In episode 25 of the Investing in Cannabis Podcast, Brandon David interviews Ben Curren of Green Bits, discussing the company’s point-of-sale service designed specifically for cannabis companies. Founded on March 24, 2014, Green Bits has been growing steadily and building out its service to help canna-businesses grow and stay legal. Green Bits was also named the first runner-up at TechCrunch Disrupt, the first time in history that a cannabis technology company had been invited to participate.

SUMMARY

• Software for point-of-sale inventory management and compliance for dispensaries
• Operates as iPad app
• Curren worked at Intuit’s QuickBooks and other software companies, including Outright, which he co-founded (with his current team)
• Secret sauce is taking fairly complex processes and making them easy for budtenders to use
• Market-share in Washington is over 50% after launching July 7th, 2014
• Sold previous company in 2012 and stayed on for a year, but  got bored after six months.  Went to a conference in Washington and felt compliance requirements were an opportunity given other software options that were too complex
• Early customers bought before software was even completed
• Tracing product sold back to seed is what makes it so complex
• Oregon will be implementing this requirement later this year
• All of the software is built on a foundation of traceability, which is different from competitors
• Scanning of bar code is what makes it easy for budtenders to use
• Retailers have demanded that processors and producers include bar codes
• Really helped Uncle Ike’s, a large Seattle store reduce lines at its 10 registers
• Looking to collaborate with Weedmaps and Leafly
• Will expand to OR, CA and CO, but focused on WA now
• Decided to start where there was a green field rather than CO, which had systems installed already.  WA licensing process was spread out over time, making it more attractive to enter
• No outside capital yet – the three co-founders have funded
• 2/3 of customers pre-pay annually
• Very close to cash-flow positive
• Addressable market will increase in Washington, and now going after OR and CO, so company may look to raise cash to fund growth (sales primarily)
• 0% churn so far, 5 month payback on cost of customer acquisition
• Curren feels like they are slightly ahead of competition as they continue to refine product with team of three engineers
• TechCrunch was a last-minute entry for the company after the entry deadline was extended, surprised to get in
• Curren wanted to prove that this is a real industry
• Plans to be in CA before 2018 but after CO and OR
• Looking to hire!

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