Cannabis Delivery Service Eaze Raises $10 Million to Expand

The Eaze app
Nick Kova

As it prepares to bring its medical-marijuana delivery service to Southern California cities, Eaze Solutions Inc. has raised a $10 million Series A round to hire 50 people in 50 days, the company said.

Eaze, which frequently is called the “Uber of pot,” makes a mobile application that delivery drivers for marijuana dispensaries use to log orders and schedule deliveries.

Last year, the company raised $1.5 million from 40 Silicon Valley-based angel and institutional investors.

Chief Executive Keith McCarty said the Series A was led by DCM Ventures, joined by Fresh VC, 500 Startups and other investors. David Chao of DCM has joined the San Francisco-based company’s board.

Since its launch last year, the company’s mobile technology has facilitated some 30,000 medical-marijuana deliveries, company materials said.

The company began by forming alliances with cannabis dispensaries in San Francisco, and has moved into of other San Francisco Bay Area cities, the CEO said.

As Eaze expands, the company must stick to jurisdictions where medical marijuana is legal. The company is planning a move into Southern California, including Los Angeles, San Diego and Orange County, Mr. McCarty said.

Eaze will then make its move on other states that have relaxed marijuana laws, including Colorado, he said.

Since Colorado and Washington first voted to legalize recreational marijuana use in late 2012, the legal cannabis market has grown from $1.5 billion in 2013 to $2.7 billion last year, according to industry estimates.

As it expands, Eaze is on an aggressive hiring spree, the CEO said. The company aims to hire 50 people, in the areas of engineering and business development, in the next 50 days.

Eaze is one of the venture-backed startups operating in the marijuana sector. Privateer Holdings, a which acts as a holding company for various marijuana-related businesses and finances the growing of cannabis in locations where it is legal, recently raised $75 million in Series B funding.

In January there also was an event in San Francisco that brought together investors and companies working in the marijuana industry to allow the startups to pitch “Shark Tank” style.

Write to Timothy Hay at timothy.hay@wsj.com. Follow him on Twitter at @timwhay