Cannabis firms face enormous challenges. But these enterprises are struggling in a market rife with obstacles, from banking restrictions to ever-changing rules. Lucid Green, for example, has raised a $10 million Series B headed by Gron Ventures with participation from Gotham Green Partners.
By reducing costs and increasing transparency throughout the supply chain, from producers to brands, retailers and consumers.
From seed to customer, Lucid Green’s LucidID system uses one barcode. This barcode allows growers and brands to upload and access test results and certificates. Retailers can also use it to monitor inventories in real-time and establish customer loyalty programmes. Because just one label is needed, Lucid Green claims this approach eliminates the need to reapply labels to product packaging.
According to Larry Levy, CEO and co-founder of Lucid Green, he sometimes feels like Henry Ford with the original Model T automobiles. He’s talking about the difficulty of bringing this product to market, adding that before the car, products were transported by horse, and the infrastructure needed to support it. He thinks it’s happening in cannabis right now.
To get to the customer, legal cannabis is heavily controlled. As regulations change, retailers and dispensaries are typically burdened with extra work, increasing labour costs and diminishing revenue. It claims its LucidID system may save stores $10,000 per month.
Other firms offer QR code solutions, but none offer the entire benefits of LucidID. Some brands, for example, employ QR codes to inform consumers. Some utilise QR codes to track inventory. However, most pharmaceutical companies do not let customers access the information provided to pharmacists, according to Lucid Green.
The initiative began with the consumer. For a better experience, Levy proposed putting all testing and strain information in a QR code that leads to rich information. “About 18 months ago, regulators in California were adding regulations…and pushing brands to put on unique codes.” To comply with regulations, workers must label each product with these codes.
“We said, ‘Hey, we’re already putting this code on the pack, why don’t you, the supply chain, use it too?’”
Series A was led by Gron Ventures’ Wilder Ramsey. Talking to shops prompted him to invest in Lucid Green, he said. One of LA’s largest dispensaries has thrown in and only accepts new goods with a LucidID label.
