Miami Tech & Startup News

Boca-based cannabis tech startup Springbig plans to go public via SPAC

Boca-based cannabis tech startup Springbig plans to go public via SPAC

Springbig has just announced its plans to go public by merging with Tuatara Capital Acquisition Corporation, a special purpose acquisition company (SPAC). The Boca Raton company, which has secured the Nasdaq ticker symbol SBIG, has gained notoriety for its cannabis marketing platform. 

Assuming the deal goes through as planned, the combined company will be valued at around $500 million. The transaction is on track to close in the first quarter of the 2022 fiscal year.

Jeffrey Harris, Founder and Chief Executive Officer of Springbig (pictured above), said in a statement: “We are thrilled to partner with TCAC and look forward to continuing to build our platform and broaden our offerings to take advantage of the significant growth potential at home and in the international cannabis markets.”

Previously, Springbig has landed almost $20 million in funding, including an $11.5M Series B round that they raised amidst the onset of the pandemic. In 2020, the startup acquired BudTender, a cannabis-focused survey company.

The main goal of the startup’s platform is to enable cannabis companies to increase customer retention and, ultimately, revenue. Springbig helps clients set up loyalty and rewards programs, which the company says increase foot traffic and boost sales. Through the platform, clients can also leverage text message marketing.

All the data collected from these various products are fed into Springbig’s CRM platform, which was developed specifically for companies in the cannabis industry. According to Springbig, all it takes is a few clicks for dispensaries to create targeted marketing campaigns based on real-time inventory data.

Founded in 2017, Springbig claims to be the largest loyalty and marketing platform in the cannabis industry – serving more than a thousand clients in the US and Canada. The startup reports that over 41 million consumers have interacted with its products. In the last year alone, the platform has processed more than 90 million transactions worth upwards of $7 billion gross merchandise value.

The U.S. cannabis market is rapidly expanding, and is on track to double over the next five years to more than $40 billion in revenue. Springbig’s vast repository of data gives the company unique insight into the cannabis industry. In a statement, the company highlighted its “robust pipeline of multiple potentially actionable M&A targets across various verticals,” and claims to actively identify acquisition opportunities.

Harris echoed this sentiment in an interview with Bloomberg: “There’s a tremendous opportunity for consolidation particularly on the tech side of the industry, and we feel we can be a consolidator.”

When Refresh Miami sat down with Springbig this past May, the company reported having 130 full-time employees and was planning to hire another 30 people this year. This tracks with Springbig’s overall growth: a reported CAGR of 105% since 2019, which will bring Springbig an estimated $24 million in revenue in 2021.

Boca Raton’s own Florida Atlantic University has been a strong talent pipeline for Springbig. “We have had great success working with students from Florida Atlantic University,” Harris told Refresh Miami. “We’re adding talent all the time. We would much rather find talent locally, but Florida is an attractive destination for out-of-state hires as well.”

Some of Springbig’s team earlier this year.

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Riley Kaminer