Cannabis delivery startup Eaze is looking to raise a new round that could value it at $400 million

AP Photo/Richard Vogel

Cannabis startups are seeing a flood of VC money.

• Cannabis delivery startup Eaze is seeking to raise $50 million to $75 million in its latest funding round, according to two sources with knowledge of the deal.
• The San Francisco-based startup is looking to raise the round at a valuation of $350 million to $400 million, the sources said.
• Sign up for our new weekly cannabis newsletter, Cultivated.

Cannabis delivery startup Eaze is looking to raise another $50 million to $75 million just months after closing a $65 million funding round, according to two sources who have firsthand knowledge of the deal.

The sources said the San Francisco-based startup is looking to raise the round at a valuation of $350 million to $400 million. Eaze has made the rounds pitching both mainstream venture capital firms as well as cannabis-focused investors on the deal, the sources said.

A spokesperson for Eaze declined to comment.

Because Eaze is a tech platform - in the same vein as Uber - it is one of the few cannabis startups that has been able to attract top Sand Hill Road venture firms who are wary of investing directly in companies that sell or cultivate cannabis because it is illegal under US federal law.

Read more: A group of Wall Street veterans just raised $250 million to chase down deals in the red-hot cannabis sector. Its CEO explains how it got Credit Suisse on board.

Previous investors in Eaze include DCM Ventures, and Jim Clark, a co-founder of Netscape.

Eaze runs an online marketplace where consumers in California can purchase cannabis products and have it delivered to their residence. The company recently announced an expansion to Portland, Oregon, its first foray outside of California.

Eaze has somewhat scaled back its lofty goal of delivering $1 billion worth of cannabis. The company said in documents obtained by MarketWatch that it will sell around $412 million worth of cannabis products on its platform in 2020.

Cannabis-tech startups are finding fertile ground to raise VC money. Venture capital firms have already poured close to $1.6 billion into cannabis startups this year - that's up from just $16 million in 2013.

Shayanne Gal/Business Insider

• Read more:
• 'It's a once in a decade opportunity': How top VC firms like Greycroft and Lerer Hippeau are cautiously opening their doors to the potentially $194 billion cannabis industry
• We got an exclusive look at the pitch deck two Ivy League MBAs used to raise a $1.5 million seed round for a cannabis-infused beverage startup
• CBD and hemp startups are using creative loopholes to skirt Facebook's ad ban. Here's how they're doing it.
• Investors just launched the first VC dedicated exclusively to psychedelics, which they call the 'next wave' after the cannabis boom