As legalization spurs cannabis companies across the country to sprout up, the need for cannabis focused human resources and payroll services increases.
Denver-startup Würk is capitalizing on that, announcing $11M in funding to facilitate further expansion of its platform.
The funding round was led by returning investors Poseidon Asset Management and Arcadian Fund. Existing investors Altitude, Salveo Capital, Phyto Partners and The Arcview Group also participated in the round.
Würk, which launched in 2015, provides cannabis businesses with services to streamline recruiting, scheduling and paying employees.
With the funding, Würk plans to expand its management platform, adding dedicated human resource, payroll and tax experts to its offered services.
"Our technology ecosystem allows cannabis companies to recruit, retain and optimize the efficiency of their rapidly growing workforces," said Keegan Peterson, founder and CEO of Würk. "Multiple new states came online in 2018, and with a number of markets planning to implement a regulated cannabis program this year, the industry needs these critical business applications in place to support it at scale."
As more states legalize cannabis every year, more people are entering the space every year. But, Peterson said larger providers haven't yet caught up.
"We're looking to offer the benefits and all the services that traditional companies have the luxury of having, but cannabis companies don’t yet have," he said.
In addition, the company will implement an analytics engine, allowing employers to increase operating efficiencies by benchmarking themselves against industry best practices.
In April of last year, Würk raised a $3.2 million bridge funding round led by Poseidon Asset Management. To date, Würk has raised over $18 million, according to venture database Crunchbase.
"After participating in Würk's previous two funding rounds, we are thrilled to have the opportunity to invest in the company yet again," said Emily Paxhia, Managing Partner at Poseidon Asset Management. "As investors focused on the cannabis space, we regularly see the HR, accounting, and tax challenges that startups in the industry face on a frequent basis. Würk's solution helps ease that massive compliance burden and creates a huge investment opportunity in doing so."
Würk currently has 42 employees and Peterson said they'll look to hire an additional 20 to build out the product. The company moved into a new Denver office space in August 2018, and Peterson said the space can accommodate up to 100 employees.
"We’re working on increasing the size of the team," he said of 2019 goals.
Würk was recently named one of the 19 Colorado Inno Startups to Watch in 2019.
