MJ Freeway dominated the point-of-sale and inventory management space in the cannabis sector with very little competition for a long time, boasting by some estimates a 30% market share as late as 2016. In late 2016, the company announced the launch of their enterprise resource planning system: MJ Platform.
Then, just as a few serious competitors started to enter the space and gain traction among VC’s, MJ Freeway hit a major snag – a security breach that shut down the entire system for days. This emboldened competitors and turbocharged their fundraising. Companies like Flowhub and Greenbits who pitched on Arcview’s stage were capturing market share. Greenbits recently closed on $17 million from well-known tech VC Tiger Capital.
Then a few weeks ago, MJ Freeway announced a $10 million Series C global raise followed up by the news last week of this public merger. Now with both the largest marketshare and the largest balance sheet, how will they capitalize on this moment? Will they buy their competitors out? Will they expand into other software offerings?