Rainbow, a French cannabis tech startup, has raised €2 Million that will allow it to expand its operations in the European continent.
The funding round included the participation of new and existing investors such as Sensei Ventures (VC fund) and Artemis Growth, which believe they can boost the startup’s mission to expand to Italy, Germany, and Poland in the near future.
The startup aims to become the leading hemp-based brand portfolio in Europe by “delivering quality products with the potential to have a real impact on consumers day-to-day”. At this time, the company already has offices and operations in London and Berlin, the result of its more than 15k customers,
Rainbow has experienced exponential growth as the cannabis industry continues to expand amid looser regulations and higher demand. This surge in popularity has resulted in the startup predicting to reach 5 million sales by the end of 2021, as well as being listed at major retailers across the UK and France.
So far, the company has launched two CBD-based brands targeted different audiences: “Kaya” and “Peace and Skin”. The first one is a brand of food products that mainly consists of food supplements, while the latter is a brand of cosmetics.
The company is aiming to use the funds to launch new brands, increase its workforce, and prepare for the upcoming french regulatory language to facilitate production.
Rainbow’s Cofounder Ludovic Rachou, who is also a founding member of the Association for the Cannabinoid Industry, expressed his trust in the new funding’s ability to get the startup closer to its goal by stating:
“The CBD category has been growing hugely over previous years, and we aspire to be the go-to CBD brand for consumers across Europe – providing a truly great product that shoppers can trust. Our brands were born from the needs of myself and my co-founders, who are all living busy, stressful lives like millions of others, and we hope that they can be an ally to many more!”
All of the cannabis tech startup brands are vegan-friendly and meet regulations in the countries where they are sold, allowing them to reach a wider audience at a time when responsible cannabis consumption is on the rise.