Cannabis finance company Bespoke Financial today announced that it has raised $ 8 million in a Series A financing round. Through this round, the company has brought key new investors to its corner as ‘she fights to provide financing solutions for companies in the cannabis sector.
Bespoke is a direct lender and provides several financing solutions to companies operating in cannabis. These short-term loans allow businesses to create credit with Bespoke, which then offers better terms on subsequent loans and products. The company says its volume of loan origins has grown exponentially, beating expectations by 25% in the current year. The company has deployed $ 120 million in gross merchandise volume to more than 2,000 cannabis licensees, flawless to date.
With this new funding round, Bespoke intends to launch new financing structures and expand its financing options through different distribution channels.
CEO and co-founder George Mancheil calls this round a pivotal moment for his company and a stamp of validation on the direction and products offered by Bespoke Financial. As he tells TechCrunch, this cycle provides several key partners for the growing startup.
The funding round was co-led by Casa Verde Capital and Sweat Equity Ventures of Snoop Dogg, as well as Ceres Group Holdings, Greenhouse Capital Partners, Co-Founder and Former Chairman of DoubleLine Capital Philip Barach, and Robery Stavis, a venture capital firm. based in New York.
This is Sweat Equity Ventures (SEV) ‘s first investment in a cannabis company. SEV, backed and partly funded by LinkedIn founder Reid Hoffman, is led by Dan Portillo and operates differently from traditional venture capital funds. SEV works with the founders to provide top engineering and business talent to its portfolio companies. In return for these services, SEV takes equity from companies instead of just issuing checks.
“This is our company’s first investment in the cannabis industry, and we are excited to partner with Bespoke as more states legalize cannabis use and the federal government considers legalization in Canada. nationwide. This partnership combines Bespoke’s financial and cannabis acumen with our team’s expertise in scaling innovative technology companies, and will provide cannabis companies with better access to streamlined financing while benefiting investors. with increased transparency and improved risk oversight, ”said Dan Portillo, Managing Partner of Sweat Equity Ventures, in a released statement.
Karan Wadhera, Managing Partner of Casa Verde Capital, says Bespoke Financial responds to the real needs of a growing industry. Casa Verde Capital previously invested in Bespoke Capital, notably in a funding round of $ 7 million in 2019.
Bespoke Mancheil CEO told TechCrunch his business is focused on being more than just a lender; it wants to be a modern finance company that allows it to act as a true partner with the cannabis industry.
With this $ 8 million funding, Bespoke Financial has raised $ 28 million to date. The company was founded in 2019 and, as of this announcement, has 12 employees.