Vangst, a Colorado-based hiring platform for the cannabis industry, has raised $19 million in Series B financing.
The company has earmarked the investment for the expansion of its platform into new markets on a dynamic sector, and new products in domains such as training and employee payment solutions.
“The cannabis industry is one of the fastest growing industries and job creators in the world, and Vangst is defining how cannabis businesses attract and hire talent in a brand new industry,” said founder and CEO Karson Humiston.
“We are incredibly excited for the opportunity to help thousands of people land their dream job in the cannabis industry.”
Level One Fund led the financing round, with participation from previous investors including Lerer Hippeau, Colle Capital, Casa Verde Capital, Phyto Partners, and new investors such as L2 Ventures, Althea, Delta Emerald Ventures, and Achari VC.
“Cannabis is an undeniably large and fast-growing market, and Vangst is the only company offering scalable recruitment solutions tailored for the industry’s unique needs,” said James Stewart, managing partner at Level One Fund.
“Few, if any industries, share the constant state of flux and unpredictability that cannabis has, and consequently, there are only a handful of founders equipped to handle the challenges that come with it.”
He added, “Vangst is not only an extremely effective solution to these challenges, but its founder is a true force of nature. We are proud to lead this round and support Vangst as it continues to be a crucial utility to the entire industry.”
Founded in 2016, Denver-based Vangst says it works with 1,200 cannabis businesses. Its platform offers to streamline the hiring process by matching both full-time employees and vetted gig workers with cannabis companies across the U.S.
Describing itself as the first and only gig platform in its field, Vangst claims it has filled over 150,000 part-time positions since the product was launched in 2018.
According to the company, the cannabis industry has posted a 25% increase in full-time employees over the past 12 months. The sector currently comprises over 400,000 employees, with a 100% increase forecast by 2025.