Tech startup LeafLink’s new online marketplace makes buying and selling legal weed a breeze. Specializing in the B2B wholesale space, LeafLink is building an online purchasing manager aimed at simplifying the purchasing process for cannabis retailers.
This Tech Startup Wants to Transform How Cannabis Retailers Do Business
Reports describe LeafLink as the “SalesForce for cannabis.” And CEO Ryan Smith thinks that’s accurate.
LeafLink is a business-to-business marketplace for cannabis. It utilizes CRM and other software tools within its online platform “to connect buyers and sellers of legal marijuana,” Smith told TheStreet.
“If you’re a purchasing manager at a retail dispensary location and you buy from 50 brands every week, you can buy all those items on LeafLink in one centralized cart from other licensed companies in the space,” Smith explained.
While LeafLink is working on acquiring a larger market share in the B2B space, its revenue streams aren’t a priority. However, the company has tapped into some revenue via fees.
LeafLink is a SAAS-enabled market. It sells software as a service (SAAS) for a monthly fee. Specifically, the monthly fee grants sales site companies access to the platform. Additionally, the company has revenue lines around advertising and other related products.
CEO Ryan Smith wants to keep LeafLink an ancillary tech company, rather than a broker in the space. So the company doesn’t charge transaction fees. Indeed, this is one reason the company is not yet profitable.
Investments In Cannabis Tech Startups Grow As Legalization Expands
Despite being in the red, LeafLink has garnered $14 million in venture capital funding. The company is using that money to gather as much of the B2B market as it can.
Currently, LeafLink is online in seven states and hopes to hit 15 by the end of 2018. As legalization expands, Smith hopes his company can ride the momentum.
As LeafLink’s clients move into these new spaces, the company plans to move with them. “There’s never a dull moment,” Smith said. “Each state is like stepping into a new space.”
New Online Marketplace Makes Buying And Selling Legal Weed A Breeze
Asked what’s next for LeafLink, Smith told TheStreet that the company isn’t looking for any outs or acquisitions. It’s just looking to make good on its VC investments to gather new market shares.
Going public may also be a goal the company sets its sights on for the future. With legalization coming into effect in Canada this summer, for example, many cannabis companies in Canada are already taking advantage of opportunities to go public.