SEATTLE, — Headset, Inc., a leading retail analytics firm for cannabis-related businesses, announced today it has closed $2.5 million in financing as it ramps up its sophisticated suite of data products.
Hypur Ventures, a leading-edge venture capital fund headquartered in Arizona, and Salveo Capital, a Chicago-based private-equity fund specializing in cannabis sector investments, have partnered with Headset to provide a deeper, richer set of tools for the emerging market.
With this most recent fundraising, we are excited to be able to accelerate development and adoption of Headset products across all legal cannabis markets. Headset is well positioned to help the cannabis industry make more informed business decisions supported by retail transaction data.
As the cannabis industry matures — eight states now have legalized recreational use and another 29 have medical marijuana programs — business intelligence is the key differentiator among successful and failing enterprises. Legal U.S. cannabis sales skyrocketed 17 percent to $5.4 billion in 2015. Most analysts forecast 25 percent compound annual growth in the next five years, expanding to market to 21.8 billion by 2020. As a comparison, this explosive industry growth curve mimics that of the cable TV business in the 1990s, which enjoyed a 19 percent annual growth and the broadband internet industry of the 2000s (29 percent).
For years, cannabis company’s struggled to tap into this revenue stream, suffering from a lack of actionable data insights that would inform business decisions. Headset, with its proprietary analytics, gives clients the information and tools to grow their business.
“Headset specializes in seeing ahead of the curve in terms of trends and innovation in the hyper-competitive cannabis market,” said Hypur Managing Director Christopher Male. “There’s a lot of synergy with the ecosystem of the Hypur Ventures portfolio.”
“Salveo Capital is excited to be partnered with Headset and its team,” said Managing Partner Michael Gruber. “Actionable data is critical to running a successful business, and Headset is empowering brands, product manufacturers, and retailers with insights not available previously. Headset’s products will be a critical tool to a cannabis company’s success.”
With the $2.5 million infusion, Headset moves into 2017 in a strong position to help businesses as the new legal landscape expands. It will help close the information gap that has hampered companies in this emerging industry.
Headset published Washington’s Growing CBD Market: The Secret is Out, shortly after Hemp Business Journal published The CBD Report, highlighting important developments in the Washington CBD market. HBJ will be will be sharing this data and market highlights from the Headset report in upcoming posts and market reports.