By Lynda Kiernan
Vertosa, an innovative, California-based cannabis and hemp technology company, announced it has raised $6 million in Seed funding co-led by AFI Capital Partners and Welcan Capital.
To bridge the gap between the cannabis and mainstream consumer arenas, Vertosa made it a point to engage with key investors from the food and beverage spheres, including the alcohol and consumer goods categories. Additional investors in the round include cannabis and alcohol investor Goat Rodeo Capital; cannabis, hospitality, and media investor Big Rock Partners; consumer businesses investor Finn Capital Partners; and JamJar Investments.
Together, AFI and Welcan have invested in more than 25 cannabis companies across the U.S. AFI’s Managing Director Chi-Chien Hou has extensive experience in consumer packaged goods, and has been named to the Vertosa board as part of this deal, while managing director Nico Richardson is the former director of investment and corporate development with Privateer Holdings. Richardson also is a board member of Headset, a provider of data and analytics to the cannabis industry.
“We purposefully designed this fundraising round to be collaborative and diverse,” said Ben Larson, CEO, Vertosa. “As a relatively young B2B business, we’re thrilled to have garnered a strong network of investors who recognize Vertosa’s early achievements, are confident in our growth potential, and actively support our vision and values. We’re proud to have the support of investors from all related categories in which we serve in a multitude of geographic markets.”
Founded in August 2018 under its original name Nanogen Labs, the rebranded Vertosa engineers patent-pending nano and micro-emulsions designed specifically for each of its customers. The team led by CSO and Founder Dr. Harold Han works closely with its lab partners and its customers to create pre-suspended, homogeneous, and stable cannabis-infused solutions that offer maximum bioavailability, clarity, texture, and taste for each specific product application.
“Our success in this Series Seed funding round is a testament to the incredible work our team has done over the past year to serve both the licensed cannabis and hemp markets while developing our industry-leading technology,” said Larson. “We set ourselves apart from the competition through a relentless dedication to building and maintaining strong relationships with our partners, and a science-first approach to implementing technology and product development. This new capital empowers us to make our services even better.”
This funding follows on the heels of a rebranding for the company that better reflects its best-in-class products, service, and scientific expertise, according to a recent statement. The company has also rapidly carved out a reputation as a respected cannabis and hemp infusion partner for both mainstream and niche names the food and beverage industries, including House of Saka wine, Tinley Beverage Co, GoodDay Beverages, VitaCoco, and Humphrey Slocombe ice cream.
This growth has been accompanied by internal expansion with a number of new hires reflecting the top talent from the tech, food and beverage, cosmetics, health, and cannabis fields. Now, Vertosa will use the capital secured through this round to continue to strategically scale, to reinforce the company’s place in the infused products supply chain, and to assist their partner brands to achieve their own national and international growth.
– Lynda Kiernan is Editor with GAI Media and daily contributor to the GAI News and Agtech Intel platforms. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.