September 29, 2022

By Lynda Kiernan, Global AgInvesting Media

German cannabis company Sanity Group announced it has raised $37.6 million in Series B funding representing the largest investment round in the EU sector to-date. 

Led by British American Tobacco (BAT), the round was also joined by existing Sanity Group investors including Redalpine and Snoop Dogg’s Casa Verde Capital, bringing total cumulative funding for the company to more than $100 million.

“This financing round is not only the largest funding round achieved by a European cannabis company to date, but also one of the few upsizing rounds in this current economic phase of the German startup scene,” said Max Marr chief investment officer, Sanity Group.

“Against the backdrop of a challenging global economy, we are proud to have achieved a funding round of this magnitude, facilitating the pursuit and progress of our mission to become a significant cannabis brand in Germany and Europe.”

Additional high-profile existing investors in the company include Will.I.Am (Black Eyed Peas), Hollywood actress Alyssa Milano, manager Scooter Braun, Swiss VC Redalpine, HV Capital, Calyx, TQ Ventures, Atlantic Food Labs, Cherry Ventures, Bitburger Ventures, SevenVentures, GMPVC, Navy Capital, and SOJE Capital.

“Investing in Sanity Group is another example of BAT’s ongoing work to explore numerous areas beyond nicotine, positioning BAT for future portfolio growth across a range of categories and geographies,” said Kingsley Wheaton, chief growth officer, BAT. “We continue to transform our business, through better understanding of our current and future consumers, as part of our A Better Tomorrow purpose.”

Founded in Berlin in 2018 by Finn Age Hänsel and Fabian Friede, Sanity Group works to improve quality of life through cannabinoids and the endocannabinoid system with a focus on pharmaceuticals, consumer goods, and medical products.

With this capital, Sanity Group stated that it plans to use it to fuel its European expansion, and to strengthen its R&D activities.

“This funding is an important milestone for us and a strong signal towards the future of cannabis in Germany and Europe,” said Finn Age Hänsel, founder and CEO of Sanity Group.

“I am grateful for the belief shown by both new and existing investors. Our goal is to leverage the full potential of the cannabis plant and to explore and harness the different cannabinoids,” continued Hänsel. “With the new capital, we will be able to accelerate our medical and consumer business units whilst preparing accordingly for cannabis legalization in Germany.”

Karan Wadhera, managing partner, Casa Verde Capital, added, “Sanity Group is already the most well capitalized cannabis business in Germany and is on track to become one of the leading brands in Europe. We are thrilled with their continued progress and will keep offering financial and operational support as they scale.”

“Our mission is to help aspiring companies become tomorrow’s market leaders,” concluded Michael Sidler, partner, Redalpine, the lead investor in Sanity Group’s Series A financing last year. “We have felt this passion from the Sanity Group team since our involvement in the summer of 2021, and we look forward to accompanying their further development in the future.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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