Frontier Risk Group Secures $3 Million in Seed+ Funding

LOS ANGELES- Frontier Risk Group, a company specializing in insurance solutions for the cannabis industry, has announced the successful completion of a $3 million Seed+ funding round. This round was led by Casa Verde, a venture capital firm focused on the cannabis sector, with significant participation from existing investors.

The funding will support Frontier Risk Group’s efforts to develop a technology-enabled insurance ecosystem tailored to the cannabis supply chain and the emerging THC beverage market. The company aims to provide comprehensive insurance solutions across the entire cannabis supply chain, addressing the unique risks associated with this highly regulated industry.

In addition to the investment from Casa Verde, Frontier Risk Group has formed a strategic partnership with Illinois Casualty Company, an A.M. Best A- rated carrier with a focus on the food and beverage industry. This partnership marks a move by traditional insurers into the cannabis sector, anticipating significant growth in THC-infused beverages as an alternative to alcohol.

James Whitcomb, CEO of Frontier Risk Group, stated that the capital will enable the company to continue its brokerage growth and transition to a full-stack retailer and capacity provider. The goal is to offer the entire cannabis supply chain a one-stop solution with underwriting specific to highly regulated industries.

The cannabis industry has seen substantial growth, with medical cannabis now legal in 20 states and recreational cannabis available in 23 states, along with the District of Columbia. Retail cannabis sales are projected to reach $54 billion by 2027. Despite this expansion, businesses involved in cannabis cultivation, retail, and infused products face unique insurance challenges that have deterred many traditional insurance providers.

Frontier Risk Group’s initiative aims to bridge this gap by offering specialized insurance solutions backed by technology and data, thereby improving access, pricing, and risk capacity across the cannabis industry’s supply chain.