The startup burning $1 million a month in hopes of selling $1 billion of pot a year

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The startup burning $1 million a month in hopes of selling $1 billion of pot a year

MarketWatch

Exclusive investor documents show complicated business of Eaze, the dominant weed-delivery offering in California

Cannabis delivery startup Eaze Solutions Inc. has a lofty goal: By fiscal year 2020, it expects to ship the rough equivalent of a 33-foot-cube of marijuana — nearly three joints for every registered voter in the U. S. — to weed fans in America’s legal markets.

The goal of moving the equivalent of $1 billion in cannabis and related products in a year has led the company to burn about $1 million a month as it aggressively expands into markets that have, in some cases, proved costly, according to information provided to potential investors and exclusively obtained by MarketWatch. The documents render a snapshot of a company wrestling with complex, often difficult regulations, that’s pushing the boundaries of what’s legal in a market where the laws are changing rapidly and causing uncertainty about the potential for investments.

When contacted about this story, Eaze Chief Marketing Officer Stephen Matt wrote in an emailed statement, “While we don’t disclose revenue or discuss future plans, the marijuana industry is incredibly promising, and presents an opportunity that innovators, investors and policy makers alike are excited about.”

Born in 2014, Eaze’s origin sounds similar to startup success stories such as Airbnb and Uber, and like those two it also claims to only produce tech that connects people, rather than selling pot itself. Founder and former chief executive Keith McCarty used his own money to launch the company from his San Francisco apartment with four employees and the…Read More

Lakeem Khodra
Lakeem Khodra
News Writer/Contributor at Tyranny News @lakeemk

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