'What This Industry Needs' Says Snoop Dogg's Casa Verde, As Prelude Secures $5.2M For AI Cannabis Supply Chain

In a notable advancement for the cannabis industry, innovative startup Prelude has successfully closed its $5.2 million seed funding round. This investment, a joint effort from venture capitalists with deep roots in both artificial intelligence (AI) and the cannabis sectors, is allocated for developing the first AI-driven supply chain solution specifically for the cannabis ecosystem.

Prelude aims to drive action, not just data. Its current focus is on improving the retail layer, helping dispensaries optimize inventory assortments and manage costs. The long-term vision encompasses extending this value across the entire supply chain, from seed to sale.

See Also: The Rise Of Bots In Cannabis: Predictive AI And Its Role In Customizing Consumer Experience

Pioneering AI Solutions For Cannabis Industry Growth: Meet Prelude Investors

Rackhouse Ventures, a pioneer in AI and machine learning (ML) investments spearheaded the funding round with Snoop Dogg’s venture capital firm Casa Verde Capital, recognized for its focus on cannabis technology.

Prelude's co-founders, Michael E. Murphy and Andrew Copp combine extensive experience in retail and technology, forming a team dedicated to enhancing the cannabis industry with a data-driven platform aimed at fostering growth amidst regulatory financial constraints.

Murphy highlighted the initiative's importance. "The data available within the cannabis industry is robust, but the tools to truly operationalize this data in order to streamline operations, maximize profitability, and improve cash flow have been lacking…until now," He noted the significant ongoing expense of inventory purchases for retailers, positioning Prelude to tackle this issue by enabling informed decision-making.

Copp likened their approach to the transformative impact of 'Moneyball' in baseball. "What Billy Beane did for baseball with Moneyball, we plan to do for cannabis with a new way to manage purchasing and inventory health. The math behind the magic is complicated, but the outcomes are straightforward."

See Also: Snoop Dogg's VC Fund Casa Verde Backs Cannabis Insurance Tech Co.: 'Exciting Opportunity To Disrupt Antiquated Industry'

The cannabis industry's supply chain, characterized by its relative newness, extreme complexity and high fragmentation presents a unique opportunity for Prelude. Kevin Novak, founder of Rackhouse Venture Capital, expressed enthusiasm for the venture. "We found that with Prelude. We are excited to be empowering the best teams to help solve major data problems in nascent industries, like Prelude will be doing for cannabis."

Karan Wadhera, managing partner of Casa Verde Capital views Prelude as an essential component of a sophisticated tech stack. "Our portfolio consists of companies that make up the core infrastructure of the cannabis industry. That is exactly how we see Prelude: an essential component of a sophisticated tech stack."

Casa Verde On Prelude: 'What This Industry Needs'

“Since our inception, Casa Verde has been focused on building critical infrastructure for the cannabis ecosystem. Prelude does just that. We see them as a crucial part of every operator's workflow. What Michael and Andrew have built, using their experiences at major organizations like AWS [Amazon Web Services] and Zara is what this industry needs,” Wadhera exclusively told Benzinga.

Highlighting the challenges of a fragmented and over-regulated cannabis market, Wadhera underscored Prelude's immediate impact on reducing costs and optimizing inventory.

“While currently focused on providing intelligence at the retail level, we see Prelude's opportunity to widen its scope to include the end-to-end supply chain. Inevitably, the goal is that end-user demand can be forecasted and used to inform production - efficiency wins in this scenario,” he observed. “As Prelude builds requisite trust with retail operators, it can begin to walk backward in the supply chain. We see Prelude becoming ubiquitous - similar to other portfolio investments we’ve made with Metrc, Dutchie - and it is poised to help make this industry further succeed.”

Customer testimonials, such as the impact observed at Green Dragon, validate Prelude's efficacy. Glenn Standridge, owner of Green Dragon, attested to the profound influence Prelude had on profitability and cash flow, calling the ways it's transforming their business incredible. “Customer feedback and results are certainly important in evaluating investment opportunities. Early-stage investments are also heavily impacted by the strength of the team, macro tailwinds, and broader market opportunity,” Wadhera added.

“The path to success is never a straight line and it’s important to bet on the right combination of all of these factors to ensure that a company can respond to the challenges that are inevitable in building a business,” he concluded.

Read Next: Listen to Benzinga Podcasts: Artificial Intelligence In Cannabis

Image created using artificial intelligence tools