Cannabis has been around for thousands of years, yet the modern supply chain infrastructure for it is severely lacking, so WAYV bridges that gap by introducing the first-ever supply chain logistics platform and integrated marketplace for cannabis. This platform connects licensed brands to licensed retailers and has various management functions such as detailed order tracking and next day shipping for managing the growing demand for both retailers and brands. Offering a centralized, compliant solution, WAYV is poised to capitalize on an industry expected to grow to $20B in the next few years.
LA TechWatch sat down with Keith McCarty to discuss the latest funding for WAYV and the development of the California cannabis market.
Who were your investors and how much did you raise?
We raised a seed round of $5M, led by Craft Ventures with 2 other funders who wish to remain private.
Tell us about the product or service WAYV offers.
WAYV is a B2B marketplace that connects licensed brands to licensed retailers. The seamless integration of technology and logistics for every one of those orders guarantees that store shelves are stocked with a consistent supply of compliant products. Our platform brings safe and licensed products to market faster, and it brings unprecedented visibility and service to retailers with order building, next day shipping, and detailed order tracking.
What inspired you to start WAYV?
WAYV is an example of how an emerging industry that is already huge lacked a technology solution.
Cannabis retailers and brands were connecting in a very old-fashioned way. This was cumbersome and driving prices up; the last thing the industry needs when so much about supporting the legal operation of this industry is cost-sensitive. Technology not only helps bring costs down by streamlining connection between stores and suppliers, it satisfies regulatory concerns because our logistics platform incorporates transparency and compliance that no other method of fulfillment has. I wanted to continue to solve for the problems I already saw in cannabis – just moving upstream.
How is WAYV different?
No other technology in cannabis connects end-to-end logistics with the orders on the marketplace. Built-in compliance features add a layer of trust and integrity for suppliers and retailers and really everyone along the way. Also – this is the hard part – creating carts and order forms is easy – the logistics in a state as large and complex as California is – that’s the hard part.
What market is WAYV targeting and how big is it?
Our market includes cannabis brands (suppliers) and retailers. The CA market should hit $3-6M in 2018; the national market is estimated to be north of $20B after 2020. Larger if cannabis is federally legalized.
Our market includes cannabis brands (suppliers) and retailers. The CA market should hit $3-6M in 2018; the national market is estimated to be north of $20B after 2020. Larger if cannabis is federally legalized.
What’s your business model?
We have built a B2B technology and logistics platform for brands and retailers to order and track inbound deliveries in real time. Our platform is free for retailers that are verified licensees. Brands pay for the technology logistics and distribution fulfillment, valuable services for them. The business model is similar to Amazons FBA (Fulfillment by Amazon), but our model solves a larger issue because of the inability to drop ship cannabis – this all has to be driven by a licensed distributor and tracked down to the smallest portion of an ounce. We integrate into all of these compliance checks that only technology can solve and make manageable at scale.
What was the funding process like?
We have been through other start-up funding and thankfully this seed round came quickly on the heels of our very successful launch.
What factors about your business led your investors to write the check?
WAYV has amazing traction in just a few months since launch. WAYV has facilitated thousands of deliveries to the majority of all licensed California Retailers. This rapid adoption gave confidence to our funders and they knew me and my team with our proven ability to navigate start-ups, growth, regulation and the markets.
What advice can you offer companies in Los Angeles that do not have a fresh injection of capital in the bank?
Have a clear vision but be flexible in how that vision may manifest. Be persistent. Build a great team. There is value in knowing and following the rules and shaping them, especially in highly regulated industries.
How has your prior experience in selling emerging technologies helped to shape this enterprise?
I would say that I have learned four keystone principles. Build a great team. Disruptive technology must work with government. Deliver a great user interface. Always align with an ethos to do good and success will follow
I would say that I have learned four keystone principles. Build a great team. Disruptive technology must work with government. Deliver a great user interface. Always align with an ethos to do good and success will follow
What are the milestones you plan to achieve in the next six months?
We are heads down building this platform and growing. California is the market to conquer, so that’s where our plans will focus for this moment.
What is your favorite LA bar, when you need to kick back and relax?
My favorite LA bar is TBD – the first one to convert into a cannabis lounge. I’m excited to see the evolution of cannabis lounges, hopefully sooner than later, because I anticipate the patrons being relaxed, happy and friendly.
