German simply hit a brand new milestone within the area the place enterprise capital and the burgeoning Cannabis business meet.
Berlin startup Demecan has accomplished a Series A financing spherical of seven million euros to develop its manufacturing facility for medical hashish and the wholesale commerce in Germany. It’s develop into the one German firm allowed to supply medical hashish in Germany.
This is a watershed for the nation and is the primary funding on this sector for the personal investor community linked to btov Partners (a VC). The different half of the funding got here from a single, named German household workplace, which is known to have its roots within the client items sector. Only two different firms, two of them from Canada, had been awarded the contract to supply medical hashish in Germany in May 2019.
btov Partners manages property of €420 million and has beforehand invested in tech startups corresponding to Blacklane, Data Artisans, DeepL, Facebook, Foodspring, ORCAM, Raisin, SumUp, Volocopter and XING.
The inexperienced mild from Germany’s Federal Institute for Drugs and Medical Devices (BfArM), means Demecan will be capable to produce a minimum of 2,400 kilograms of dried hashish flowers over the subsequent 4 years. Demecan can be lively as an importer and wholesaler of medical hashish and might thus cowl all the worth chain. Since the German authorities allowed hashish to be prescribed for therapeutic functions in 2017 demand has outstripped provide.
Jennifer Phan of btov Partners stated in an announcement: “Demecan operates in a very attractive market at the right time. Germany currently represents the third-largest market for medical cannabis in the world and is on a growth path. We believe that the company has a first-mover advantage in a highly regulated market environment, especially as it is the only German manufacturing and trading company in the European market”.
Dr. Constantin von der Groeben, co-founder of Demecan, added: “In recent years, we have intensively dealt with the market and reached an important milestone by winning the tender process. We are now focusing on further growth and the start of production in 2020.”
