NatureTrak

Banking for Cannabis Companies

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Company Information

Website:

https://naturetrak.com

Sector:

Financial Services Software

Location:

Vacaville, CA

NatureTrak is a banking-as-a-service platform for the fast-growing cannabis industry.

This platform offers risk management for financial institutions that support cannabis-related businesses. A full suite of compliance tools and risk-analysis features create full transparency between cannabis companies and the banks that support them.

Simply put, NatureTrak makes cannabis banking easy. And right now, that’s a major problem.

While cannabis sales are soaring across the U.S. — in 2020, sales reached $20 billion, and are expected to reach $35 billion by 2025 — it’s still a relatively new and complex industry.

Companies, in particular financial institutions that offer banking for cannabis-related businesses, are exposed to significant legal, operational, and regulatory risks. At the same time, they have to abide by constantly-changing state and local regulations, as well as various compliance issues.

Simplifying this problem, however, unlocks an $85 billion opportunity. And NatureTrak aims to seize it.

It’s created an enterprise risk-management platform. This platform enables financial institutions to safely provide funding to marijuana, cannabidiol (CBD), and hemp businesses.

With NatureTrak, cannabis operators can demonstrate to banks that their business is legitimate and make it more likely they’ll receive necessary funding. Banks have rigorous standards for which cannabis companies can become clients (for example, banks often need to know the exact ownership share of the company). NatureTrak offers verification services, giving the banks peace of mind and assurance of a well-run organization.

At the same time, banks can use NatureTrak to pass federal audit checks by tracking and recording payments and deposits. Most banks also have their own anti-money-laundering software. NatureTrak’s software can integrate with these existing platforms and enable banks to keep alert for any issues happening with the cannabis-related business. It also has a Machine Learning tool that flags unusual behavior for cannabis clients.

NatureTrak uses a shared-revenue business model. It charges banks a one-time $25,000 implementation fee and then earns a share of revenue collected for each transaction made by the cannabis business (e.g., deposits, withdrawals).

NatureTrak created its platform in May 2017. It was originally a seed-to-sale tracing platform for cannabis and was awarded a government contract with the U.S. Virgin Islands.

In 2019, the company completed the Money20/20 startup accelerator. It began generating revenue in 2020, and expects to bring in $1 million in 2021. By next year, it projects to reach $6.7 million in revenues and have nearly 30 financial institutions using its software.

Team Background

Jontae James - Founder & CEO

Jontae has more than 15 years of experience in the enterprise software market, including time in the cannabis industry.

Prior to starting NatureTrak, he co-founded Bluntli, a digital licensing platform for cannabis companies. This platform helped bring transparency and legitimacy to the emerging cannabis market.

Before that, he was an account manager with BPG Worldwide, a media and entertainment business. He held this role after co-founding Your Out of Office, an office productivity tool, and starting The After Five Network, a professional networking organization.

Jontae earned a Bachelor’s degree in Marketing from the University of Saint Francis.

Ariana Van Austin - Cannabis Law Attorney

Ariana has spent six years consulting as an attorney to cannabis and cannabis-related businesses. She also taught cannabis licensing at McGeorge School of Law.

She began her career as a paralegal with Kasowitz, Benson, Torres & Friedman, a law firm. After that, she was a law clerk with Koeller, Nebeker, Carlson, and Haluck.

More recently, Ariana was an attorney with Porter Scott, a law practice. She then was an attorney and senior counsel with Kennaday Leavitt Owensby, another law practice.

She earned a Bachelor’s degree in Psychology from Drew University and a Law degree from the University of the Pacific.

Jennie Martinez - Chief Financial Officer

Jennie is a licensed CPA with nearly 20 years of finance and accounting experience.

In addition to her role with NatureTrak, she is a financial consultant with J. Lee Financial, a management consulting business. Previously, she was Director of Finance with 5th Planet Games, a computer gaming company. She held this role after serving as assistant treasurer with San Francisco Bay Gourmet Coffee.

Earlier in her career, Jennie was a senior associate with Ernst & Young, a professional services company. She began as an assurance associate with Haskell & White, an accounting firm.

She earned a Bachelor’s degree in Business Administration from California State Fullerton.

Dan Fowkes - Chief Revenue Officer

Dan has spent three decades in the enterprise software business.

He began his career as Vice President of North American Sales with CableData, a telecommunications company. He then held a similar sales role with PeopleSoft, an enterprise software platform for human resources and financial companies.

More recently, he was Senior Vice President of Sales with Unicru, makers of hiring and workforce analytics software. After that, he was Vice President of Sales with POS Portal, a computer software company. Most recently, he was Executive Vice President of Marketing and Sales for Revelar Health, a medical device company.

Dan earned a Bachelor’s degree in Economics from Stanford University.

Raising
$1,000K
Committed
$150K (15%)
Current Valuation
$13 million
Min. Investment
$100
Deal Type
Title III
(For all investors)
Offering Type
Equity
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