Berlin-Based Cannabis Co. Sanity Group Raises $44.2M Via Series A Round Led By Redalpine, Navy Capital And SOJE Capital

Berlin-headquartered cannabis company Sanity Group confirmed Tuesday it has completed a $44.2 million Series A financing round led by Swiss venture capital firm Redalpine, US-based Navy Capital and SOJE Capital. The round was also supported by GMPVC. 

According to Sanity Group, this represents the largest round of cannabis funding in Europe, pushing total investment in the company to $73 million. 

Sanity Group is involved in helping people via cannabinoids, covering both the pharmaceutical and cosmetic sectors of the industry. The company has some 90 employees in Europe, consisting of cannabis experts, physicians, biologists, and pharmacists.

Previously, it had garnered support from investors such as HV Capital, Atlantic Food Labs, Cherry Ventures, Calyx, TQ Ventures, Bitburger Ventures and SevenVentures. The company was also backed by high-profile celebrities like actress Alyssa Milano, Will.i.am, German soccer player Mario Goetze, model Stefanie Giesinger and Scooter Braun, record executive and investor.

What’s Next 

With the newly raised capital, Sanity Group intends to advance and broaden its medical division in Europe and build out its EU-GMP-compliant research and production facility in Frankfurt. 

It also intends to expand its consumer goods business. Currently, the company is known for brands such as Vayamed (pharmaceuticals), VAAY (CBD products), and This Place (functional cosmetics).

“A round of this magnitude shows that cannabis is increasingly moving into the mainstream of investor awareness, and represents an important milestone in our business expansion on our way to becoming Europe's leading cannabis company," Finn Age Hänsel, founder and managing director of Sanity Group said in a statement. "We are very pleased about the trust placed in us by new and existing investors. Our thanks go not only to our new partners but also to those who have been by our side for a long time and support us on our journey." 

Sean Stiefel, CEO at Navy Capital referred to the current state of the European cannabis market, which is expected to see significant developments in the upcoming months.

“Compared to the North American market, Europe is now where we were in the U.S. about four years ago. We want to bring our expertise and experience to the table. For our first investment in Europe, it was important for us to find a team that understands the market and has real industry experts in its ranks. The Sanity Group team particularly impressed us with their expertise and clear approach,” Stiefel said.