Seedo’s Journey from Promise to Peril: The Rise and Fall of a Cannabis-Tech Startup

It can grow other things too but it's safe to say, most people are ...

Once the apple of the cannabis community’s eye, Seedo Corp (OTC: SEDO), an Israeli AgriTech startup, had initially captivated audiences with its vision for AI-driven cannabis cultivation. The company made headlines in 2013 by promising to revolutionize home cannabis growing with a sleek, mini-fridge-like grow box. Their association with Snoop Dogg as a brand ambassador only added to the allure. However, as time unfolded, the startup’s promising journey hit a dead-end due to mismanaged capital and ill-conceived efforts to cut production costs.

It can grow other things too but it’s safe to say, most people are using Seedo to grow weed.

A Bright Start

Founded in 2015, Seedo’s ambition was grand. The company’s founder, Yaakov Hai, a retired expert cannabis grower, developed an AI and Machine Learning-powered device to facilitate “high yields of lab-grade, pesticide-free herbs, and vegetables,” primarily cannabis. The gadget was like a “driverless car for hydroponic growing,” utilizing an algorithm to automate water, fertilizer, and temperature settings based on the plant’s requirements. A patent-pending lighting system even adjusted itself according to the growth stage of the plants.

In the U.S., where 11 states had legalized recreational cannabis use and 22 recognized medical cannabis treatments, Seedo found its largest market. Notably, in 2019, Seedo even declared plans to foray into commercial-scale agriculture with “Seedo Farm,” leveraging its technology to help communities produce food in high-risk areas and potentially even space.

Cracks in the Facade

Despite the initial hype and collaborations with high-profile names like Namaste Technologies for European expansion, the company had internal troubles. C-suite shake-ups and debt settlements put the enterprise under pressure. Seedo had assured its pre-sale consumers of delivering their products and even claimed “outstanding results” from initial home grows. But the reality was far less rosy.

Customers increasingly reported faulty devices, unfulfilled shipments, and issues like leaks, pump failure, and connectivity problems. These operational glitches were frequent topics of discussion on social media platforms and Seedo’s subreddit. Unfortunately, some users even claimed to have lost entire grows due to machine failures.

The Downfall

The turning point came with the revelation that Seedo had mismanaged its capital and attempted to cut corners in production, leading to the problematic devices. Despite aggregating over 280,000 hours of grow data and boasting an ambitious vision of expanding its technology for humanitarian causes, such as combatting the effects of climate change, the firm faced an existential crisis.

It was a far cry from what Brian, one of Seedo’s first pre-sale customers, had experienced. He once described the process as “magical,” where pushing a button on his smartphone led to a harvest 12 weeks later.

A Cautionary Tale

As of today, Seedo serves as a cautionary tale for startups aiming too high, too fast. What began as a dream to simplify home-based cannabis cultivation and expand into solving world agriculture problems ended up as a nightmare for both the company and its stakeholders. The community’s excitement has turned into skepticism, and the venture stands as a stark reminder of the challenges that lie in turning pioneering technology into a viable, long-term business.

1 Comments Text
  • mangaowl says:
    Your comment is awaiting moderation. This is a preview; your comment will be visible after it has been approved.
    After I initially left a comment I appear to have clicked on the -Notify me when new comments are added- checkbox and from now on each time a comment is added I get 4 emails with the same comment. There has to be an easy method you are able to remove me from that service? Kudos!
  • Leave a Reply

    × How can we help you?