Cannabis Lender Bespoke Financial Raises $8M in Funding

Bespoke Financial Secures $8 Million in Series A Funding

Bespoke Financial, a company specializing in cannabis industry financing, has announced the successful completion of an $8 million Series A funding round. This investment brings new investors on board as the company continues its mission to provide financial solutions to businesses within the cannabis sector.

Providing Financing Solutions to the Cannabis Industry

Bespoke Financial operates as a direct lender, offering a range of financing options tailored for cannabis companies. These short-term loan products are designed to help businesses establish a credit history with Bespoke.

Subsequent loans and financial products are then offered with increasingly favorable terms. The company reports significant growth in loan origination volume, exceeding projections by 25% over the past year.

Impressive Growth and Performance

To date, Bespoke Financial has deployed $120 million in gross merchandise volume across more than 2,000 cannabis license holders. Notably, the company has maintained a perfect record with zero loan defaults.

Future Expansion Plans

The newly acquired capital will be utilized to introduce innovative financing structures and broaden the scope of financing options available through various distribution channels.

A Pivotal Moment for Bespoke Financial

George Mancheril, CEO and co-founder of Bespoke Financial, views this funding round as a critical milestone for the company. He also considers it a strong validation of Bespoke’s strategic direction and product offerings.

As reported to TechCrunch, this investment introduces several key partners to the rapidly expanding startup.

Key Investors in the Round

The financing round was jointly led by Casa Verde Capital, associated with Snoop Dogg, and Sweat Equity Ventures. Additional investors included Ceres Group Holdings, Greenhouse Capital Partners, Philip Barach (co-founder and former president of DoubleLine Capital), and Robert Stavis, a New York-based investor.

Sweat Equity Ventures’ First Cannabis Investment

This marks Sweat Equity Ventures’ (SEV) inaugural investment in a cannabis-related company. Backed by LinkedIn founder Reid Hoffman, SEV, led by Dan Portillo, employs a unique approach to venture funding.

Instead of solely providing capital, SEV collaborates with founders to supply top-tier engineering and business talent to portfolio companies, receiving equity in return for these services.

SEV’s Vision for the Cannabis Industry

Dan Portillo, managing partner of Sweat Equity Ventures, stated, “This is our firm’s first investment in the cannabis industry, and we are excited to partner with Bespoke as more and more states legalize cannabis use, and the Federal government contemplates nationwide legalization.”

He further explained that the partnership will combine Bespoke’s financial and cannabis expertise with SEV’s experience in scaling innovative tech companies, improving access to financing for cannabis businesses and enhancing transparency and risk management for investors.

Casa Verde Capital’s Continued Support

Karan Wadhera, managing partner at Casa Verde Capital, emphasized that Bespoke Financial effectively addresses critical needs within the evolving cannabis industry. Casa Verde Capital had previously invested in Bespoke Capital, including a $7 million round in 2019.

Bespoke Financial’s Long-Term Goals

George Mancheril shared with TechCrunch that Bespoke Financial aims to be more than just a lender. The company aspires to become a modern financing partner, actively collaborating with the cannabis industry.

Total Funding and Company Overview

With this $8 million investment, Bespoke Financial’s total funding to date reaches $28 million. Founded in 2019, the company currently employs 12 individuals.