PayPal co-founder Peter Thiel‘s Founder Fund’s investment in a marijuana-related app might have started to ball rolling for similar players in the legal weed field, such as Eaze, a medical marijuana app that has raised a staggering $10 million in Series A funding, according to Forbes.
While a tech startup could see that amount in an early fundraising, the number is not what those in the medical marijuana area expect, given the wariness of many investors to take a risk in a legal gray area, like marijuana. Eaze management acknowledge that Thiel’s embrace of pot as an investment opportunity changed the ballgame entirely, with his $75 million investment in Privateer Holdings, which serves as a holding company for pot companies.
Eaze spokeswoman Carol Vespi told Forbes, “The six month difference between when we raised seed (money) to now, the investor sentiment has changed a lot. A lot has to do with the Peter Thiel announcement. It’s okay to talk about funding a weed start up.”
There are still hurdles. Although Eaze enables clients who are verified to be eligible for medical marijuana with dispensaries that deliver, its app is not allowed by Google and is not sold in the Apple App store, but can be accessed as a web app.