Dutchie, a four-year-old Bend, Oregon-based company that charges cannabis dispensaries monthly fees to build and manage their websites and manage orders, is on a roll this year, lifting its second grand round of funding. – this time an amount of $ 350 million Series D at a valuation of $ 3.75 billion.
The new valuation is more than double what was announced in March when Dutchie provided $ 200 million in Series C funding at a valuation of $ 1.7 billion. At the time, the valuation was about eight times the company’s $ 200 million valuation after closing a $ 35 million Series B financing last August.
The latest round of funding is led by D1 Capital Partners, with participation from existing investors including Tiger Global, Dragoneer, DFJ Growth, Thrive Capital, Gron Ventures and Casa Verde Capital. New investors include Willoughby Capital, Glynn Capital and Park West Asset Management. The latest funding round brings the company’s total funding to over $ 600 million.
Dutchie Co-Founder and CEO Ross Lipson told me yesterday about the company’s serious tailwinds driven by the societal shift of wider adoption of cannabis products, health benefits and the good. -be and more states adopting more favorable regulations.
“The verdict is in and cannabis is a force for good. It’s the biggest development we’re excited about, ”Lipson told TechCrunch. “The cannabis sector is the fastest growing industry, up 35% year over year. Dutchie works with more than 5,000 dispensaries in North America and has processed $ 14 billion in annualized sales for these dispensaries. We have seen 100% year-over-year growth with dispensaries. “
Indeed, Dutchie is continuously working to propel the industry forward with continuing education on the benefits of cannabis and supporting more legalizations and regulatory work. Cannabis is seeing more and more startups bring technology into the fold, attracting talent and investment. In April, Crunchbase announced that $ 357 million had been invested in cannabis companies so far in 2021, while forecasters say cannabis will represent a $ 100 billion industry in the United States by 2030. .
Earlier this year, TechCrunch spoke with cannabis venture capitalists. Morgan Paxhia, Managing Director of Poseidon Investment Management, said “2021 could be nothing short of amazing for our industry. We expect capital flows to pick up on a massive scale due to pent-up demand, good public markets bringing more IPOs, numerous mergers and acquisitions, and innovative new startups entering the scene. “
Meanwhile, Lipson said Dutchie has a long relationship with D1 Capital and, with existing investors, maintains constant communication about the company and its clients. To meet the demand, Dutchie and D1 decided it was time to invest in accelerating the mission of streamlining the clinic’s operations.
Dutchie has already committed to investing $ 100 million in R&D over the next 12 months, so that’s where some of the new funding will be deployed, Lipson said. It also adds 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 an IPO was one of the company’s future goals, and he said “we’re still looking for every opportunity.”
As for the future of the cannabis industry, he said we will continue to see adoption across the board, especially as more and more people are being trained to find the right product and modality. and that more states legalize cannabis.
“There are more initiatives, like the Safe Banking Act to help banks provide services to cannabis-related businesses and the More Act,” he added. “We don’t anticipate federal legalization in the short term, but we are optimistic that it will come. “