'Keurig for Weed' Makers Raise $5.7 Million in Funding

STONEHAM, MA — The makers of a product many are calling the "Keurig for marijuana" say they are one of the most well-funded startups in the cannabis industry.

Stoneham-based CannaKorp announced Thursday that it has successfully closed its Series A round of funding, raising a total of $4.1 million. That puts the company at a total of $5.7 million raised in 2016, making the company one of the most well-funded startups in the cannabis industry, according to the announcement.

"CannaKorp is positioned to be a disruptive force in the booming cannabis industry led by one of the most impressive teams in the space," stated Brett Rentmeester in a statement, who is the president and chief investment officer at Singularity Capital Management and a CannaKorp board member.

The funding will be used for manufacturing, enabling cultivator and dispensary partners and go-to-market activities for the CannaCloud product, the company said. The device uses single-use "pods" with consistently portioned amounts of marijuana, similar to the popular single-use coffee machine.

According to a report by the Boston Globe, the device heats marijuana to a point where active compounds are released, without burning the plant. The Globe further reports that several of CannaKorp's executives are veterans of Keurig Green Mountain.

CannaKorp CEO James Winokur told BostonInno that the first markets for the product will be in Colorado, Washington state, Oregon and Rhode Island as well as here in Massachusetts, and it is expected to retail between $150 and $170.

According to the announcement, Singularity Capital Management, a private equity firm focused on the cannabis industry, is CannaKorp's lead investor in its Series A round.

"We are excited about introducing our CannaCloud in 2017," Winokur said in the announcement. "Thanks to our investors, the CannaKorp team is eager to put that capital to good use so patients and consumers, especially our faithful followers, can enjoy a more convenient, consistent and high-quality cannabis experience."

Image via CannaKorp™ Inc.