Despite a renewed national focus on legalization and a rapidly expanding consumer base, cannabis companies remain challenged by regulatory standards that can prevent them from gaining access to capital quickly.
Los Angeles-based fintech company Bespoke Financial is on a mission to provide cannabis companies with access to the capital that they need in order to thrive as a business.
On Monday, the company announced the close of an $8 million Series A to further its mission. The raise was co-led by Snoop Dogg’s Casa Verde Capital and Sweat Equity Ventures.
Bespoke offers cannabis companies short-term loans to allow them to build credit. The company bills itself as the first fintech lender for canna-businesses in the U.S.
Bespoke’s credit performance database tracks over 2,000 cannabis license holders across the country. Allowing canna-businesses to build credit enables Bespoke to offer them better terms on subsequent loans and products later down the line.
“The strength and growth of this industry over these past few years validates our initial core thesis that cannabis presents a uniquely attractive opportunity within the broader debt landscape,” George Mancheril, Bespoke Financial co-founder and CEO, said in a statement.
Bespoke’s platform offers borrowers the ability to access capital within 24 hours, according to the company. As a result, canna-businesses have the opportunity to increase their purchasing power and scale their operations more efficiently.
Bespoke’s platform also offers these businesses a way to manage their payments, both to vendors and from customers, in one centralized location.
Following the latest raise, Bespoke will look to extend its flexible financing options across an array of distribution channels. The company also plans to launch additional financing products as it continues to scale.
Bespoke isn’t the only LA-based cannabis startup to raise funds this April. Earlier this month, cannabis resource planning platform Blaze closed on an $8 million Series A.
Additional investors Ceres Group Holdings and Greenhouse Capital Partners participated in the round, among others.
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