adding staff in those states
  • Currently looking for a regional director in Colorado
  • Seed round was mixed between private equity and angels
  • Investors Poseidon Asset Management and Anslinger Capital provide significant value
  • Aeron shared several questions he uses to screen potential investors
  • 12 companies have failed to solve the problems that Tradiv addresses
  • Revenue is growing 60% per month, with client value exceeding initial expectations
  • Aeron has 3 meetings a month with regulators
  • CanopyBoulder was a great experience, compressing 9 months of progress into 3 months

Published by NCV Newswire
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