Canix raises $10M to expand its cannabis seed platform in the US and Canada.

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Canix today announces it has raised $10 million from venture capitalists. The company plans to use the capital to expand in the United States and Canada, which will allow it to scale its ERP platform for grow forecasting and production planning in line with market norms.

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The round was led by an unannounced firm that does not wish to disclose information. Other investors include Altair VC, Cathexis Ventures and Emles Ventures, as well as other prominent angel investors. Canix Wins Grand Prize at TechCrunch Disrupt Startup Battlefield 2020.

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The company says its products are currently used by 2,300 licensed cannabis operators in 17 states and 6 countries. This funding allows the company to expand even further by targeting new markets and expanding its product portfolio to help operators better predict and calculate earnings per gram.

Canix product screenshot

Image credits: Canix

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“Right now [Canix] can help understand current and past inventory values ​​across multiple variables,” said Stacey Chronowski, co-founder and CEO of Canix. “It’s getting exciting because we’re touching different parts of the supply chain and providing data to say you know what you can expect over the next nine months.”

Chronowski says this predictive feature allows operators to prepare their business for future needs. If, for example, an operator needs to sell 90 pounds of weed by a certain date, Canix will soon provide details on when to start growing, who to hire to handle the plants, and when the crop will be on the market. (and in what price range).

Scaling Canix into new markets requires the company to comply with market-specific rules. Each state where cannabis is legal has vastly different laws for operators within its borders.

“There is a significant amount of work to be done on the product to reach other states,” Chronowski said. “Now we are in 13 states outside of California. Moving to Illinois or New York requires integrating with new compliance systems because those states have a different type of system. Providing a very reliable system is critical because, for example, the labels are different in each state. The manifestation is different in each state, and the eligibility rules are different in each state. You can’t be wrong.”

This government regulation has been a bottleneck for Canix.

The company says it is starting this expansion in Illinois, one of the largest and fastest growing markets recently given the green light for recreational weed. After Illinois, the company plans to move to New York, Utah, Washington and New Jersey.

Chronowski sees great opportunities in Canada. “Canada offers the advantage of being a federal legitimacy,” she said. “There are big cannabis companies there. It’s a little less Wild West than some of the new markets in the US. In terms of the market, there are fewer competitors in Canada. So given the timing, we think it’s time to expand in Canada as well.”


Credit: techcrunch.com /

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