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Cannabis startup CannVaLate raises $4 million in seven days in oversubscribed Series A, just six months after launch
Founded little over six months ago, cannabis startup CannVaLate received its licence to sell medicinal marijuana just this month, but it’s already raised $4 million in Series A funding and is about to open its Series B.
The startup was targeting $1.5 million through the raise, with a high cap of $4 million, but was oversubscribed within just seven days.
CannVaLate provides a platform connecting suppliers of medicinal marijuana with the doctors who can prescribe it — and therefore, the patients who could benefit from it the most.
Co-founder and char Sud Agarwal has a background as a medical doctor, specialising as an anaesthetist, and is also former medical director of ASX-listed medicinal cannabis company Cann Group.
He launched CannVaLate in April this year, alongside co-founders Darryl Davies and Asaf Katz.
The startup has also secured Nick Bell — founder of digital marketing agency WME and number 19 on the Australian Financial Review’s 2018 Young Rich List — as an investor and director of marketing.
Although medicinal cannabis was legalised in Australia in 2016, Agarwal tells StartupSmart there have only been about 1,300 subscriptions written, to date.
There are about 20 listed stocks in the cannabis space in Australia, he says, with a combined value of over $1 billion.
“In spite of that, almost all of them are pre-revenue,” he says.
There’s a working industry, and a market of those who could benefit from it, but “no one connected the two,” he adds.
“Very few patients are actually receiving it.”
Launching a startup that would act as a trusted middleman was “an overnight decision,” Agarwal says.
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