A software startup for marijuana dispensaries just raised more funding and added a veteran cannabis executive to its C-suite.
Leaf Trade said Tuesday it raised a $12.5 million Series B round led by Artemis Growth Partners, a cannabis-focused VC firm. The Chicago startup has now raised more than $22 million since it launched in 2016.
Led by founder and CEO James Yi and President Michael Piermont, Leaf Trade has built a wholesale cannabis marketplace and digital payment platform. Its tech is used by cultivators, retailers, distributors and dispensaries, and its platform facilitates nearly $2 billion in sales per year, the company said.
Leaf Trade currently operates in 24 states. It has focused primarily on "limited licensed" U.S. states that are relatively new to the legalized cannabis industry. But with this new funding, the startup plans to give added focus to the West Coast, where the marijuana industry is more mature, the company said.
Leaf Trade also said it has named Brian Ward as its chief financial officer. Ward was previously CFO at cannabis company Verano, which he led through an IPO.
Chicago's Hyde Park Angels also invested in the startup's round.
The funding comes as Chicago continues to establish itself as a hotbed for cannabis companies. Chicago is home to Cresco Labs, which is set to be the largest cannabis cultivator in the country after a planned $2 billion takeover of Columbia Care. The city is also the home base for startups like Fyllo, a cannabis marketing tech firm that's raised $100 million in funding.
