Debra Borchardt
Cannabis wholesale platform LeafLink raised $100 million in Series D financing led by CPMG, L2 Ventures, and Nosara Capital, alongside participation from existing investors. The company said that the investment will be funded in two tranches.
In addition to the fundraise news, CEO and co-founder Ryan Smith is stepping into the role of executive chairman, while President and Chief Operating Officer Artie Minson has been named the new CEO. Minson will oversee the day-to-day strategy and execution of the business; Smith will focus on long-term strategic initiatives, innovation, customer relationships, and government relations.
“Despite recent headwinds, the cannabis industry is poised for significant growth in the years ahead. Since the company’s inception, our team has built solutions that solve some of the industry’s most critical problems. The Series D financing provides us with a strong balance sheet that will enable continued innovation alongside our customers,” Smith said.
Raising Since 2017
The company said that the Series D investment enables LeafLink to support its customers’ evolving technology and operational needs through enhanced platform functionality.
In December, the company announced that it raised $40 million in a Series C investment round, led by Founders Fund. Additional participants included Thrive Capital, Nosara Capital, and Lerer Hippeau. At that time, the company said that its total venture funding came to more than $90 million and marked Founders Fund’s largest technology investment in the cannabis space.
In 2017, LeafLink raised $10 million in its Series A round, and in 2019, it captured $35 million in its Series B. LeafLink has now raised more than $230 million of equity and has access to a $250 million credit facility to provide liquidity to the cannabis supply chain.
Billionaires
In September, the company announced that its payment solutions had processed more than $1 billion in transactions since the company’s inception. Just a few month later, and LeafLink reported that its marketplace processes approximately $5 billion in annual transactions.
Since its founding in 2016, LeafLink has grown to become a significant partner of brands and retailers in the legal cannabis industry, serving approximately 50% of the U.S. wholesale cannabis industry across 30 markets.
Management Changes
In addition to the changes for Smith and Minson, LeafLink announced that Karan Gupta joined the company as chief technology officer, where he will lead the company’s engineering efforts. Prior to joining LeafLink, Gupta served in technical leadership roles for more than a decade, most recently as chief technology officer at Shift Technologies.
Also, co-founder and current Chief Technology Officer Zach Silverman has transitioned into a senior advisor role. Silverman will continue providing counsel and guidance to LeafLink’s management team and board of directors.
“As states across the U.S. continue to legalize cannabis, we’re looking forward to growing our partnership with the industry. Our continued goal is to help brands and retailers scale their businesses while operating safely, efficiently, and in compliance,” Minson said.
“Since joining the LeafLink team, I’ve been amazed at our team’s commitment and ability to deploy industry-first solutions for our customers. I’m incredibly excited about broadening our platform’s capabilities and deepening our customer relationships in the next phase of the Company’s growth.”
