Seeking to raise $1,000,000
Apricot Analytics is a product quality test lab in the California legal cannabis market, the largest cannabis market in the country, valued at $3B in 2019, growing to $5.6B in 2020 (1). Test labs are a highly lucrative industry, enjoying 60% gross margins. By law, every product shipment must be tested for potency and purity by an independent licensed test lab. The rapidly growing market, combined with challenging regulatory, technical, and capital requirements to open a test lab have resulted in an acute shortage of test lab capacity: 3,467 licensed producers served by only 38 licensed labs (3).
We are raising $1M in our seed round which is 60% complete. Proceeds will be used to finish building out and equipping our 3500 sq ft lab in Oakland. Apricot Analytics’ business plan is to secure our license in Q4 2019, become profitable within one year, establish a differentiated product offering, generate sufficient cash to internally fund expansion, and become an attractive acquisition candidate.
Sources: (1) BDS Analytics, (2) CA Bureau of Cannabis Control, (3) CA Bureau of Cannabis Control