DEMECAN has completed a Series A financing round of 7 million euros. According to the company, the funding will be used to expand the production facility for medical cannabis and the wholesale trade in Germany. "It is the first investment in this sector for venture capital firm btov Partners," they explain. "Half of the investment is provided by the Private Investor Network of btov Partners and half by a German Single Family Office, which has its roots in a successful Fast Moving Consumer Goods company."
DEMECAN is the only German company allowed to produce medical cannabis in Germany. Three companies, two of them from Canada, were awarded the contract to produce medical cannabis in Germany in May 2019. On behalf of the Federal Institute for Drugs and Medical Devices (BfArM), DEMECAN will produce at least 2400 kilograms of dried cannabis flowers over the next four years. DEMECAN is also active as an importer and wholesaler of medical cannabis and can thus cover the entire value chain. The estimated market volume of medical cannabis in Germany will be approximately 1.2 billion euros by 2024.
Jennifer Phan of btov Partners explains: "DEMECAN operates in a very attractive market at the right time. Germany currently represents the third-largest market for medical cannabis in the world and is on a growth path. We believe that the company has a first mover advantage in a highly regulated market environment, especially as it is the only German manufacturing and trading company in the European market".
Dr. Constantin von der Groeben, co-founder of DEMECAN, adds: "In recent years, we have intensively dealt with the market and reached an important milestone by winning the tender process. We are now focusing on further growth and the start of production in 2020. We are very pleased with the confidence placed in us by btov Partners."
Dr. Adrian Fischer, also co-founder of DEMECAN, adds: "In this young and fast growing industry it is crucial to have reliable partners who share our focus on patient well-being and our self-image as a pharmaceutical producer and wholesaler.“