GERMAN tech investors have taken their first step into the cannabis space backing leading domestic producer Demecan.
The Berlin-based company was the only German firm to win a cultivation contract to support its domestic medical cannabis market.
Demecan has now secured the support of Btoy Partners which has previously invested in tech startups such as Facebook, DeepL, Foodspring, Blacklane, and Data Artisans.
In a €7m funding round initiated by Demecan, Btov was one of two major contributors, with the second being a network of high-net worth individuals.
The cash will be used to expand Demecan’s production facilities for medical cannabis and the development of its wholesale network across Germany.
Jennifer Phan, of Btov, which manages assets of €420 million, said Demecan benefits from ‘first-mover advantage in a highly regulated market’ and is ‘the only German manufacturing and trading company in the European market’.
Germany legalised cannabis medication in 2017 and there were an estimated 30,000 patients by the end of 2018, with imports of cannabis totalling 22,000 kilograms.