Financing Led by 2 Top Cannabis & Culture-Tech Investors
NEW YORK, NY (November 14, 2018) – Hemper, a cannabis accessories and lifestyle brand that designs and produces products for consumers and industry partners, today announced that it has signed definitive agreements to close a $10 million Series A financing round to support the company’s growth. This new financing follows the closing of a $1 million seed round this past summer.
The Series A round was led by Poseidon Asset Management of San Francisco, an investment management company founded in 2013 to invest exclusively in the cannabis industry, and existing investor Evolution Corporate Advisors, a New York-based venture investor focused on culture-tech investments that was the sole investor in Hemper’s seed round. Hemper will use the new capital to accelerate sales, marketing and product development as well as to expand into new geographic markets.
Hemper launched in 2015 as a curator of monthly, limited-run cannabis accessory boxes and now has in excess of 10,000 monthly subscribers with more than 250,000 boxes shipped to date. The company’s limited-run boxes include celebrity-designed and curated editions with original artwork that have become collectors’ items. The company also designs and manufactures its own innovative smoking accessories, selling them through its online platform and in more than 1,000 stores nationwide. Retail distribution is expected to hit 3,000 stores by the end of 2019.
Hemper’s rapid growth has paralleled the acceleration of the marijuana legalization movement and associated destigmatization of cannabis use in the U.S. Nine states, the District of Columbia and Canada now permit recreational marijuana use, and 30 states have legalized medical marijuana with four more on the November ballot.
“Hemper has evolved from a monthly subscription service providing novel smoking and replenishment accessories to a cult following to become a diversified brand with well-designed and innovative products that are now being purchased by a more mainstream audience in addition to our core fans,” said Hemper CEO Bryan Gerber, who founded the company with CFO Ravjot (RJ) Bhasin and COO Henry Kochhar.
We are witnessing a strong uptick in consumer demand and broadening of our customer base. This financing will help us to meet this new demand, develop new items to expand our product portfolio, and serve a growing market whose consumers are demanding better quality.
Hemper CEO Bryan Gerber
“The cannabis market is witnessing a transition to a more demanding and mainstream user base with the growing acceptance of cannabis use, and Hemper is perfectly positioned to take advantage of that broadening consumer profile,” said Poseidon’s Emily Paxhia.
“Hemper’s ‘Apple-esque’ attention to design and detail and Supreme-like cult following have enabled them to attract a consumer base that has been significantly underserved,” said Evolution Corporate Advisors’ Gregg Smith.
Both Poseidon and Evolution Corporate Advisors have also invested in other disruptive smoking-and-vaping-related companies, including market leaders PAX Labs and JUUL Labs.
About Hemper
Hemper is a diversified cannabis accessories and lifestyle brand that designs and sells innovative products for the smoking market to consumers and industry partners. For more information, visit https://www.hemper.co.
Source: Company
