Data Intelligence For Pot Firm Raises $2.5M

Data Intelligence For Pot Firm Raises $2.5M

Seattle Startup Headset Is Neilsen For The Pot Industry

As the marijuana industry starts to grow, there is an ever growing need for analytics. Couple that with the fact that there are a tremendous amount of laws surrounding the sale of cannabis products, and they vary state to state. Also because cannabis sales are governed by state law and not federal law, it’s a cash business.

All these factors make data intelligence a specialized challenge. Headset, a Seattle based startup, is the first on the scene providing much needed retail intelligence to the marijuana industry. Geekwire reports that the company just raised $2.5M from Hypur Ventures, Salveo Capital, and Poseidon Asset Management.

The company provides a wide range of retail intelligence including sell through data, promotion effectiveness, top performing products and more, all in real time. They supply data to retailers, dispensaries, brands, investors, media companies and more. Right now their customers are in Washington State, Oregon, California and Colorado. As more and more states legalize recreational marijuana use, the opportunity for Headset continues to increase.

Their website reads:

“Headset’s Market Insights offers producers and processors a crucial leg up in the hyper-competitive cannabis production space. Market Insights uses Headset’s proprietary data set to give you a detailed picture of the market when you need it — sales trends, emerging sectors, hot products, and more. Use Market Insights to identify new areas of opportunity, keep tabs on the competition, and tailor your product development to reflect actual, real-time consumer data. Predicting consumer preferences is hard, but with Market Insights, you can rest assured that the guesses you’re making are educated ones.”

The founders of Headset, Brian Wansolich, Cy Scott and Scott Vickers are no strangers to the cannabis industry. Prior to founding Headset they had started Leafly a marijuana strain and dispensary database startup. Leafly was acquired in 2011 by marijuana investment firm Privateer.

In August 2015 they started Headset as they saw the opportunity in the retail space increase.“We’re staying in the cannabis industry but are tackling a different problem,” Cy Scott, the CEO of Headset, told Geekwire.

Just how big is the opportunity? Recent data from Arcview Market Research found that the sales from the legal marijuana industry topped $6.7 billion when you factor in the illegal market as well, that number swells to $53 billion.