On-demand cannabis delivery startup Eaze completed a $27 million raise, probably on investor excitement about California’s impending legalization. But it is spending heavily on marketing and apparently burnt through $24 million mostly on ad and marketing spend. That’s risky approach if consumers first turn to dispensaries to learn about cannabis, before they feel comfortable buying online.
Eaze has gone hard on marketing spend, using aggressive growth tactics and burning through the $24.5 million it had previously raised in VC cash. New CEO of the company Jim Patterson, who took over the role in December 2017 explains his approach as just part of the Silicon Valley cycle to get ahead, “We are a tech startup…we’re investing in growth,” he told TechCrunch when asked about the high burn rate. “We’re investing the money now in what’s clearly going to be a very big market.” Part of the pop i