German startup invested $7 million in medical cannabis
Berlin startup Demecan has completed a Series A financing round of €7 million, invested by btov Partners and a single German family office, which is understood to have its roots in the consumer goods sector. The new proceed will enable the company to expand its production facility for medical cannabis and the wholesale trade in Germany. It has become the only German company that produces medical cannabis.
German technical investor leads series for Germany’s first medical cannabis startup. Germany just hit a new milestone in the space where venture capital and the burgeoning cannabis industry meet. However, medical marijuana is the only medicine that helps Dalton Hunsberger with seizures, nausea, and anxiety.
German startup Demecan closed the investment round A and received $7 million. This is to expand production and sales of medical cannabis. Demecan is a producer of medical cannabis in Germany. They obtained a license to produce and process at least 2400 kg of medical Cannabis over a period of four years in Germany.
A German tech investor supported a medical cannabis company
Company is innovative, transparent and follow their goals consistently. Demecan places a high value on scientific expertise and experience with phytopharmacological products. Furthermore, their vision is to increase the quality of life of all our patients.
Only three companies – two of them from Canada – have been awarded contracts to produce medical cannabis in Germany so far. On behalf of the Federal Institute for Drugs and Medical Devices (BfArM) Demecan will produce at least 2400 kgs of dried cannabis flowers over the next four years.
The company will start the cultivation of medicinal cannabis in Germany in July 2020 in its facility close to Dresden. They will be the first and only German producer of medicinal cannabis. In addition, all of our products will adhere to the highest pharmacological standards and be produced in accordance with GACP and GMP standards.
“Demecan works in a very attractive market. Today Germany represents the third largest medical cannabis market in the world. It is on the way to growth. Furthermore, we believe that the company has the advantage of being a pioneer in this field,” says Jennifer Fan of btov Partners.
Fully controlled conditions
Demecan’s cannabis plants will be cultivated under complete climate control. From the first clone until the harvest. People in the company closely monitor and regulate lighting and temperature conditions to fit plants’ needs ideally and dynamically.
Demecan ensures through specialized filters and double-door system that no pest or spores can enter our production facility. Additionally, this allows producing clean and natural cannabis without the use of pesticides or irradiation. The company uses clean and sterilized reverse osmosis water to control the nutrients plants need to grow.
Main company’s investor
The main investor was the German venture fund btov Partners. It has been working since 2000 and has already invested in 112 projects, including ORCAM, Facebook and others.
The Berlin-based company is the only one in Germany that has an allowance to grow medical cannabis. Previously, the startup received permission from the Federal Institute for Medicines and Medical Devices. This means that Demecan can produce at least 2400 kg of dried cannabis flowers before 2023. Demecan has a focus on further growth and the launch of production in 2020.
Cannabis is a great use in a wide range of medical conditions. These include alleviating nausea for cancer patients undergoing chemotherapy, improving appetite in people with HIV/AIDS, reducing chronic pain, helping with anxiety and treating severe forms of epilepsy.
(Featured image by Annie Spratt)
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