Nabis wants to modernize the way products are moved in the cannabis supply chain. And so far, they’ve raised over $5.25 million from investors who think they’re the right company for the job. Nabis is what California classifies as a “Type 11” cannabis distributor. The company bills itself as a leading distributor of cannabis products servicing hundreds of licensed businesses in California. In less than two years, Nabis has built a distribution network covering the entire state. And they plan to use the capital they’ve raised to continue growing in California while also expanding to other states.
Nabis Boasts High-Profile Silicon Valley Investors
Last month, Nabis closed its second round of financing, raising roughly $4 million. This follows their seed round in summer 2018, in which the company garnered $1.25 million from a cohort of high-profile Silicon Valley investors. Those investors include the creator of Gmail, Paul Buchheit, the CEO of InVision, Clark Valberg, and the co-founder of DoorDash, Stanley Tang. Other key investors include Y Combinator, Liquid 2 Ventures, Soma Capital, Babel ventures and even professional soccer player and coach Keisuke Honda.
Added up, Nabis has raised $5.25 million since the company’s inception in 2017. And it plans to use the capital toward a number of strategic objectives. First, Nabis wants to scale up its California distribution operation, especially in southern California.
Toward that end, the company will build a completely renovated 10,000 square foot distribution hub in Los Angeles. Since legalization went into effect in January 2018, Nabis has shipped tens of millions of dollars worth of product in California. Their network serves over 90 percent of California retailers with a lineup of more than 40 brand partners, including Honey Vape, Jetty Extracts, THC Design and Canndescent.
Nabis Investor Profile Signals Tech Takeover of Cannabis
“Click button. Ship weed.” That’s how simple Nabis says it’s distribution service is. The company stores retailers’ wholesale products and ships them out within 36-48 hours. And it can do that, thanks to its innovative application of technology. Nabis manages its logistics using its own cannabis-compliant software system. The company plans to use a portion of its investment capital to further develop their software capabilities with the goal of becoming the most reliable service in the industry.
“Nabis’ latest round of funding will allow us to significantly scale up our infrastructure and software product to continue dominating the industry in California,” Nabis CEO Vince Ning said in a press release.
The company also wants its automated distribution software to make it easier for new brands to enter the California retail market and find new customers.
In March of this year, Tech Crunch named Nabis as its favorite start-up from Y-Combinator Demo Day. In an uncertain and shifting regulatory environment like California, Nabis was able to become one of California’s premier cannabis distribution companies in two years.