WebJoint

DoorDash for Weed

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Company Information

Website:

https://webjoint.com/

Sector:

eCommerce

Location:

Sherman Oaks, CA

WebJoint is taking its cue from DoorDash.

But rather than helping hungry customers order food, this company enables users to get cannabis delivered straight to their door.

As of 2021, the U.S. legal cannabis market was valued at around twenty-five billion dollars. But according to Research and Markets, it’s projected to reach $176 billion by 2030.

Online cannabis delivery, in particular, is growing fast. The Covid pandemic created a 300% increase in cannabis delivery orders. And in California, a state which brought in more than three billion dollars of legal cannabis revenue in 2019, fifty-four percent of residents purchase cannabis exclusively through delivery.

In fact, one-third of licensed cannabis deliveries made in The Golden State are serviced by the same platform. That platform is WebJoint.

WebJoint was created to bring together a disconnected cannabis market. The main issue is that brands can’t sell cannabis direct to consumers. Both parties must work with a middleman: licensed retailers. The problem then becomes…

• Brands have marketing dollars and loyal consumer bases, but can’t fulfill orders without a retail license.

• Retailers don’t have the same marketing power as brands, but are the only ones who can fulfill orders.

• Consumers know what brands they want, but don’t know which retailer to purchase from. Inventory, availability, and pricing can vary between retailer, too.

The result is brands being disconnected from customers, and retailers struggling to keep track of orders while also maintaining compliance with state regulations.

That’s why WebJoint’s solution was to build a direct-to-consumer infrastructure. To do it, the company created two key products:

Its flagship product is e-commerce and inventory management software for cannabis delivery services. It manages customers and staff, provides sales reports and analytics, creates delivery zones, and tracks drivers.

Importantly, this software is certified by and integrated with METRC, the leading “seed-to-sale” tracking software in the U.S. This enables WebJoint to automate operators’ compliance with state regulations.

The second product is a digital cannabis marketplace that enables anyone — brands, influencers, celebrities — to leverage WebJoint’s delivery network and enable direct ordering from any website — no cannabis license required.

Here’s how WebJoint’s software is used:

First, a consumer places a cannabis order through WebJoint’s platform. Then, a cannabis brand accepts the order on their own website by using the company’s e-commerce technology.

WebJoint’s software then dispatches the order to the retailer nearest to the customer. And finally, the retailer fulfills and delivers the order on behalf of the brand.

For its delivery software suite, WebJoint collects a fee from cannabis delivery operators, based on the number of retail orders they process a month. Additional fees center around customer notifications via text message, delivery tasks, and digital payment processing.

Additionally, WebJoint collects a fee from marketplace customers through its direct-to-consumer platform. This fee is based on the number of cannabis delivery services they want to connect to. The company also collects a flat rate service fee for every customer order sent to the retailer using its platform.

WebJoint launched operations in 2017. And since then, it’s processed more than three million orders — more than $244 million worth — in California, Maine, and Massachusetts.

More than half a million consumers are registered on WebJoint’s platform. And the company services more than a third of licensed, operating cannabis deliveries in California.

WebJoint has key partnerships with cannabis delivery services Weedmaps, Cova, KindTap, and Happy Cabbage. And the company has raised more than three million dollars from investors, including RedTape Ventures, an early-stage startup accelerator.

With funds raised, WebJoint aims to expand its delivery services to New York, Utah, and New Mexico.

Team Background

Hilart Abrahamian - Co-Founder & COO

Prior to starting WebJoint, Hilart co-founded Code Climb, the web technology company run by his co-worker Chris Dellolio. Before that, he was a website manager with Ford Motor Company.

He began his career as the Founder of OctoTuts, a graphic and web design blog and YouTube channel. One of his videos on web design was viewed more than seven million times.

Hilart holds a Bachelor’s degree in Political Science and Entrepreneurship from UCLA.

Christopher Dellolio - Co-Founder & CEO

Chris started developing web apps at the age of fourteen, sold his first startup by seventeen, and co-founded WebJoint at age nineteen. He has more than a decade of experience developing web applications and software.

He began his career as co-founder of BattlePerks, a technology platform focused on the gaming sector. From there, he was a web developer with Delta Groove Productions, a record label.

More recently, he co-founded Code Climb, a web technology company offering services including web design, e-commerce solutions, and web hosting.

Chris earned an Associate’s degree in Web Page and Digital/Multimedia Design from The Art Institutes.

Daltry Martin - Director of Sales

Daltry has served as WebJoint’s Director of Sales for six years.

Previously, he was an assistant manager with Ivy 3000, a marketing firm, where he focused on sales and sales training.

Raising
$4.10 million
Committed
$180K (4%)
Current Valuation
$44.40 million
Min. Investment
$499
Deal Type
Title III
(For all investors)
Offering Type
Equity
Finance History
  • $1.50 million
    2017-11-13
    Red Tape Ventures
    (Series A)
  • $55K
    2016-01-02
    Unknown
    (Angel)
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