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Holding Company
sugarmade.com

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Investments

1

About Sugarmade

Sugarmade (OTCQB:SGMD) specializes in growing and acquiring hydroponic brands to maximize value for our employees, shareholders and other stakeholders.

Sugarmade Headquarter Location

750 Royal Oaks Dr

Monrovia, California, 91016,

United States

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Latest Sugarmade News

How Nug Avenue Expanded Their Business Despite the Pandemic

Sep 24, 2021

By Jamie Steigerwald Jamie Steigerwald My company, Nug Avenue , was no exception. Since its inception in February 2021, our licensed cannabis delivery service in Los Angeles has grown into a high-profile business within the legal cannabis space. Our parent company Sugarmade (OTCMKTS:SGMD), a California-based vertically integrated cannabis corporation, recently closed on a property that will serve as Nug Avenue’s second distribution and delivery hub in the City of Angels. On August 31, Sugarmade also signed a Definitive Agreement to obtain licenses from the Los Angeles Department of Cannabis Regulation (the “DCR”) and the California Bureau of Cannabis Control to open three new Nug Avenue delivery hubs. The medical and/or legal cannabis industry started taking off before the pandemic and powered through it. According to industry data , sales for legal marijuana to eligible adults boomed to some $18 billion in 2020—a 67% increase in sales over 2019. In short, Nug Avenue is poised to expand even more in the coming months and years. Though a large portion of this success was due to an emerging market that proved to be pandemic-proof, this was only one factor in its success. Focus on the Customer First, Sales Come Second Fortunately, California state legislators and local government officials deemed businesses such as Nug Avenue essential for the sake of public health in the early stages of COVID-19. This immediately alerted me to the fact that Nug Avenue and other businesses operating in customer sales-centric markets would continue to remain in demand throughout the pandemic. As a result, we set out to implement a number of marketing strategies that focused more on the value of each individual customer and less on the sales themselves. For example, implementing a senior discount for customers aged 65 and over allowed this demographic of our customers to feel more valued, which led directly to an uptick in sales revenue through providing additional value to these customers. In a similar fashion, Nug Avenue noticed early on in its operations that the pandemic had caused a spike in demand for edible cannabis products, whereas sales for products like vape pens decreased. In paying attention to what our customers wanted out of both our business and our products, we were able to deliver upon those needs and see additional growth and success. Integrate Valuable Digital and Hybrid Sales Platforms Perhaps one of the wisest business decisions companies made during the pandemic was the implementation and subsequent utilization of digital or hybrid sales platforms, such as the delivery of goods to customers via digital apps. Anything businesses could do to lessen their clientele’s potential exposure to the COVID-19 virus paid off in sales. This integration was crucial to Nug Avenue’s initial success during the pandemic, since it not only appealed to consumers, but also allowed us to maintain better control over our internal supply chain. We also brought other existing digital platforms into our business like Weedmaps . This website allows customers to search for eligible cannabis delivery services in their area with the products they desire and place orders for delivery from the comfort of their own homes. By utilizing digital and hybrid platforms such as these, Nug Avenue was able to grow from a small cannabis delivery hub with a handful of regular members into a rapidly expanding business serving more than 10,000 customers in a matter of mere months. Without such integrations, I doubt that we would be able to boast such success in such a short period of time. Make a Business Model Attractive for Investors As smart investors should always explain to budding entrepreneurs (pun not intended), a venture’s business model is what will ultimately win over investors willing to risk their capital funds. A wise investor, however, will tell you that a winning business model must demonstrate the value your business brings not only to its customers, but also to its employees and stakeholders. Thankfully, the latter was such the case with Nug Avenue. Upon seeing our company’s initial success, our parent company Sugarmade Inc. presented me and my team with the opportunity to acquire an additional property in Los Angeles. This location will become our second distribution and delivery hub, allowing us to service customers in West LA by both increasing product availability and lowering overall delivery times to this region. Because Sugarmade had, at the time, acquired three California licenses for non-storefront cannabis commercial operations, our lead investor’s decision to support the move simply made sense. However, it was the combination of our business model and customer-centric sales philosophy that truly led to them allowing Nug Avenue to utilize all three of these licenses, further adding to our success. Continue Reading

Sugarmade Investments

1 Investments

Sugarmade has made 1 investments. Their latest investment was in Hempistry as part of their Corporate Minority on July 7, 2019.

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Sugarmade Investments Activity

investments chart

Date

Round

Company

Amount

New?

Co-Investors

Sources

7/26/2019

Corporate Minority

Hempistry

$0.19M

Yes

2

Date

7/26/2019

Round

Corporate Minority

Company

Hempistry

Amount

$0.19M

New?

Yes

Co-Investors

Sources

2

Sugarmade Acquisitions

3 Acquisitions

Sugarmade acquired 3 companies. Their latest acquisition was NUG on February 12, 2021.

Date

Investment Stage

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Total Funding

Note

Sources

2/12/2021

Series A

$991

$15M

Corporate Majority

1

8/13/2019

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$99M

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10

10/17/2018

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$991

$99M

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10

Date

2/12/2021

8/13/2019

10/17/2018

Investment Stage

Series A

Companies

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Valuation

$991

$991

Total Funding

$15M

$99M

$99M

Note

Corporate Majority

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Sources

1

10

10

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