Denver-based Vangst has seen its hiring platform boom in the past year along with a swell of interest in legal cannabis jobs.
The cannabis industry in the United States is approaching nearly 400,000 people employed, a growth of nearly 25% over the last 12 months. In parallel with that growth, Vangst is now working with 1,200 cannabis businesses and has helped fill over 150,000 part-time gigs since launching its product in 2018.
That momentum, combined with new states coming online and mounting federal legislative pressure, has created an enormous opportunity for Vangst’s cannabis hiring platform.
To fuel its growth, Vangst raised a $19 million Series B financing earlier this month with an eye on expansion and product improvements.
The round was led by Level One Fund, with participation from previous investors including Lerer Hippeau, Colle Capital, Casa Verde Capital, Phyto Partners and new investors including L2 Ventures, Althea, Delta Emerald Ventures, Achari VC and others.
Vangst’s platform streamlines the hiring process for cannabis businesses across the U.S. by matching both full-time employees as well as vetted, credentialed, W-2, on-demand gig workers.
Founder and CEO Karson Humiston said the company has felt the headwinds of this competitive hiring environment.
“It's a very hot job market,” she said. “Cannabis businesses are hiring in one of the hottest recruiting environments of all time. Cannabis businesses report hiring as their number one pain point today, and Vangst is positioned perfectly to be their partner.”
With cannabis employment expected to grow over 100% by 2025, according to the 2021 MJBizFactbook, Vangst is using the capital to gear up its product, staff and new market expansion.
Humiston said the company is looking to build out its staffing platform, adding key features in training and payment products for cannabis employees. The 55-person company is also hiring to its own staff as it eyes new market opportunities across the country.
“The cannabis industry is experiencing huge regulatory tailwinds. New markets are opening at a fast rate due to strong public sentiment, pandemic-stretched state budgets, and mounting legislative pressure at the federal level,” Humiston said. “Cannabis businesses are high margin businesses with massive expected growth. Vangst is positioned perfectly to support their explosive hiring needs.”
This raise builds on a busy year for cannabis technology companies in Denver.
Cannabis retail software company Flowhub raised a $19 million round that included investors like Jay-Z last fall. At the time, the point-of-sale company worked with over 1,000 dispensaries in 14 states, processing more than $3 billion in cannabis sales annually.
Earlier in 2021, Denver cannabis workforce management startup Würk raised an oversubscribed $3.5 million Series AA round of financing. Wurk, which launched in 2015, provides small, mid-sized and enterprise cannabis businesses with services to help with recruiting, scheduling and paying employees.
