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Lucid Green raises $10M Series A to bring smart UPC codes to cannabis –

Cannabis companies are experiencing headaches. Yet these companies are building businesses in a complex market that has been plagued by a number of challenges, from banning banks to changing regulations. One such start Green Lucidis a solution to the growing branding problem, and has raised $ 10 million in Series A led by Gron Ventures and Gotham Green Partners.

The smart UPC of the company wants to reduce costs and increase efficiency in all segments of the supply chain, from farmers to brands to retailers and customers.

The Lucid Green system, appropriately called LucidID, uses a single digit number from seed to customer. Farmers and labels can use this barcode to submit and receive test results and proof of compliance. In addition, retailers can use it to manage real-time inventory and build loyalty programs for shoppers. Because this happens with one brand, Lucid Green says this system eliminates the tedious process of putting new labels on product packaging.

“Sometimes I feel like Henry Ford driving the first Model T cars, where everyone is used to horses and saddles,” Larry Levy, general manager and founder of Lucid Green, told me. Speaking about the obstacles to bringing the product to market, he said it was customary for everyone to transport the goods on horseback, and when the truck arrived, there was a need for infrastructure. He feels the same thing is happening now with cannabis.

Legal cannabis is highly regulated and requires a lot of checks on the way to the consumer. Retail or distribution is often overshadowed by the extra work involved in identifying specific brands for different products such as changing regulations, increasing labor costs and reducing revenue. Lucid Green claims its data suggests that the LucidID system can store up to $ 10,000 per month.

Other companies offer similar solutions around QR codes but lack the full benefits of LucidID. For example, some brands use QR code to provide customers with more information. Others use QR code to track items. Lucid Green has the closest competitor coming from pharmaceutical companies, although they often stop customers from accessing information available at pharmacies.

The project started from the customer side. “The idea was to put it all together [testing and strain information] in a QR code that leads to rich information to allow people to have a better experience, ”Levy said. “Around 18 months ago in the California market, legislators continued to introduce more rules… and began asking the brand to wear a particular code.” These rules have important legal consequences and often require staff to label any product.

“This was a big driver for us, to say, ‘Hey, we’re already putting in the package code, so why, the supply chain, you haven’t used it, either.’

Wilder Ramsey from Gron Ventures led the Round of Series A. He told TechCrunch that talking to retailers led him to invest in Lucid Green. He said they desperately need this solution, with one of LA’s biggest centers launching and accepting only new products if it plays the LucidID brand.

“And that was a real awakening that this issue has reached a critical juncture,” Ramsey said. “There are a lot of SKUs. You have a pressure part and a part of the structure. You have a volume unit and vape cartons which are available in half gram or full sizes. Then the customer thinks, ‘Well. , should I buy Sativa or Indica? ‘ This is not like a retailer storing six packets or 12-packs of Coke. And not like Diet Coke or regular Coke. Similarly, we have received 5,000 items. “

“I don’t know, maybe Larry has mental lines or something,” Ramsey said, laughing after listing Larry’s checks. “He is the founder of a series, and we have seen the benefits of that time and time again. He has been in this predicament for a long time, if not more, than anyone else. And he has an ear for brand and retail.” Ramsey said this is important when creating a two-way marketplace like what Lucid Green is creating.

“Larry captivated the core nature of the cannabis industry, allowing founders to do things that could not be done in other industries.” For example, Ramsey pointed to the ghost industry, saying you can’t build adult marketing branding. “When we hear the founders think so, these are the founders we are attracted to… The right founder Gron is someone who wants to take advantage of the stupid opportunity of the position to make a big impact.”

According to Lucid Green, the company’s app has more than 75,000 registered users. Between 2020 and 2021, LucidIDs made their way to 16 million products, with March 2021 seeing the creation of 1 million additional products carrying LucidID. Based on current changes and signed agreements, the company expects to add 85 million units to its brand this year.