duchy, a four-year-old Bend, Oregon company that charges cannabis dispensaries a monthly fee to get its website up and running and manage orders, is on a roll this year, raising its second big round of funding — this time Series D of $350 million at a valuation of $3.75 billion.
The new valuation is more than double that announced in March, when the Duchy brought in $200 million in Series C funding at a valuation of $1.7 billion. At the time, the company’s valuation was nearly eight times its $200 million valuation after closing in on $35 million in Series B funding last August.
The latest funding round is led by D1 Capital Partners, with participation from existing investors including Tiger Global, Dragoneer, DFJ Growth, Thrive Capital, Grown Ventures and Casa Verde Capital. New investors include Willoughby Capital, Glyn Capital and Park West Asset Management. The latest funding round raises the company’s total funding to more than $600 million.
Duchy’s co-founder and CEO Ross Lipson spoke to me yesterday about the company’s serious tailwinds, driven by social change in widespread adoption of cannabis products, health and wellness benefits, and more states passing friendlier regulations. Is.
“The verdict has come, and cannabis is a force for good. This is the biggest development we are excited about,” Lipson told Nerdshala. “The cannabis space is the fastest-growing industry, growing 35 percent year over year. % Increased. The Duchy is working with more than 5,000 dispensaries in North America and has processed $14 billion in annual sales for those dispensaries. We have seen 100% year on year growth with dispensaries. “
Indeed, the Duchy is constantly working to advance the industry with continuing education on the benefits of cannabis and to support more legalization and regulatory work. Cannabis is seeing more startups bringing technology into the fold, attracting talent and investment. In April, Crunchbase reported that $357 million invested in cannabis companies so far in 2021, while the prophet says The US cannabis industry will be worth $100 billion by 2030.
Earlier this year, Nerdshala spoke to cannabis venture capital investors. Morgan Paxia, managing director of Poseidon Investment Management, said that “2011 could be nothing short of amazing for our industry. We expect huge demand in capital inflows, bringing more IPOs in good public markets, lots of M&A and new innovative startups coming on the scene.
Meanwhile, Lipson said the Duchy had a long relationship with D1 Capital, and was in constant communication with existing investors, about the business and its clients. To meet the demand, both the Duchy and D1 decided that this was the right time to invest in accelerating the mission to streamline dispensary operations.
Lipson said the Duchy has already made a $100 million commitment to invest in R&D over the next 12 months, so some of the new funding will be deployed. It is also adding to the company’s employee base of 500 people in 40 states and Canada.
Now that the company has entered Series D territory, I asked Lipson if the IPO was part of the company’s future goals, and he said, “We’re always looking at all opportunities.”
As for the future of the cannabis industry, he said we will continue to adopt across all sectors, especially as more people are educated to find the right products and modalities and more states legalize cannabis.
“There are other initiatives, such as safe banking act to help banks provide services for cannabis-related businesses and more act,” he added. “We do not see federal legalization in the near term, but are optimistic that it will come.”