Yearly Archives: 2020

News: The New York Times launches an AR-enabled crossword on Instagram

The New York Times is bringing its signature crosswords game into augmented reality. The media company announced this morning it’s launching a new AR-enabled game, “Shattered Crosswords,” on Instagram, where players will be able to solve clues by finding spinning broken crossword pieces in AR. When the right vantage point is achieved, players will find

The New York Times is bringing its signature crosswords game into augmented reality. The media company announced this morning it’s launching a new AR-enabled game, “Shattered Crosswords,” on Instagram, where players will be able to solve clues by finding spinning broken crossword pieces in AR. When the right vantage point is achieved, players will find the words hidden among the shards above the puzzle.

The concept is similar to those found in other 3D puzzlers, like Polysphere, for example, where you swipe to rotate broken pieces to see a complete picture. But in this case, The NYT has made the whole gaming experience appear in augmented reality, as well.

The new game was built using technology from Facebook’s Spark AR platform, the company says, and it’s the first time The NYT has created an AR gaming experience.

However, it’s not the first time The NYT has worked with AR technology.

This fall, The New York Times announced a multi-year collaboration with Facebook focused on publishing a series of AR-driven reporting on Instagram. The reports would use AR technology to tell stories in a more visual and interactive way. To support its new efforts, The NYT also launched its own AR Lab with a staff of over a dozen employees who would work alongside a dedicated newsroom team to develop the AR journalism content.

To date, the Lab has helped produce visual stories tied to the centennial of women’s suffrage, the science behind the effectiveness of face masks and coverage of the California wildfires.

The NYT had begun to experiment with AR in previous years, too, though not in partnership with Facebook. In 2018, for example, it announced it would begin using augmented reality to tell stories within its own native app for iOS and Android.

Before today, The NYT did feature “live solves” of its Crossword on social media platforms, including Twitter and Facebook, as a way to engage players on social media. But these were not standalone games or built with AR — they were viewing experiences.

That said, the new game itself may have limited appeal, beyond being an interesting demo of AR from The NYT. The puzzle is too small and simple to appeal to any serious crossword fans, and the process of finding clues in the shards requires gestures and movement, which can get frustrating after some time. It doesn’t move as smoothly as something like Polysphere, either, we found.

It’s not clear who would return to this sort of puzzle on a regular basis, compared with traditional mobile games or even the standard crossword puzzle.

The “Shattered Crosswords” game is available on the @NYTimes Instagram profile page under the “Effects” tab, alongside the company’s other AR reports. It works on both iOS and Android platforms.

News: StepZen snares $8M seed to build data integration API

StepZen, a new startup from the crew who gave you Apigee (which was sold to Google in 2016 for $625 million) had a different vision for their latest company. They are building a single API that pulls data from disparate sources to help developers deliver more complex customer experiences online. Today, the startup emerged from

StepZen, a new startup from the crew who gave you Apigee (which was sold to Google in 2016 for $625 million) had a different vision for their latest company. They are building a single API that pulls data from disparate sources to help developers deliver more complex customer experiences online.

Today, the startup emerged from stealth and announced an $8 million seed investment from Neotribe Ventures and Wing Venture Capital .

With years of experience working with APIs, the founders wanted to take that a step further says CEO and co-founder Anant Jhingran. “StepZen is a product that lets front end developers easily create and consume one API for all the data they need from the back end,” he explained.

This is all in the service of providing a smoother, more consistent customer experience. That means whether you are on an eCommerce site accessing your order history or a banking app grabbing your current balance, these scenarios require pulling data from various back end data resources. Connecting to those resources is a time-consuming task and StepZen wants to simplify that for developers.

“Developers spend an enormous amount of time deploying and managing code that accesses the back end, and what StepZen wants to do is to give them that time back,” he said.

Instead of manually writing code to pull this data, StepZen enables developers to simply provide configuration information and credentials to connect to these back end data sources, and then it builds a single API that handles all of the heavy lifting of pulling that data and presenting it when needed.

Jhingran uses the example of presenting a list of open orders for a customer. It sounds simple enough, but once you consider that the data could live in several places including the CRM system, the order system or with your courier, that means accessing at least three separate and highly disparate systems. StepZen will help pull this all together via its API and present it smoothly to the user.

Today the company has 11 employees including the three founders with plans to add another 8 or so in 2021. As they do that, CBO and co-founder Helen Whelan says that they are working to build a diverse and inclusive company. While the founding team is itself diverse, they want to hire employees with diverse backgrounds and ways of thinking to build the most complete product and company.

“For the first 10 or so employees, we tapped into the networks of the people who’ve worked with, people who you know can do a great job. Then I think it’s about deliberately expanding from there and deliberately taking the time that you need to explore and expand your pipeline of candidates,” she said.

The company is just 9 months old and has been spending most of this year building the solution and working with pre-alpha users. Today the product is in alpha with plans to release it as a software service early next year.

As the company emerges from stealth, it’s looking to continue building the product and looking for ways to remove as much complexity as possible. “We know how to do the hard things on the back end. We’ve got the database technologies and the API technologies down, and it’s now about finding how to make all of that simple on the outside and easy for developers to use, ” Whelan said.

News: Activism platform actionable helps users be proactive about the causes they love

In 2016, when the world felt like an entirely different place, Jordan Hewson launched a platform called Speakable. It was meant to let news readers take action on a cause or issue in the very moment they cared most: while reading a news article about it. The company partnered with publishers and NGOs to deliver

In 2016, when the world felt like an entirely different place, Jordan Hewson launched a platform called Speakable. It was meant to let news readers take action on a cause or issue in the very moment they cared most: while reading a news article about it. The company partnered with publishers and NGOs to deliver an action button, right on the publisher’s website.

Skip forward to today, and people have become far more proactive about the causes they care about. That’s why Hewson is launching a new product called actionable, a library of actions mapped across dozens of causes, giving the user a clear view into how they can do something about the things they care about most.

Though donations are an option across the platform, there are other methods by which users can take action, including volunteering, contacting your representatives, and signing petitions.

“We were founded before the 2016 election,” said Hewson. “And Speakable was based on the hypothesis that if we didn’t make action easy, people wouldn’t do it. But so much has changed, politically and socially, that people are really breaking down the doors to find out ways that they can help in this moment that we’re in. So we really wanted to be able to provide our users with a platform where they can proactively seek out things that they want to do and deepen their community experience.”

Issues on the platform include Education, Equal Rights, Environment, Health, Migration, Politics, Poverty, Racial Justice and more. When a user clicks on an issue, actionable breaks the results down into the type of action the user might take, from donating to volunteering to signing petitions. The platform also drills down into the specific mission of the organization to give users a clear look at how they’re spending their resources.

When Speakable launched, it offered its services for free in the hopes of scaling up rapidly. Today, the platform charges a 3 percent service fee for donations made through the platform, but Hewson doesn’t see that as the company’s primary revenue generator.

Rather, Speakable is partnering with brands to sponsor action buttons for their own purpose-based initiatives. Hewson explains that might take the form of a matching campaign or sponsoring the ability for you to reach out to your legislator on a certain issue, giving the publishers another way to generate revenue, as well as Speakable, while scaling campaigns and initiatives on behalf of the brand partners.

The company is currently partnered with about 90 publishers and, via an API, aims to list all the non-profits that exist in the States.

Interestingly, actionable doesn’t necessarily rank or curate the NGOs on its platform in an effort to maintain neutrality among non-profits, according to Hewson.

Speakable has raised $2.5 million since inception. It has also powered 10 million actions, with the majority of those actions coming in 2020, with 5.2 million actions taken this year. Just this past week, in fact, Speakable facilitated more than $1.3 million in donations in a single day to Feeding America in partnership with the TODAY show.

The team is about 15 people. Sixty percent identify as women at the female-founded company, with 20 percent identifying as BIPOC and 10 percent identifying as LGBTQI+.

News: VergeSense raises $12M Series B for its workplace analytics service

VergeSense, a startup that uses machine vision to help businesses better understand how their office spaces are being utilized, today announced that it has raised a $12 million Series B funding round led by Tola Capital. Including the company’s $9 million Series A round, which it raised earlier this year, VergeSense has now raised a

VergeSense, a startup that uses machine vision to help businesses better understand how their office spaces are being utilized, today announced that it has raised a $12 million Series B funding round led by Tola Capital.

Including the company’s $9 million Series A round, which it raised earlier this year, VergeSense has now raised a total of $22.6 million. Previous investors include JLL Spark, Allegion Ventures, MetaProp, Y Combinator, Pathbreaker Ventures and West Ventures.

Given the COVID-19 pandemic, it’s maybe no surprise that VergeSense would be seeing quite a bit of demand for its service and sensors. While the company was seeing strong growth since its launch in 2017, the pandemic is accelerating the move to smarter office spaces. As VergeSense CEO and co-founder Dan Ryan told me, over the course of the last few months, the company added new features to help businesses manage social distancing, for example, and to better understand where in a given office they should intensify their cleaning protocols.

VergeSense sensor

It’s also becoming increasingly clear that even after we get the pandemic under control, office spaces — and office work — will look radically different. “It’s going to be a sort of a hybrid model of working, which, pre-pandemic, was already something that was happening — companies were experimenting with this — but now it’s been turbocharged,” Ryan said. “We never anticipated any of this, but I think it’s a great example of the possibilities that you can help support when you have this intelligent infrastructure all around you that allows you to almost program the physical world.”

Another new feature the company launched this year allows its tools to register when a seat is likely occupied, even though nobody is in it right now, by looking for backpacks and other signs that would signal that a desk is in use.

VergeSense currently has customers in 29 countries. These include the likes of Shell, Quicken Loans, Roche, Cisco and Telus. In total, the company’s tools watch more than 40 million square feet of space now.

Image Credits: VergeSense

As Ryan told me, the company saw quite a bit of inbound interest from investors this year and the team wanted to capitalize on the current trends. “As we look forward to ’21, especially now that this transition to an agile hybrid seating model is going to be turbocharged, we were preparing for and planning for additional growth there as well. So this was sort of opportunistic opportunity to team up with Tola to help go to the next level,” Ryan explained.

The company plans to use the new funding to continue to work on its core computer vision capabilities and hardware, but as Ryan noted, one of the focus areas for VergeSense in 2021 will also include new partnerships and integrations with tools for booking desks and rooms, as well as building automation systems. To do so, it plans to double its headcount and hire across all departments.

VergeSense is obviously not the only company playing in this space. Swiss startup Locatee, for example, raised a Series A round for its service earlier this year, though it uses network data to measure occupancy and not the kind of dedicated sensors that VergeSense is developing. Other players include the likes of Density, Basking and SteerPath.

News: Astroscale ships its space junk removal demonstration satellite for March 2021 mission

Japanese startup Astroscale has shipped its ELSA-d spacecraft to the Baikonur Cosmodrome in Kazahkstan, where it will be integrated with a Soyuz rocket for a launch scheduled for March of next year. This is a crucial mission for Astroscale, since it’ll be the first in-space demonstration of the company’s technology for de-orbiting space debris, a

Japanese startup Astroscale has shipped its ELSA-d spacecraft to the Baikonur Cosmodrome in Kazahkstan, where it will be integrated with a Soyuz rocket for a launch scheduled for March of next year. This is a crucial mission for Astroscale, since it’ll be the first in-space demonstration of the company’s technology for de-orbiting space debris, a cornerstone of its proposed space sustainability service business.

The ELSA-d mission by Astroscale is a small satellite mission that will demonstrate two key technologies that enable the company’s vision for orbital debris removal. First will be a targeting component, demonstrating an ability to locate and dock with a piece of space debris, using positioning sensors including GPS and laser locating technologies. That will be used by a so-called ‘servicer’ satellite to find and attach to a ‘target’ satellite launched at the same time, which will stand in for a potential piece of debris.

Astroscale intends to dock and release with the ‘target’ using its ‘servicer’ multiple times over the course of the mission, showing that it can identify and capture uncontrolled objects in space, and that it can maneuver them for controlled de-orbit. This will basically prove out the feasibility of the technology underlying its business model, and set it up for future commercial operations.

In October, Astroscale announced that it had raised $51 million, making its total raised to date $191 million. The company also acquired the staff and IP of a company called Effective Space Solutions in June, which it will use to build out the geostationary servicing arm of its business, in addition to the LEO operations that ELSA-d will demonstrate.

News: Liberis, the embedded finance provider for SMEs, raises additional £70M in equity and debt

Liberis, the U.K.-based fintech that provides finance for small businesses as an alternative to a traditional bank loan or extended overdraft, has replenished its own coffers with £70 million in funding. The round is a mixture of equity and debt, although the company is declining to disclose the percentage split, so we can likely chalk

Liberis, the U.K.-based fintech that provides finance for small businesses as an alternative to a traditional bank loan or extended overdraft, has replenished its own coffers with £70 million in funding. The round is a mixture of equity and debt, although the company is declining to disclose the percentage split, so we can likely chalk this up as mostly debt to fund the loans Liberis issues.

Providing the financing are previous backers British Business Investments, Paragon Bank and BCI Europe, along with new partner Silicon Valley Bank (SVB). It brings the total funding raised by Liberis to £200 million, including more than £50 million in equity funding. “The new funds will be used to fuel company growth, launch new products and markets, and provide additional customer financing solutions,” says the fintech.

To date, 2007-founded Liberis has provided over £500 million in financing to 16,000 SMEs across Europe, the U.S. and the U.K. (the product is available in five new countries: U.S., Finland, Sweden, Czech Republic and Slovakia). However, lending has really picked up lately, with £250 million lent in the past two years alone.

Liberis provides SMEs with funding from £1,000 to £300,000 based on projected credit and debit card sales. However, the clever part is that the loan is paid back via a pre-agreed percentage of the business’ digital transactions. In other words, bar any minimum monthly payment agreed, the repayment schedule is directly tied to the size and pace of a business’ card transactions.

Noteworthy, the go-to-market strategy has shifted toward B2B2B — or “embedded finance” — with Liberis now predominantly partnering with marketplaces, software providers and acquirers, such as Worldpay from FIS and Global Payments. These partners integrate with Liberis to offer personalised pre-approved revenue-based financing to their end customers.

“Liberis’ core business is to enable partners to offer embedded business finance to their customers,” Rob Straathof, CEO of Liberis, tells TechCrunch. “Back in 2015, we launched one of the world’s first embedded business finance partnerships with Worldpay from FIS, and have significantly expanded our partnerships across the globe over the past years, including Global Payments, Opayo (Sagepay), EPOS Now and Worldpay U.S.”

Straathof says that by integrating Liberis’ business finance platform into a partner’s existing ecosystem and customer experience, the fintech is able to provide “instant value” for its partners and the SMEs they support.

“Through our single API integration, we receive privileged data from our partners which enables Liberis to offer hyper-personalised and pre-approved finance to SMEs,” he explains. “By making finance more personalised, intuitive and accessible for SMEs, we in turn empower our partners to unlock greater customer value by improving engagement, satisfaction and loyalty which lowers churn. Ultimately, everyone wins”.

Comments Folake Shasanya, SVB’s head of EMEA warehouse financing: “We are pleased to become a new funding partner to Liberis and have been impressed with their ability to embed financing solutions across technology platforms, payments providers and more. At SVB, supporting innovation is in our DNA and we are delighted to provide this global growth opportunity to Liberis through our warehouse and venture debt products”.

News: Asia’s casino capital Macau to host a CES alternative in 2021

Macau, the former Portuguese colony that is now the world’s biggest gambling center, is planning to host a tech fair next year to match the famed CES in Las Vegas. The brains behind the “Beyond” conference are Lu Gang, founder of Chinese tech news media company TechNode, which was TechCrunch’s former China partner, and Jason

Macau, the former Portuguese colony that is now the world’s biggest gambling center, is planning to host a tech fair next year to match the famed CES in Las Vegas.

The brains behind the “Beyond” conference are Lu Gang, founder of Chinese tech news media company TechNode, which was TechCrunch’s former China partner, and Jason Ho, a Macanese venture investor and a member of the CPPCC Beijing, China’s top political advisory body, who also enjoys deep connections in the Macau government.

The event, which is partially funded by the Macau government, signals the region’s long game to diversify its casino-focused economy for its population of 600,000. The fair has also won “support” from the Guangdong provincial government, which is pitching its own “Greater Bay Area” comprising Shenzhen, Hong Kong, Macau and other cities in the region, to rival the San Francisco Bay Area.

“Macau has very good infrastructure. With the entertainment industry and the hotels, I think it’s very suitable for doing an event that could potentially attract people to join,” Ho told TechCrunch in an interview.

Unlike CES, the tech fair will have a focus beyond consumer and enterprise electronics to include government-facing technology, Ho said. It’s inviting companies across the globe that specialize in social and environmental technology, life sciences, advanced technology, and “new infrastructure,” a Chinese buzzword referring to innovation in the likes of 5G, smart cities and transportation.

Ho envisions the event will be a bridge between China and the rest of the world, given Macau’s “neutral” position in the geopolitical landscape.

“I think Macau can be a platform that could help other countries to get into Mainland China or even for Mainland China companies to go to APAC or Middle Eastern countries,” Ho said.

“I think Hong Kong and Macau are the only ones that could host a very international and neutral event that people would like to join and won’t feel like that’s a very government event.”

Many argue that Hong Kong’s special status as a semiautonomous region is at stake as Beijing tightens its grip over the former British colony. Rise, a popular tech conference that Web Summit hosted in Hong Kong up until 2019, has been relocated to Kuala Lumpur due to ongoing political tensions in the city.

Ho admitted Macau will potentially face the same challenge, but he believed the exit of major international tech fairs, from Rise in Hong Kong to CES Asia in Shanghai (in part due to the U.S.-China trade war), should open up opportunities for Macau to attract attendees from Asia’s tech community and others with an interest in China.

“I always have a big dream that we want to compare ourselves eventually with Singapore,” Ho said, adding that the Macau government is working to introduce policies that are friendly to overseas businesses.

Beyond is scheduled to take place in mid-June next year, but the viability of the event will no doubt be contingent on the development of COVID-19 control in the next few months.

Aside from tech corporations and startups, Beyond also looks to attract influential members from academia, society, and provincial governments across China. The event organizer is in talks with ByteDance, DJI, SenseTime, Alibaba, Tencent, Foxconn, BMW and more to invite executives from the giants to attend.

News: Google leads $145M investment in India’s Glance; backs DailyHunt in $100M round

Indian startup Glance, which serves news, media content, and games on the lock screen of over 100 million smartphones, has a new investor: Google. The two-year-old Glance, which is part of advertising giant InMobi Group, said on Tuesday that it has raised $145 million in a new financing round from Google and existing investor Mithril

Indian startup Glance, which serves news, media content, and games on the lock screen of over 100 million smartphones, has a new investor: Google.

The two-year-old Glance, which is part of advertising giant InMobi Group, said on Tuesday that it has raised $145 million in a new financing round from Google and existing investor Mithril Partners. The new round values Glance at over $1 billion, a person familiar with the matter said, making the startup a unicorn.

Glance uses AI to offer personalized experience to its users. The service replaces the otherwise empty lock screen with locally relevant news, stories, and casual games. Late last year, InMobi acquired Roposo, a Gurgaon-headquartered startup, that has enabled it to introduce short-form videos on the platform. Google is also investing in Roposo, a startup that Glance acquired last year. Roposo is a short video platform with over 33 million monthly active users. These users spend about 20 minutes consuming content across multiple genres in more than 10 languages on the app everyday. 

Glance ships pre-installed on several smartphone models. The subsidiary maintains tie-ups with nearly every top Android smartphone vendor including Xiaomi,  the top player in India, and Samsung. The service has amassed over 115 million daily active users.

“Glance is a great example of innovation solving for mobile-first and mobile-only consumption, serving content across many of India’s local languages,” said Caesar Sengupta, VP, Google, in a statement. “Still too many Indians have trouble finding content to read or services they can use confidently, in their own language. And this significantly limits the value of the internet for them, particularly at a time like this when the internet is the lifeline of so many people. This investment underlines our strong belief in working with India’s innovative startups and work towards the shared goal of building a truly inclusive digital economy that will benefit everyone.” 

Naveen Tewari, founder and chief executive of Glance and InMobi Group, said the investment will pave the way for “deeper partnership between Google and Glance across product development, infrastructure, and global market expansion.” The startup plans to deploy the fresh capital to expand in the U.S.

Investment in DailyHunt

Google said on Tuesday that it is also investing in VerSe Innovation, the parent firm of Indian startup DailyHunt. Across its apps including DailyHunt and short-video platform Josh, DailyHunt claims to serve over 300 million users news and entertainment content in 14 Indian languages. The startup said it has completed a round of over $100 million from Google, Microsoft, and AlphaWave among other investors and this new round values it at over $1 billion, making it a unicorn.

DailyHunt — which is co-run by Umang Bedi, former Facebook India head — plans to deploy the fresh capital to scale Josh app, the augmentation of local language content offerings, the development of content creator ecosystem, innovation in AI and ML and the growth of its truly “made-in-Bharat-for-Bharat short-video platform,” it said.

Josh and Roposo are among over a dozen apps in India that are attempting to fill the void New Delhi created after banning TikTok in late June in the country.

Google is writing both these checks from India Digitization Fund that it unveiled this year. Google has committed to invest $10 billion in India over the course of next few years. Prior to today, the company invested $4.5 billion from this fund in Indian telecom giant Jio Platforms.

More to follow…

News: Horizon Robotics, a Chinese rival to Nvidia, seeks to raise over $700M

In their rush to offer alternatives to advanced western chipsets, Chinese semiconductor companies are racking up large fundings from investors. Horizon Robotics, a five-year-old unicorn specializing in AI chips for robots and autonomous vehicles, announced Tuesday that it has secured $150 million in funding. The proceeds are the first close of an over $700 million

In their rush to offer alternatives to advanced western chipsets, Chinese semiconductor companies are racking up large fundings from investors. Horizon Robotics, a five-year-old unicorn specializing in AI chips for robots and autonomous vehicles, announced Tuesday that it has secured $150 million in funding.

The proceeds are the first close of an over $700 million Series C round that Horizon is seeking to raise. The partial funding is jointly led by prominent investors 5Y Capital (formerly Morningside Venture Capital), Hillhouse Capital, and Capital Today. Chinese brokerage Guotai Junan’s international arm and South Korean conglomerate KTB.

The round arrived less than two years after Horizon completed its $600 million Series B round, which valued the firm at $3 billion post-money and also saw the participation of prominent Korean financiers including SK China, the China subsidiary of conglomerate SK Group, and SK Hynix, SK’s semiconductor unit.

The startup, founded by a Baidu veteran, raised its Series A round of over $100 million led by Intel Capital in late 2017.

 

With the fresh capital, Horizon plans to hasten the development and commercialization of its automotive chips and autonomous driving solutions. It also aims to build an “open ecosystem” for industry partners.

For the past couple of years, China has been striving to wean dependence on western chip giants in sectors ranging from smartphones to vehicles. Local startups like Horizon Robotics and Black Sesame Technologies, as well as telecoms titan Huawei, are pouring resources into autonomous driving processors, hoping to match or overtake the technologies from Nvidia and Intel’s Mobileye.

Horizon’s OEM and Tier 1 auto partners, according to the firm, include Audi, Bosch, Continental, SAIC Motor and BYD.

75% of China’s ADAS (advanced driver-assistance system)-equipped cars and Level 3 (autonomous driving under certain circumstances) vehicles will be supported by Chinese suppliers by 2030, up from 20% in 2019, investment bank CITIC Securities projects.

News: Snoop Dogg’s Casa Verde Capital closes on $100 million as the cannabis industry bounces back

Casa Verde Capital, the investment fund co-founded by cannabis connoisseur Snoop Dogg (also known as Calvin Broadus), has closed on $100 million for its second investment fund, according to documents filed with the SEC. The fund, whose managing director, Karan Wadhera declined to comment for this article, has managed to raise more cash just as

Casa Verde Capital, the investment fund co-founded by cannabis connoisseur Snoop Dogg (also known as Calvin Broadus), has closed on $100 million for its second investment fund, according to documents filed with the SEC.

The fund, whose managing director, Karan Wadhera declined to comment for this article, has managed to raise more cash just as the market for cannabis-related products seems poised for another period of expansion.

“What happened to the public perception of the cannabis industry is not too dissimilar to the dotcom bubble of the late ’90s, where there was a lot of hype — a lot of it driven by public companies — and a lot of speculative trading and valuations that weren’t really founded in reality. [We’re talking about] projections multiple years out into the future, and then crazy revenue multiples on top of that,” Wadhera said of the last bust when he spoke to TechCrunch in July. “Things just got really frothy, and that eventually burst, and last April or May was sort of the apex of that moment. It’s when things started to trade off. And it’s been those names, the public names in particular, that have been hit particularly hard.”

Since then, the industry has come roaring back.

“Sitting here today, four-plus months into COVID, cannabis has really proved itself to be a non-cyclical industry. Cannabis has been deemed an essential business everywhere across the U.S. We had record sales in March, April and May, and the trend has continued,” Wadhera said in July. “And now that we are getting into an environment where governments are going to be looking for additional sources of tax revenue, the potential urgency around cannabis legalization is going to be there, which is going to be massively positive for the industry.”

There’s no indication of the target for the new venture capital fund, but with the new fundraising, Casa Verde more than doubles the size of its initial investment vehicle.

Since Broadus, Wadhera and a third partner and the founder of Cashmere Agency and Stampede Management Ted Chung launched their debut fund in 2018, weed businesses have endured a roller-coaster business cycle of boom and bust.

In spite of those market vagaries, Casa Verde has managed to build a portfolio that is now worth at least $200 million, according to people with knowledge of the firm. That money has come through several special purpose vehicles and other fundraising mechanisms raised alongside the flagship fund.

The overall market for cannabis and cannabinoid derivatives is expected to hit $34 billion by 2025 according to an analyst report seen by TechCrunch from the investment bank Cowen.

With Arizona, Montana, New Jersey, and South Dakota all passing adult-use cannabis legalization measures in their states, the investment bank predicted roughly 30 percent growth to their total addressable market estimates.

For its part, Casa Verde has always taken a broad view on the potential addressable market that cannabis and its chemical compounds could capture.

Nowhere is that more on view than in the firm’s latest investment in the sleep company, Proper.

 

“[Cannabis] is an input as well and its use case will go beyond how people think of cannabis stigmatically,” Wadhera said. “At its core, [Proper] is a company that’s helping us target this sleep epidemic. We think CBD and cannabis at large can play a big role in addressing that in a way that traditional products haven’t been able to.”

And what’s true for sleep is true for a number of other different applications as well, Wadhera has said in the past.

Casa Verde has already invested heavily across the pure-play opportunities in cannabis, with investments spanning delivery, supply chain logistics, brands, and retail.

But the health benefits that cannabinoids could have for all kinds of ailments open up a much larger market — as do the broad consumer opportunities should Congress accede to the wishes of more than 60 percent of the American electorate and legalize recreational cannabis use nationally.

And, as Wadhera told us in July, a Biden administration presents a potentially much more positive regulatory environment for the industry than the previous Trump administration did.

“I think Biden will be very helpful. He has laid out many of the things that he wants, and [while] he isn’t taking it as far as full-scale legalization, he’s certainly in favor of full-scale decriminalization, [meaning] letting states have full authority over what happens with their businesses, and also the rescheduling of cannabis down from the current Schedule 1 level,” Wadhera had said. “So all of that will be incredibly helpful and will bring a lot more players who will feel comfortable investing in the space and, potentially, acquiring some of these businesses, too.”

 

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