Berlin startup Demecan happens to become the only German company that is given the permission to produce medical cannabis in Germany. Demecan will be in a position to generate at least 2,400 kilograms of dried cannabis flowers over the next four years. Demecan managed to complete a Series A financing round of €7 million to expand its production facility for medical cannabis and the wholesale trade in Germany. The other half of the funding came from a single German family having its roots in the consumer goods sector. Two other companies from Canada also bagged the contract to produce medical cannabis in Germany in May 2019.
This is indeed a defining moment for Germany and it would be the first investment in this sector for the private investor network connected to btov Partners (a VC) which manages assets of €420 million. In the past, btov has made investments in tech startups such as Blacklane, Data Artisans, DeepL, Facebook, Foodspring, ORCAM, Raisin, SumUp, Volocopter and XING.
In his statement, Jennifer Phan of btov Partners said that – “Demecan is operating in a very attractive market as currently Germany represents the third-largest market for medical cannabis in the world. Our company has the advantage of being the first-mover in this highly regulated market environment and we are the only German manufacturing and trading company in the European market.”
Demecan co-founder, Dr. Constantin von der Groeben further added that – “The production would kick start in 2020. In recent years Demecan has intensively dealt with the market and by winning the tender process our company has gained an important milestone. We look forward to focus on further growth with each passing day”.