By Nancy Dahlberg
Cannabis software startup Springbig, based in Boca Raton, raised an $11.5 million Series B funding round.
The round was led by TVC Capital, a San Diego-based venture fund, with participation from Denver cannabis fund Key Investment Partners and current investors Argonautic Ventures, Halley Venture Capital and Salex Capital.
The round brings Springbig’s total funding to $20.5 million, according to Business Insider, which broke the news.
Springbig, founded in 2017, is the leading provider in customer-loyalty and communications solutions for dispensaries and cannabis retailers; it is currently used by more than 1,400 retailers across the U.S. and Canada. The company said it plans to use the funds to accelerate the growth of its platform and expand throughout the U.S. as well as grow in Canada, a market it entered last year.
Founder and CEO Jeffrey Harris told Business Insider the startup was looking for a technology fund rather than a cannabis fund to lead the round because as a SaaS company, it needed an investor that knew software inside and out. “Just through the due diligence process, I learned a bunch of things that we’re already implementing just by the questions they were asking us,” he told the publication.
Springbig offers CRM programs that capture key customer data and integrates with existing dispensary POS systems and provides a custom cannabis loyalty platform embedded with advanced marketing tools to retain customers and sends targeted and personalized SMS campaigns based on customer interest. In June, Springbig launched a marketing platform in June that allows brands to directly reach cannabis consumers through targeted MMS and SMS messages while staying compliant with regulations.
"We are working diligently to provide state-of-the-art, compliant marketing technology to an industry riddled with stringent regulations. This capital will help us provide even more value to our customers across North America and introduce our solutions to an even larger base of both Brand and Retail clients," Harris said in the announcement.
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