The legendary rapper and face of the modern marijuana movement, Snoop Dogg, is investing in his own chosen field of expertise.
The rapper's venture capitol firm, Casa Verde Capitol, took part in raising $10 million for a new marijuana startup, Eaze. The money raised for the startup was a joint venture from investors including DCM Ventures, 500 Startups, Fresh VC, and Snoop's Casa Verde Capitol.
Eaze is a marijuana delivery app that works by connecting California's medical marijuana community with local dispensaries. It seeks to provide delivery within a 15-minute timeframe. The San Francisco-based startup was founded by early Yammer employee Keith McCarthy. Initially the company raised $1.5 million in seed funding and was one of the first marijuana companies to receive money from institutional investors, who historically had been skeptical about putting their funds into the cannabis industry. It probably didn't hurt when the company announced a possible drone delivery service in the future, garnering themselves some extra press around the same time as the initial round of funding.
The investment community seems less reluctant to invest in companies like Eaze and the similar Meadow app because they provide the technology for the dispensaries, and do not technically grow or sell. This makes these companies look like a safer bet in the eyes of investors, rather than putting their money toward other marijuana-related startups that are still technically breaking the law. Just last week, Privateer Holdings — the Seattle-based startup that plans to bring Bob Marley-branded weed to market later this year — raised a record $75 million in funding.
This is not the first time that Snoop has thrown his hat into the investment ring — he has also invested in tech startups like Reddit and the stock trading platform, Robinhood, in recent months. Eaze also has plans to expand outside the Bay Area to other parts of California and eventually other states.