LeafLink Raises $40M to Expand Cannabis Wholesale Marketplace

LeafLink has announced the successful completion of a $40 million Series C funding round. This investment was spearheaded by Founders Fund, with additional participation from Thrive Capital, Nosara Capital, and Lerer Hippeau, bringing the company’s total funding to over $90 million.

This funding round represents Founders Fund’s most substantial technology investment within the cannabis sector.

Established in 2015, LeafLink has rapidly become a leading force in the legal cannabis industry. Currently employing 130 individuals and operating across 27 different markets, the company reports holding 32% of the U.S. wholesale cannabis market, which translates to an annual gross merchandise value exceeding $3 billion. LeafLink intends to utilize this Series C funding to facilitate business growth through the development of new processes and services.

“This funding milestone is incredibly significant for a technology company like LeafLink as we continue to shape an industry that demonstrates consistent expansion,” stated Ryan G. Smith, co-founder and CEO of LeafLink, in an official announcement. “We are pleased to collaborate with Founders Fund as we broaden the reach of our marketplace technology throughout the evolving cannabis industry. Our focus remains on delivering efficiency and innovation to the supply chain, and we anticipate cannabis serving as a blueprint for modernization in other established industries.”

LeafLink currently provides a vital service to the cannabis market by linking retailers with suppliers and enabling supply chain liquidity through its e-commerce platform. The additional $40 million in funding will allow the company to broaden its offerings with new brands and retailers, as well as expand into emerging markets created by the 2020 election results.

“The United States is trending towards complete federal legalization of cannabis in the coming years,” explained Napoleon Ta, a partner at Founders Fund. “We anticipate significant successes within the cannabis industry as regulations evolve, and we believe LeafLink is well-positioned to be a leading beneficiary.”

In a statement provided to TechCrunch, Ta elaborated that LeafLink functions as a technology-driven wholesale marketplace, connecting a vast network of wholesalers and retail purchasers. He views this investment as a valuable opportunity to collaborate with a company that Founders Fund believes has the capacity to consolidate an entire industry onto a single platform.

“Our decision to invest in LeafLink stems from the team’s ability to integrate proven e-commerce marketplace strategies with B2B technology, thereby optimizing the supply chain and operations for an entire industry,” said Ta. “We are excited to make our largest investment to date in the cannabis space with LeafLink.”