Berlin Cannabis Start Up Closes $44M Funding Round In Biggest Raise Yet For European Cannabis
BERLIN–Berlin-based cannabis start-up Sanity Group announced today it has closed a $44.2M USD Series A financing round with new investment led by Swiss venture capital firm Redalpine along with US-based Navy Capital and SOJE Capital. GMPVC also participated in the round.
This represents the largest round of cannabis funding in Europe to date and brings total investment in Sanity Group to $73M USD.
An expanding position as a leading cannabis company in Europe
Sanity Group aims to improve people’s quality of life through the use of cannabinoids. In addition to pharmaceuticals, the focus is also on wellbeing and cosmetic products.
The new capital will be used primarily to further expand the Group’s medical division in Europe. Funds will also be used for the build out of EU-GMP-compliant research and production facility new Frankfurt am Main for the entire Group, which will serve both the medical and the wellbeing areas of the Sanity Group in the future, and to expand Sanity Group’s consumer goods business. Sanity Group currently employs 90 employees in Europe including cannabis experts, physicians, pharmacists and biologists.
“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,” says Finn Age Hänsel, Founder and Managing Director of Sanity Group. “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.”
Previous investors include HV Capital, TQ Ventures, Atlantic Food Labs, Cherry Ventures, Bitburger Ventures and SevenVentures. In addition, Sanity Group has attracted prominent celebrity angels including music producers will.i.am, Scooter Braun and actress Alyssa Milano.
“Our goal is to leverage the full potential of the cannabis plant and to research and harness the various cannabinoids. We are always on the lookout for partners who can not only support us financially in our endeavors, but above all are a good strategic fit for us. Redalpine’s investments in the life science and medical sector as well as Navy Capital with cannabis portfolio companies in the healthcare and consumer-goods sector ideally complement our existing investor setup and cover the entire range of our business in the health, life science and consumer-goods sector,” adds Sanity Group co-founder and Managing Director Fabian Friede, who founded the company in 2018 together with Finn Hänsel with the aim of providing people in Europe with newly developed cannabinoid-based medicines and health products.
“The European cannabis market faces exciting developments in the coming 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,” says Sean Stiefel, CEO at Navy Capital.
(This information is primarily sourced from Sanity Group. Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).
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