The cannabis sector is growing at a rapid pace. However, regulations at the federal, state and local levels often differ on their views of the recreational and medicinal purposes of cannabis.
As a result, businesses can face suffering grave consequences if their marketing practices are not in line.
“In some states, the proposed legal age for recreational marijuana use is 18,” Built In Chicago explained. “In others, it’s 21. Losing track could create big problems for small to mid-tier retailers.
“If regulators decide their advertisements target that 18-to 20-year-old crowd in the wrong state, they could be fined tens of thousands — or forced to close.”
With its trademark Cannabrain technology, Fyllo uses artificial intelligence to keep track of regulations in the cannabis industry in real-time. The platform also incorporates “billions” of data points to help companies follow trends, improve their marketing efforts and safely expand their brands.
“We’re confident that our intellectual property, technology stack, and go-to-market strategy will result in exceptional value for cannabis brands and mainstream publishers alike,” Fyllo co-founder and CEO Chad Bronstein said in a statement.
Based in Chicago, the MarTech startup also has offices in Los Angeles, Denver, New York, Toronto and Tel Aviv, with plans to expand to Las Vegas, Phoenix and Cleveland.
Fyllo launched with $16 million in seed funding, the highest ever for a startup in the American Midwest. The funding round was led by JW Asset Management, an early-stage firm behind several top companies in the cannabis sector, and Canadian K2 & Associates, with participation by other investors.
“We feel really grateful to have some of the largest cannabis funds behind us,” the startup’s CEO told Built In Chicago. “We feel that we have raised enough capital to really get us to the next iteration of our business, which is growth in terms of people and building out our technology.”
The funds will be used to expand the company’s technology platforms and build a larger team.
“We are excited to partner with Fyllo as they address a major unmet need for the cannabis industry,” said JW Asset Management managing director Jason Klarreich, who will also serve on the company’s board of directors. “Chad has built a great team with the experience and talent to deliver superior marketing solutions to companies across the cannabis industry.”
Nichole Onome Yembra