Our First Investments of 2018 — Green Tank & Vangst
Like many folks out there, I had a few new year’s resolutions for 2018 of which three were particularly important. One, was to adopt a vegan diet, which somehow I have successfully adhered to so far. The second was to exercise more, which I can categorize into the ‘work-in-progress’ bucket. And the third was to start to writing my thoughts on the cannabis industry and our investments here at Casa Verde.
I know it’s mid-April, but better late than never. So in that spirit, I’m kicking off Goal #3 with a little bit of backstory behind Casa Verde’s first two investments of the year. We closed up our fund at the end of 2017 and are in full deployment mode, so it’s an ideal time to tell you about Green Tank Technologies and Vangst.
Back in October, when we were located in the same office as LBS (Leafs by Snoop), the cannabis brand of our partner Snoop Dogg, we noticed a sleek and stylish vaporizer lying on the desk of Tiffany Chin.
Tiffany is the co-founder and brand manager at LBS, and within minutes, she was introducing us to the founders of Green Tank Technologies, the Canadian start-up that made the device.
Green Tank fills a unique space in the cannabis industry by manufacturing hardware of the highest quality that is purpose-built for highly viscous oils. Cannabis oil, for which its devices are specially designed, is also the fastest-growing segment of the US cannabis market: according to Eaze, oil-based products for vaporizers are growing at a compounded annual rate of 400 per cent.
After a number of conversations on the phone, we connected in person with the founders, Dustin and Corey Koffler, at MJBizCon in Las Vegas and then dove deep into diligence shortly thereafter. Last month, we announced that we had taken a stake in the company and would be joining the board of directors.
The way we came across Green Tank is a great example of the ecosystem we are able to leverage from partner companies like LBS. Not only does LBS serve as a great lead generator for opportunities, but someone like Tiffany provides a unique insight into our deals from a brand perspective. Our other partners and portfolio companies add to this growing ecosystem and we are really excited to bring Green Tank into the fold.
Our introduction to Vangst also came from within our network; this time from one of our portfolio companies that was also a Vangst client.
Vangst is the go-to recruiting platform for the cannabis industry. The industry already employs more than 165,000 people in the US, and estimates suggest that figure will rise to quarter of a million over the next two years. That’s almost five times more than the US coal industry employs today.
Since it launched in 2015, Vangst has placed more than 5,000 professionals in promising careers in the cannabis industry. Revenue has grown more than 500 per cent in the last year alone and the company expects sales to follow a similar growth trajectory this year. This was a business that had been bootstrapped from the beginning and was always profitable and cash-flow positive.
The entrepreneur behind Vangst is Karson Humiston, an impressive young woman who saw an opportunity and dove in head first. We are always on the look-out for inspiring founders and when we met Karson we immediately knew she was special
Over coffee in January, we discussed many things, including the prospects for her business in the coming years. Karson had a clear plan of attack, a strong vision for growth, but was also very receptive to feedback and suggestions.
I was also very impressed with Karson’s history as an entrepreneur. Even though she is only 25 years old, this is not her first rodeo. While in college, Karson built an impressive travel firm that targeted the coveted college demographic — a business she sold upon graduation before eventually starting Vangst.
Some people just have this entrepreneur thing in their blood — Karson is clearly one of those special folks. We are thrilled to have her and the Vangst team in the Casa Verde portfolio.
