Cannabis retailers are just like any other business. The more data they have, the smarter their decisions become.
Seattle-based startup Headset has created a data analytics platform for cannabis companies. The Headset platform collects and analyzes consumer transaction information, which is then used to create insightful dashboards and data models — allowing cannabis businesses to optimize their operations and decision-making.
On Tuesday, Headset announced the completion of its $8.6 million financing round, which was led by Althea. This round includes $3 million in new funding, as well as $5.6 million in bridge notes issued in August 2020 and April 2021. The financing also follows the company’s $12.1 million fundraise in 2019.
Headset has grown significantly since its launch in 2015. The company now supports cannabis businesses across 20 different markets. This new funding will help fuel further market expansion, as well as enable new product development.
“With this latest round of capital, Headset is able to achieve significant milestones in the industry, including the expansion of our market measurement services to all legal markets and launch new and exciting services designed to help organizations understand and activate consumer purchase behaviors at unprecedented levels,” Headset CEO and co-founder Cy Scott said in a statement. “We are excited to be working with Althea who brings expertise in the areas of technology, analytics, CPG and cannabis.”
Cannabis can be a tricky industry to navigate since it is so highly regulated. Laws differ greatly from state to state and country to country. This can prove to be a challenge for cannabis companies, but it’s also what makes tools like Headset’s platform so valuable.
On top of that, more states are legalizing cannabis every year, creating new markets for cannabis companies to enter. This is why Headset has been focusing on expanding, because it believes its tools can help cannabis retailers looking to sell products in new markets.
“The Headset platform is unparalleled in its breadth, depth and real time analytics, providing it with an enduring competitive advantage and growing business moat,” Eliza Gairard, co-founder of lead investor Althea, said in a statement. “As the industry matures, the importance of data and analytics will grow exponentially, and we believe Headset is uniquely positioned to win.”
